>By raising real estate prices, it stimulates the construction business, which is labor intensive and has a long supply chain. It benefits the entire economy of

>By raising real estate prices, it stimulates the construction business, which is labor intensive and has a long supply chain. It benefits the entire economy of the country. Maybe, but only if the increase in wages paid keeps up with the rising rents. And remember that in unregulated capitalism, most of the income from increased economic activity is captured by the wealthiest tiers, with only negligible increases for the vast majority. The rising tide indeed raises all boats, but it raises some boats far more than most. If rent rises 10% but median wages rise only 2%, most people will be losing ground, not gaining.