It is "stupid" only to the extent that it doesn't take into account the socio-economic and political realities.
It appears the government tries to make the plan acceptable by giving to everybody, rich and poor, the same nominal amount of money. So it seems this is not "in favor of the poor against the rich" so why would the rich people react against it?
Well, because their purchasing power will get a massive hit, and poor or rich, I haven't encountered many people that will take that lightly.
Under the implied assumption that the economy is at full capacity (an assumption that is needed so that the full effect of the increase in the money supply to be reflected in inflation, otherwise this will not be the case), total output will be the same but the price level will indeed double. Setting the price level before the transfers at $P=1$, we have :
FOR each POOR person
The real value of money holdings (i.e. in units of goods) was $11.11$ and now it will be
$$(11.11 + 20.00) /2 = 15.555 > 11.11$$
an increase of $40$% in real purchasing power. This means that each poor person will be able to consume $40$% actual units of goods more than before.
FOR each RICH person
The real value of money holdings (i.e. in units of goods) was $100$ and now it will be
$$(100 + 20.00) /2 = 60 < 100$$
a decrease of $40$% in purchasing power. This means that each rich person will be able to consume $40$% fewer units of goods than before.
Do you imagine the rich will stay quiet faced with such large decline in their living standards?
This does not mean that historically governments have not used increases in the money supply to hand out transfers to the poorer segments of the population. They have, but it wasn't implemented in such a "grand redistribution scheme" style, and it wasn't so widespread that it would seriously affect the purchasing power of the rest.