building something novel and cool is arguably a better use of it than just spending it on luxury goods.

Actually the opposite.

Taking up contractors time on this stuff means less making affordable housing which makes housing less affordable for everyone else.

In general.its happening to our entire economies. Only the wealthiest can afford things, so man hours and resources go into a small amount of luxury products rather than what the masses need.

Raising the prices at all.price points.

This is worse than normal.lixuryngoods, because it doesn't matter what jewelers spend their time on, we all need housing. And that's not even getting into the larger the single price tag the bigger the problem.

Like, there's a whole bunch of reasons this is horrible, even if I'm not explaining them all at once.