Speaking to talkSPORT's Drive Time show yesterday, the former England international winger was adamant that more investment is needed in order to close the gap on the leading sides in the Premier League.
Reds boss Kenny Dalglish has spent close to £115million on reinforcing his squad on Merseyside since returning to the Anfield helm early in 2011.
However, Barnes has called for Liverpool owners Fenway Sports Group, lead by John W.Henry to pump more money into the project in order to re-establish the club as a powerhouse both domestically and in Europe.
"Liverpool need better quality players, not squad players," he said. "While they expected that to be [Andy] Carroll, [Jordan] Henderson, [Charlie] Adam and [Jose] Enrique, they need three players who are true first team players.
"Those new players should not be rotated, they should be the main players. Liverpool need more creative players because if [Luis] Suarez doesn't score and [Steven] Gerrard doesn't drive forward and score goals, [they struggle].
"They need more attacking players, someone with a bit of flair in midfield and another goalscorer, a real centre forward."
Barnes made no secret of his belief that Liverpool are too reliant on certain individuals within the squad, and wants the burden to be taken off the likes of Steven Gerrard and Luis Suarez.
"When you look at the top five sides, Man United, Man City, Arsenal, Chelsea and Tottenham I don't think Liverpool have a better squad than them," he continued.
"We've relied on Steven Gerrard and Fernando Torres in the past, now it appears we're relying on Steven Gerrard and Luis Suarez.
"Hopefully with Andy Carroll, Stewart Downing, Charlie Adam and Jose Enrique they can show the form from last year which made Liverpool sign them in the first place. Let's wait for another season before we make judgements of them."