"The art of economics," economist Henry Hazlitt wrote nearly seven decades ago, "consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups."
More than a year has elapsed since the U.S. economy went into a tailspin with the panic that shook the world’s financial markets in the fall of 2008. Two presidential administrations have attempted to solve the crisis by political means, using taxpayer dollars to bail out certain corporations deemed too large or too critical to be allowed to fail.
When he appeared on ABC News's This Week on February 7, U.S. Treasury Secretary Timothy Geithner was quizzed about the risk of the United States losing its triple-A credit rating, the chances that foreign investors might start shunning US debt, and whether the economy would suffer a double dip recession.
Sam Dillon of the New York Times reports that the depletion of federal stimulus money will result in schools approaching "a funding cliff." Dillon claims that the federal stimulus has managed to stave off drastic cuts at public schools in most parts of the nation thus far, but that the period of sustenance will soon end.