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> It's not really a concern so long as they are engaged in nonzero economic activity, in which case no money is permanently trapped within the vehicle.

On the contrary, unspent money has no impact on the real economy. If money is permanently trapped in some bank account somewhere, it simply serves to mildly reduce inflation.

If the organisation spends it's money, and it's allocation of money is "bad", then it has a negative impact to the real economy.

Those employees could be working on something else productive, those goods and services could be applied to some other useful task.



> It certainly can be channeled into inefficient or unproductive economic activity (and often is), but the system ultimately keeps moving.




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