That is quite right and works for buissnesses, sometimes. Buissnesses are part of the market and they have competition. Government is a hole other thing, Government can creat wealth too, matters differ on how often that happens.

Specially in the last 10 year (or longer) most government didn't seam to be much of investing there money smartly.

I think there's a big difference in investing money in things that will generate more money, and spending it on luxuries that will only depreciate in value. I expect the parent was referring to the latter not the former.