ARPA-net, like velcro, was not created for the public. It was created to maintain communications between the military in case our communications were attacked. It had an incidental civilian application which has proven to be very valuable.
Newt doesn’t speak of things like ARPA-net. Newt speaks of things like Solyndra.
Can you back that up with quotes? I'd note that until the 'Rats decided to turn them into social service programs with the Clinton-era expansion of the CRA, even Fannie, Freddie, and the FHA home loan program were all successful in their stated goals and did encourage economic activity.