It does sound like a great plan.
But on the federal level, you have to look at it from the politicians viewpoint (okay you don't but do it anyway).
They want, no they NEED to get re-elected, and the only way they will is to make sure their campaign contributors get those "one dollar bills" thrown in their direction.
And how else will they convince the voters that they "care" about them, if they don't waste, er, spend, millions on wasteful projects?
Until we elect people willing to do the right thing, and not the popular thing, and until we are willing to do thins every two years, we will continue to have a serious spending problem.