If people get money (wages, whatever) they just eat it directly. They don't pass it on to someone else, who then passes it on to someone else, etc...
Related: there are no gains from trade, individually or between countries.
If the government spends money, it's just fake somehow. All economic activity related to the government is an illusion, except SpaceX and Tesla subsidies.
It takes a few weeks, couple months tops, to set up a "factory."