Yes it does! few people would dissagree either.
I balked hard when I first learned about this "feature," but I'm at least halfway a sympathizer now. Well, maybe a little less than halfway, but close for sure.
Reasons I'm OK with the >20K treasury penalty: 1) Any human-style culture probably has limits on how much wealth elites can stash away before the producing classes create disorder. 2) Using your economic power actively can help keep you safe from the AIs. 3) It's a game; rules are like terrain on a cross-country run--you just have to deal or decide the game's not for you.
@Andrew Easterly: I started looking for ways to spend after I learned about this >20K thing, and since then I've never seriously lacked for useful-seeming places to put "excess" BC. Even if you don't have an economy that supports buying fancy warships outright, you can pour endless cash into social spending, ship upgrades, and foreign policy. When my income's around 300 BC and I've toppped the treasury, I can usually get by with looking for something to buy only every 4 to 8 turns.