It has been argued that in the knowledge economy, a graduate degree will become the new bachelor's degree, the minimal education credential that high-skills employers require. If that is so, then the United States is in peril of losing its competitive edge, with long-term consequences for the economy, its citizens' quality of life, and its global standing. This report examines the data behind these assertions, and proposes a set of recommendations to strengthen U.S. graduate education in partnership with industry and government. Policymakers, institutions of higher education, and business leaders all have a stake in the process of producing well-prepared graduate degree holders. People with graduate degrees teach in schools and universities, drive innovation, attract intellectual and commercial investment, and strengthen American prestige and economic power. This report provides a clear view of the roadblocks and the pathways to a graduate degree and to an improved system of graduate education in the United States. (Contains 3 tables and 6 figures.)