Our wage budget is a fraction of that of the Mancs.
LFC make 50% of what MUFC do on a matchday. This was part of the problem the owners had with Rick Parry's record.
Compare it to that of Ferguson's first five years when he was blowing cash like there was no tomorrow and getting very little in the way of results.
Not really true. Ferguson's first full season he only signed Viv Anderson(£250k) and McClair (£850k) and finished second - hardly 'very little in the way of results.'
The transfer splurge, when it happened, was 1989/90 (Pallister, Wallace, Ince, Phelan, Webb), the season of the first cup win and the beginning of the end for Liverpool's domination.
When he eventually won the title in 1993 the team was hardly full of expensive signings (Schmeichel £650k, Irwin £850k, Bruce £850k, Sharpe £80k, Kanchelskis, Cantona £1.2m etc.) In fact IIRC it was more cheaply assembled than the Liverpool team of the time. And of course in subsequent years there was a net receipt in transfer monies as Hughes (£2m), Ince (£8m) and Kanchelskis (£5m) were all sold and replaced internally.
Of course one thing Ferguson has never done is sign a forward for £20m and then sell him six months later for 75% of the price. Whatever the reason is for this was, whether it be Parry or Benitez, it is probably also the reason Liverpool are not acheiving.