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125 sats \ 0 replies \ @Undisciplined OP 22 Jan \ parent \ on: Does Government Spending and Money Expansion Create New Wealth or Destroy It? econ
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.