The "refuse to spend money" thing assumes the company has the money to spend at all. This is often just not the case in the current economic climate. Consider how many small businesses are hanging on by a thread and simply do not have the resources to commit to even the most desirable improvements. And before you say that is obviously the mark of poor management, consider that many times the choice is between going bankrupt by spending money to fix a looming problem that has not yet materialized or staying in business another three months. How is choosing the bankruptcy option beneficial to anyone?
Sure, spending the money on a clean system that is not loaded with kludges, bandaids, and binder twine is the correct choice for the long term, but you cannot get to the long term if you completely ignore short term needs.