Baz, Benitez's other choice, was to go out and find youngsters who could come through, and very very cheap deals on great players, both are possible, he's done neither.
Thing is, Chelsea, Real, Barca, Arsenal, Utd, City, both Milans and every other top club in the world DOES have youth players come through, and all those clubs get in good value players also. Ireland, Fabregas, Song(if you rate him), Sturridge, Terry, Neville, Giggs, Scholes, Macheda, VDS was a GREAT value buy, Owen was a free for Utd, Valencia wasn't half bad value at all, infact far better value than anything Benitez has managed in terms of wingers.
Johnson was NOT good value, Mascherano was not cheap, neither was Torres, the only really cheap player I can think of thats been half decent was the greek defender this season, when the board finally said, no more, to Benitez.
There is NO club on the planet that can spend 20million on every single squad member, every top club relies on a mix of some expensive players, some existing, some youth, some great deals and even some loans.
People forget that these days players seem to get payments, like Barry thought he was entitled to, for leaving clubs when they haven't asked to leave.
Does anyone take into account the signing on bonus's, the "loyalty" payments when they leave? Because Benitez's tends to force players out rather than them ask to leave, what if thats 5 players a season, all getting 2-4mil payouts for being asked to leave, and all the 5 new players getting 2-4mil for joining?
HIgher turnover has a large effect on transfer budgets, it only doesn't have an effect, when it suits someones argument.
You also have the problem of youth vs bringing in established ok players, Lucas is probably on a decent amount more money than a Denilson or a Song, because a transfer tends to bump wages up a lot as theres competition for signatures, younger players at the same club for years tend to be on lower wages than someone brought in at a later date when you have to persaude them to sign for you rather than another club. Again that add's up to more money spent on wages and less for transfers.
I also can't imagine what the insurance they have to pay for players is, considering almost every Liverpool players house gets ripped off, insurance and security must cost Liverpool more than any other club by millions