Other People's Money Part II

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A couple of days ago, I wrote an AT blog post on a New York Times story about the Stimulus bill’s failure to stop a “green” company from going through major lay-offs.

On Monday The New York Times ran a story on how the Stimulus has “failed to prevent the most extensive school layoffs in several decades.”

Under the implicit assumption that local residents don’t know what’s best for them and their children, Obama and the Congress dedicated $100 billion of the Stimulus to school funding. But that money hasn’t been enough to prevent extensive school lay-offs.

In both public and private sectors, Obama’s big plans have fallen short or completely flat. Even after spending trillions, the president couldn’t make his promises come true. The late Milton Friedman explained why:

There's been one underlying basic fallacy in this whole set of… [economic] measures, and that is the fallacy…that it is feasible and possible to do good with other people's money.

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