> A similar argument could be made about public spending on education, that it only creates inflation. But of course education is a great way to increase productivity

Uh yeah, but that doesn't make it a good thing. If the expense of education puts you into a debt hole that is so deep that it's impossible to make up for it with increased productivity, that is a net negative.

And what does this have to do with housing? Increased housing costs is like the exact opposite of increased productivity. Limiting supply of housing is a rent-seeking behavior.