So it's an excuse for not doing these things at all?
They are doing both the space program and doing something about living conditions. The problem is that fixing poverty is hard, and like the problem of travelling to the moon or Mars, you don't solve it merely by allocating a budget, that's only the start. If fixing poverty was easy, a lot of other countries wouldn't have any. Hell, perhaps the USA wouldn't have any. And fixing their poor living conditions probably costs a multiple of what it costs to run their space program. According to their 2013 budget, the Rural Development Ministry alone receives over 16 times the ISRA budget. My point is that I think it would be a big mistake to shift the +- 1 billion $ space budget to further rural development.
I'm trying to think of the name of the thin, extremely fragile layer of crust on undisturbed desert ground that environmental groups want to shut down land so people won't walk on it.
That's cryptobiotic soil, I think. Worth preserving, but I think we can stand to lose a few square miles of it in exchange for power for 100k+ homes. This isn't random people walking or driving over it for a moment and then leaving, this is permanently putting a piece of desert to useful work.
Our problem is we have a caste that calls themselves "lawmakers" and so all they want to do is make new laws.
Unsurprising, when you are ruled by lawyers. Poking around demographics on Congress, we find about 40% of members with a law degree (over 50% in the Senate). In contrast, only 2% of them are scientists or engineers...
If you want to put yourself on the map, publish your own map.