This paper uses one recent significant document of State Educational policy in Ireland to explore the ideological underpinnings of a wider phenomenon known as the knowledge economy (and here also the smart economy). This paper situates Irish policy within the ideological milieu of the knowledge economy, drawing on a body of education research literature that shows how policy may be shaped by ideology. The knowledge economy is mapped in broad terms via its language to educational theorists such as Foucault and Althusser. From them we may trace its power (or knowledge-power) and its wide spread, such as via policy borrowing. Lastly the role of money and spending in knowledge economy policy making is examined and reasons offered why non-monetary solutions are not proffered by policy makers.