This is correct, AND not only does the government print new money, it decides who to give it to.

In the US, the government almost exclusively gives this money to banks and financiers to invest for their own profit, especially inflating the prices of stocks, bonds and real estate. All this free money going into these specific markets causes house prices and stock market valuations to continuously increase, but no one calls it ‘house price inflation’ or ‘stock price inflation’, they call it ‘a good economy’ because otherwise it would give the game away. The increase in asset prices relative to wages and the price of goods (which still increase more slowly) means workers end up paying a larger and larger portion of their wages to land-owning financial capitalists. They then have less to spend on actual goods, putting pressure on manufacturers who end up with a smaller market. It becomes more and more difficult to turn a profit by hiring people to actually make things, so the economy becomes deindustrialized.

Alternatively, government could use the money to hire more employees or purchase goods and services, which would cause the inflation of wages and goods relative to assets and cause the formation of an industrial economy. But that would challenge and eventually overturn the control of the economy by financial capital, so it can never be allowed to happen.