Why would overall production drop when there is more capital in the market? Maybe read up a bit on fiscal multipliers. Government spending (redistribution) is

Why would overall production drop when there is more capital in the market? Maybe read up a bit on fiscal multipliers. Government spending (redistribution) is one of the better ones. https://en.wikipedia.org/wiki/Fiscal_multiplier https://en.wikipedia.org/wiki/Fiscal_multiplier