COVER
How to Bring Our Schools Out of the 20th Century (Society)
The world has changed, but the American classroom, for the most part, hasn't. Now educators are starting to look at what must be done to make sure our kids make the grade in the new global economy
Building a New Student in Michigan
How one state is re-engineering its schools for the new century
NATION
The Perils of Being a Frontrunner
John McCain was a straight-talking upstart in the 2000 presidential election. Now he's poised to be the G.O.P. favorite for 2008, But at what cost?
WORLD
Crime: The Spy Who Knew Too Much (Crime)
The investigation into the death of a Russian dissident in London heats up and sheds an ugly light on Vladimir Putin's rule
Looking The Other Way
The U.S. wants to turn over security to the Iraqis. But that sometimes means ignoring their crimes
Advice and Grudging Consent (Letter From Washington)
The Iraq Study Group has its say. Now Bush has to figure out what to do next
Avoiding Iraq Syndrome (Viewpoint)
Viewpoint: Richard Haass, president of the Council on Foreign Relations, warns against letting the failure in Iraq cause America to lose sight of its global role
The Big Lie About the Middle East (Viewpoint)
Tell James Baker: Arab nations don't care about the Palestinians
SCIENCE
A Condo on The Moon... (Space)
The manned space program heats up as NASA unveils its plans for a lunar base and finds signs of flowing water on Mars
SOCIETY
Two Mommies Is One Too Many (Viewpoint)
Mary Cheney is starting a family. Let's hope she doesn't start a trend
BRIEFING
Verbatim: Dec. 18, 2006 (Notebook)
Doors Wider Open (Notebook)
Milestones Dec. 18, 2006 (Notebook)
Suffering for Someone Else's Art (Notebook)
The State of Our Health (Notebook)
What's Next: Dec. 18, 2006 (Notebook)
Numbers: Dec. 18, 2006 (Numbers)
The Pols Weigh In (Notebook)
Can We Improve on Affirmative Action? (Notebook / In The Arena)
The Supreme Court appears set to roll back racial preferences. But there may be better ways to achieve racial diversity
All I Wanted For Christmas (Notebook)
Punchlines: Dec. 18, 2006 (Punchlines)
BUSINESS
The Big Gulp at Starbucks
The already ubiquitous coffee chain hopes to triple its outletswithout diluting its boutique-y culture
ARTS & ENTERTAINMENT
Holiday Movies
What to do when there are only 12 days of Christmas but dozens of movies on offer? Here's a guide to some worth braving the crowds for
5 Great Photo Books (Worth Your Time)
To wrap up an issue filled with pictures, here are some terrific picture books
Movies: Yes, That's David Lynch (Movies)
The highly regarded director has always been considered eccentric. Now he's getting mad
SPECIAL SECTION
The Best Photos of the Year (The Best Photos Of The Year)
TIME's look back at the major stories of 2006, as seen through the eyes of our photojournalists
Photographer's Portfolios
See more images from our award-winning photographers
Your Shots
Our favorite photographs of 2006 sent in by TIME's readers
YOUR TIME
Travel: Where to Celebrate (Travel)
How to Have a Green Christmas (Home)
It may be the most wonderful time of the year, but it's also the most wasteful. Here's how you can be kind to the environment and still celebrate in style.
Health: Next Year's Diet Books (Health)
PEOPLE
People: Dec. 18, 2006
10 Questions for Dakota Fanning (Interview)
LETTERS
Letters: Dec. 18, 2006
My Person of the Year (Forum)
To help us make this year's selection, TIME asked people who have been featured in the magazine for their 2006 nominations. A sampling:
ESSAY
Fight for Your Right to Party
Our ancestors lived for holidays. Keep that in mind this season
ALSO IN THIS ISSUE
The Fight For the Middle (Time Bonus Section January 2007: Inside Business / Competition)
JCPenney and Kohl's are duking it out in a market sector they've revived
Play It Again, Boys (Time Bonus Section January 2007: Inside Business / Show Business)
After departing Disney, the Weinsteins have a new label and a new strategy
Change Agent: Telltale Fingertips (Time Bonus Section January 2007: Inside Business / Change Agent)
With biometrics, how you type can allow websites to know who you are--or aren't
Management: Growing Younger (Time Bonus Section January 2007: Inside Business / Management)
How profitable services and a savvy marketing campaign are fueling AARP's torrid growth
Small Business: Hackers For Hire (Time Bonus Section January 2007: Inside Business / Small Business)
Banks pay TraceSecurity and other companies to steal from them--and then show them the holes in their defenses
CEO Speaks: Q&A Daniel Vasella (Time Bonus Section January 2007: Inside Business / CEO Speaks)
The chief of drugmaker Novartis, a physician, has high hopes for cancer vaccines
New Routes To Profit? (Time Bonus Section January 2007: Inside Business / Global Influences)
Hurt by competition in the U.S., big airlines are looking to Accra and other far-off locales for profit