There is a great deal of talk about why the U.S. stimulus has not worked. Obama’s mistake was being too cautious in fearful times, writes columnist Martin Wolf in yesterday’s Financial Times. Wolf, who wanted a much bigger stimulus, glosses over an observation he made on February 4, 2009: “Instead of an overwhelming fiscal stimulus, what is emerging is too small, too wasteful and too ill-focused.”

It is the element of waste and spending without focus that especially annoyed the American public, long before there was any reason to think that the stimulus would not work. For Congress to have a blank check in the amount of almost $800 billion was leadership naivety at best, and malpractice at worst. In reality, the wasteful and thoughtless spending had to dilute the impact of the billions poured into the economy.

Too much of the stimulus went to bolster state payrolls and expenses while creating no job growth in the private sector, or to fund projects, many bordering on the absurd, with very limited impact. The public has long lost all faith in those responsible. We need growth, rather than social policies that redistribute wealth. Businesses with failed strategies and their leaders pay a heavy price. So too should political leaders in Congress and the executive branch.

An example of federal ineffectiveness is cited by Tom Coburn, Senator from Oklahoma:

$1.5 million in stimulus money went to Perkins, Oklahoma, for a $5 million new wastewater treatment plant. Coburn said the money came with strings that will increase the costs. With a new total cost of $7.2 million, the city will be forced to borrow money and, as a result, utility taxes have increased by 60 percent this year.

There is a great deal that business people can learn from the missteps in the public sector. Good intentions do not guarantee good results. Assumptions have to be right. Plans have to be well-thought out and tested. In the end, execution is crucial to success. And don’t expect a second chance when big strategy fails.