We have screws that cost hundreds of dollars that our government pays for. The super expensive toilet seats and hammers...
Still someone's job it is to build those. Is that one overpaid? Likely. Are Managers and football players overpaid? Sure!
The problems you describe happen when private rewards get doled out because not enough people are involved to make good policy the less costly solution.
"Saving" does not change that, because savings never happen t those private rewards.
A dictator always pays the army first is probably easier to understand ;)