I don't agree with them, but i haven't seen the argument being pro scarcity. To steelman it, the argument is that without these protections the incentive to create is lower so we actually will have more scarcity
Without the ability to use asbestos, the incentive to build houses is lower, so we actually will have less houses.
Without the ability to use asbestos, the incentive to build houses is lower, so we actually will have less houses.