Hanushek misinterprets the data on which he bases his conclusion and draws inappropriate policy implications from them. The goals of a school system affect how its resources are used. Educational goals are highly diverse. Accordingly, the measures of output used in Hanushek's studies are inappropriate. To develop more effective measures, the nature of the teaching and learning process must be much better understood. Fortunately, a solid beginning has already been made among specialists in education on that critical task; but more work is needed.