In reading my own post, I feel compelled to elaborate slightly on each of my points.
First, viewing the situation Dr. Forrester described as a positive feedback loop may seem counter-intuitive to some, since the actual output is the opposite of the intended output. Nevertheless, since an increase in the actual output (e.g., poor student success rates) directly brings about an increase in the input (e.g., more standardized testing, decreased school funding), a positive feedback loop is clearly in process.
From a psychological perspective, the situation could be said to result from a flawed mental model of the causal relationships inherent to the system. This speaks to Dr. Forrester's points about the disconnects between the overarching goal of a system and the "local goals" of the operating flows.