Not quite. Cisco will probably take this purchase as a signal to produce more unnecessarily large routers. Those people paid to make the unnecessary routers could have used their valuable skills elsewhere. They may convince more people to learn how to build unnecessary routers instead of something more valuable. It's waste all the way down.
Not exactly, unless you think those people will literally use their salaries from the activities you described to buy something and go out and burn it. It might be a mis-distribution, and it might spur misguided investment in an area, but it isn't all squandered to the tune of exactly $20,000 or anywhere close to that. The marginal cost is a much more accurate measure.
