I think it's less about the idea that they're willing to spend money and more about who they're willing to consider spending money on. If you're a mid-20s, elite player (Soto, Yamamoto), they're willing to "overpay" in terms of their determined market value (though obviously not enough to actually win). But it's not like they decide we're willing to spend $XM on contracts this offseason.
They have a certain risk aversion with money where they're basically willing to throw money away if it's not going to hurt beyond a couple years. Like they'd rather pay $20M for a $10M player than $30M for a $20M player if the former is only for a couple years and the latter is 5+. The problem, of course, is that you get what you pay for, and you're not really getting better value, you're just protecting yourself from catastrophe, but if they had better pro scouting, that wouldn't be as much of an issue.