Well, in fairness to Glaurung, your analogy isn't quite right... it's not a
"new" house that he can't afford anymore... the rich people have effectively
driven up the prices of existing houses in the neighborhood (literally same
mobs got tougher, not new mobs that are tougher) so the thing that Glaurung
could afford to buy a few months ago is now out of his price range, (aka
inflation) so yes he has in fact gotten poorer/weaker because of the other
people's power
That being said, i have no major opinion on the matter, i just felt the
analogy was innaccurate.