If you live in a town with eight beds and ten people, and you just 'build more' your way into building another bed...

You're still going to have someone sleeping under a bridge, but now really smart people will raise their hand, and yell: "See? Building more was stupid, it didn't work."

And smarter people ask: "Hmm... It would be nice to know why ten people had to come to a town with 8 beds, while there's a town with 20 empty beds nearby"