I'm going to answer for /u/nhgicxbs, but if you (nhgicxbs) feel there's more to add, please do!

Care to provide some source on points 3, 4 and 5? I remember reading something here on reddit only a couple of weeks ago that contradicts #3.

There are different economic schools of thought. Libertarians generally believe that government spending is harmful, as government tends to be inefficient, corrupt, cronyist, violent (look up the price of one cruise missile), bureaucratic and generally wasteful. What most people don't realize, or think about (this applies to a lot of economists too) is that money pulled out of the private sphere will result in someone not buying that new heater, or that jacket they want, or they will have to save up for much longer to fund their business, or their hobby. You might see that new construction project, but you don't see those millions not creating wealth for the people. Also consider that you don't spend other peoples money the same way you spend your own.

Points 4 and 5 only need to be thought through to be understood. Dealing with red tape, bureaucracy, licencing rackets and so on takes time, manpower and money. That's manpower, money and time that could have been productively spent. One the other side, the bureaucracy that's responsible for this waste is a waste in of itself, filled with people who contribute to waste and inefficiency instead of productivity. There's a reason they must be funded through extortion.

To answer 5, I will copy a segment of economics in one lesson:

Testifying on behalf of the United States Department of Justice before the Temporary National Economic Committee (better known as the TNEC) in March, 1941, Corwin Edwards cited innumerable examples of such practices.

The electrical union in New York City was charged with refusal to install electrical equipment made outside of New York State unless the equipment was disassembled and reassembled at the job site. In Houston, Texas, master plumbers and the plumbing union agreed that piping prefabricated for installation would be installed by the union only if the thread were cut off one end of the pipe and new thread were cut at the job site.

Various locals of the painters’ union imposed restrictions on the use of spray guns, restrictions in many cases designed merely to make work by requiring the slower process of applying paint with a brush. A local of the teamsters’ union required that every truck entering the New York metropolitan area have a local driver in addition to the driver already employed. In various cities the electrical union required that if any temporary light or power was to be used on a construction job there must be a full-time maintenance electrician, who should not be permitted to do any electrical construction work.

This rule, according to Mr. Edwards, “often involves the hiring of a man who spends his day reading or playing solitaire and does nothing except throw a switch at the beginning and end of the day.” One could go on to cite such make-work practices in many other fields. In the railroad industry, the unions insist that firemen be employed on types of locomotives that do not need them. In the theaters unions insist on the use of scene shifters even in plays in which no scenery is used. The musicians’ union requires so-called “stand-in” musicians or even whole orchestras to be employed in many cases where only phonograph records are needed.

Do you not see the waste in make-work rules?