https://youtu.be/UlHOAUIIuq0?t=22m30s
It strikes me that a very corrosive thought process in our society has been to politicize the notion of "how competitive we are" economically. Sure, that matters, but I see it more as a symptom than a cause of social problems. I hate seeing it brought up in discussions about education, because sure, competition is going to be a part of societal living, and in many educational environments, there's some aspect of competition to it (a story I heard from my grandfather from when he entered medical school was, "Look to your left. Look to your right. Only one of you will be graduating with a medical degree," because that was the intended ratio along the bell curve), but bringing economic competitiveness into education misses the point badly. I understand where the impulse to focus on that comes from, because globalization tends to produce a much more competitive economic landscape, where people feel much more uncertain about basic questions they have to answer. Part of which is creating the life they want, but often people end up missing a significant part of actually creating it (if it's even feasible. What I see more often is a compromise, because there are only so many hours in a day, and only so much effort can be put into it) in the process of trying to create it. They get caught up in "doing," as you said.
As I've thought back on the '60s, it seems like while there was still competition going on, the emphasis was on a political competition, internationally, not economic. There was a significant technological component to that, because of the Cold War/nuclear weapons. The creation of ARPA and NASA was an effect of that. My understanding is we underwent a reorientation in the 1980s, because it was realized that there was too little attention paid to the benefits that a relatively autonomous economy can produce, killing off bad ideas, where what's being offered doesn't match with what people need or want, and allowing better ones to replace them. That's definitely needed, but I'm in agreement with Kay that what education should be about is helping people understand what they need. Perhaps we could start by telling today's students that if and when they have children, what their children need is to understand the basic thought-inventions of our society in an environment where they're more likely to get that. Instead, what we've been doing is treating schools like glorified daycare centers. Undergraduate education has been turned into much the same thing.