The United States is competing in a dynamic global economy in which two assets--a skilled, versatile and highly adaptable workforce and the capacity for creativity, innovation and entrepreneurship--provide a decisive edge. To succeed in today's economic climate, the U.S. needs a well-educated, technically proficient workforce in all sectors and for nearly every occupation, including entry-level positions. The country needs workers who possess a deep, expansive knowledge in a broad range of subject areas as well as advanced reading, writing and computational skills. But these high-level knowledge and skills alone are not enough for the U.S. to maintain its global competitive edge. What will set the American workforce apart from other countries with similar levels of knowledge and skills are creativity and innovation, according to the New Commission on the Skills of the American Workforce. Perhaps most importantly, creativity requires building upon the capacity of one's imagination to visualize new possibilities for human though, action and the use of materials. Improving the education system to ignite students' imagination, foster their creative drive, stimulate innovative thinking and generate implementable new ideas is vital to the long-term economic interests of the nation. The arts--both as a stand-alone subject and integrated into the curriculum--must be an integral part of a 21st century education if students are to succeed in a global economy. Arts learning experiences play a vital role in the development and application of the imagination. State Examples are appended. (Contains 8 footnotes.)