By your logic, it would be perfectly ok for the government to give each of us a billion dollars a year. Is this what you believe? If not, why not?
One of two things:
1: It sits in the bank, where it's lent out for investment
2: It's spent, possibly on something optional but still legitimately useful and non-frivolous, in which case it flows back out into the economy
I don't see a bad outcome..!
I'm probably just preaching to the choir, so you can have the last word if you want it.
The problem with your suggestion is that it would necessarily create runaway inflation, because there's no way to square that payout with government tax income.
You can have redistribution of wealth without runaway inflation, there are a number of existence proofs of this.