This is well known in the Austrian School. It's not that cheap money drives out good ideas, but it dilutes them, because cheap money allows bad ideas to persist - there is no Schumpeterian creative destruction.

The corollary is that average productivity declines, because inefficient zombie companies are still encouraged to walk the earth, which is exactly what we have seen since the GFC triggered money printing and artificially low interest rates. Of course, non-Austrian economists are perplexed, and create many spurious explanations, which is an ironic example of the ineffectiveness of (economic) research.

[The US legal system is a separate issue of rent seeking by an entrenched lobby, which creates and preserves laws and legal frameworks that reward litigation. US healthcare is another anomalous parasitic example. Other countries do not have these problems to the same extent, but they often have other types of rent seeking, bureaucracy, inefficiency and corruption to compensate.]