The author of the blog states,
Good-hearted policy makers would have decided that if you throw a lot of money into equipment -- independent of all other aspects that go into research and education -- surely research quality will improve!
It is not as if the policy makers are unaware that this alone will not work. It is just that this is the easiest. It is too difficult to overhaul the complete system or even think about this...just give money and hope things work out !