Paper money, which used to be simply printed and is now even easier to produce at the push of a button, corrupts people because it creates dependencies. This is especially true when paper money, which is completely worthless in itself, is combined with other “achievements” of modern society, such as the unconditional basic income or other forms of subsidy.
Money that has no intrinsic value would normally not be accepted in return for work done. If, however, it is circulated almost indefinitely and is used to pay for goods and services, society will inevitably be divided into those who still live off their own labor and those who depend entirely on government handouts or rely entirely on them.
As long as the proportion of people dependent on the government is still manageable, the split that is slowly taking place will not become obvious so quickly. But if more and more people are supplied with freshly generated money instead of freshly generated food, society will also fall apart into its individual parts for everyone to see.
Much productive capital and human capital remains unused
In the end, there is usually a kind of class struggle in which the people who are dependent on the government and the central banks fight for their “rights” and those who have been working until now are increasingly asking themselves why they should put themselves through this stress at all when there is obviously another way.
At the social level, the individual countries are wasting a large part of their productive capital because this remains unused because many who could work do not have to or do not want to. We can assume that the greater their number, the greater the lost progress, since many of the inventions that we enjoy today arose out of sheer necessity or the need to act and work more effectively.
At the individual level, the damage is also significant. For those who still work, the question is always what for, while the government-provided people have to buy their alimentation with good behavior. At this point, at least a lot of freedom is left behind.