According to Paul Krugman, former economist, not spending massive amounts of money on education causes kids to fail:
…in low-tax, low-spending Texas, the kids are not all right. The high school graduation rate, at just 61.3 percent, puts Texas 43rd out of 50 in state rankings. Nationally, the state ranks fifth in child poverty; it leads in the percentage of children without health insurance. And only 78 percent of Texas children are in excellent or very good health, significantly below the national average.”
History has proven that there is little correlation between spending and student achievement. The effectiveness of money in schools is capped; its only real uses are providing the minimum required supplies and services (books, transportation, school buildings, etc.) and paying teachers (an expense that would be more efficiently used in a competitive environment).
Yet, despite overwhelming amounts of evidence to the contrary, Krugman still tries to tie student performance to government expenditure. For this reason I have to wonder if he knows anything about economics at all anymore.