>There is still $5K more _economic_ value created, in that +$5K went to people who might otherwise be jobless. They'll in turn spend that money at businesses in the private sector, reaching more people, and so on. If the man with the septic tank runs a coffee shop, he will see extra value from more coffee sales.

That's the grade school analysis and in reality we are all poorer for it.

If ten people pay $5k to avoid getting a substandard service that has a 1/10 chance of happening and will cost $20k to remediate if it does that is a massive loss to the overall economy because that money otherwise would've been spent elsewhere else.

This isn't just septics, it's every widget and service. And it's not just a government and tax problem (though those cases are frequently most flagrant). Private industry requirements cause the same problems.