That's the Socialist Calculation problem point, which is the primary problem.

Another problem is that the new money acts like old money at first and distorts prices as it works through the economy. That's the Cantillon Effects issue.

Then there's the one that even a mainstream economist will get: whatever they are spending money on is being subsidized and that's going to generate a deadweight loss as producers try to supply more than people really want.

Undisciplined

econ

Does Government Spending and Money Expansion Create New Wealth or Destroy It?

Since governments are historically terribly inefficient capital allocators I would say gov spending and money expansion are a net drag on wealth creation. 