I would argue that the fact that they are using only for themselves an amount of labor and resources that would normally serve a large number of people due to the sheer extravagance of their needs increases costs for everyone else by increasing scarcity.
To be fair, if they really were just living lavishly and not using their wealth to amass more wealth like some kind of wealth black hole, then the extreme expenditure of such a lifestyle would one day drain their money dry, since they couldnt possibly actually earn enough to live like that. Were it not for the effect of wealth begetting more wealth, the issue you refer to would eventually solve itself.
This why we start taxing at 100% over a certain amount. They can keep living lavishly indefinitely while everyone else gets to benefit from putting money to actual use.
I would argue that the fact that they are using only for themselves an amount of labor and resources that would normally serve a large number of people due to the sheer extravagance of their needs increases costs for everyone else by increasing scarcity.
To be fair, if they really were just living lavishly and not using their wealth to amass more wealth like some kind of wealth black hole, then the extreme expenditure of such a lifestyle would one day drain their money dry, since they couldnt possibly actually earn enough to live like that. Were it not for the effect of wealth begetting more wealth, the issue you refer to would eventually solve itself.
This why we start taxing at 100% over a certain amount. They can keep living lavishly indefinitely while everyone else gets to benefit from putting money to actual use.