Look, Greg, the solution is simple. Nobody forces those humans to reproduce. In fact, they shouldn't reproduce until they can afford the costs of raising a child.
But if they do, it's utterly immoral to expect the rest of the population of the planet to raise their offspring. It's the same old song, "from each according to his ability to each according to his need". Utopians which beleive that humans are blank slates and hence they can be social engineered into anything.
Second, raising to status is part of the human nature. Much of the so called "displays of status" are realized through non-essential items and services. Expensive art pieces, expensive cars, expensive designer clothes, whatever you got it.
Spending on such apparently "non-essential" items fills a very specific niche in humans. They are far from being "non-essential". They are powerful signals which most definitely have a role in the polarization and hierarchic stratification of society. They have far reaching implications, which go as far as access to (more) mates. They are intrinsic part of the human psychology and neurobiology.