The government decides who is owed what material goods. This is known as property rights. The destruction in this case would be equivalent to transferring the ownership of some factories to the government, exchanging those factories for something flammable on the open market and then setting fire to said flammable things. It's obviously wasteful, but definitely possible, and it won't directly and measurably impact anyone's quality of life. Investor confidence in your country will nosedive, though.