The problem with that benchmark is twofold though. First, it implies that the system is both totally efficient and properly funded today. It isn't. That doesn't necessarily mean that we need to spend more money. But before we can have that discussion we must have the system setup properly in the first place. Unfortunately that kind of discussion can't be had with an axe hanging over people's heads.
The other major problem is that some of whats needed is infrastructure. You can't expect to have cash on hand to "just build a hospital" or "get a highway twinned" or whatever. If you did have the cash and spent it all on a huge project I would say that is nowhere near fiscally prudent. You're going to use the piece for decades, so why not finance it? (AKA borrow the money or go into debt....terrifying I know!)
Point is that the simplistic "spend what you have and no more" is not appropriate. It doesn't make sense in your house and doesn't make sense for our government. That doesn't mean that you have to make it rain.
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