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On the plus side, the average cost of food, rent, and services might drop

"If we crash the economy, everyone will lose their jobs and be poor!"

"On the plus side, the average cost of food, rent, and services might drop"

"If you stop feeding Moloch with kids, the world will end!"

But it's not clear where there's a Moloch situation here? The benefits of agglomeration is basically economics 101.