From an economic POV, I should be outraged that I'm continuously paying money for services that states that consistently run significant net-negatives (e.g. Alabama). I'm fine with that[1] - it's a component of the nation-state, and it provides allows states like Alabama can to keep their highways operational and their schools funded. I accept this as being a member of a modern nation-state so that my fellow countrymen with less opportunities can have a shot at a better life.
There are some institutions like the Corporation for Public Broadcasting that take tax dollars so I can watch the PBS Newshour, even though it doesn't generate revenue. I am a-okay with the National Endowment of Arts because it produces 'culture', which we'd both agree creates value, despite us not being able to put that numerical value into a spreadsheet.
I'm not a German national but I spent a few months in Berlin. It started out as a stint for CCC (back when it was in Berlin not Munich) and I extended my stay because I met some incredible locals. I'm quite fortunate to have traveled extensively enough for work and pleasure to be jaded. You travel enough and you end up meeting the same types of people doing the same things with minor (but very extensive and often very subtle, primarily cultural) differences. Some guy you did a 3 week stint for in in Joburg will have the exact same mannerisms as someone Nicaraguan you end up having a chat with at the airport bar waiting for your flight out of JFK. I say all this as a preface to establish this: I'm not really very much impressed by the novelty of this city versus that city.
However, Berlin is one of the few cities that provided a certain unique je ne sais quoi ('feel'? 'ambiance'?) to it, that I'd imagine must have been similar to being in Vienna during the 1920s for philosophy, Greenwich Village NYC for folk-music in the 1960s, or Silicon Valley during the hay-day of NatSemi. Not just in tech, mind you, but take the local music scene there, absolutely spectacular, as is the broader category of arts. The city just overtakes you if you let it, and makes you want to create.
Why do you think the population is increasing? I couldn't say for certain but I'd argue it's because others feel similarly. I'm not sure what ingredients or at which proportions to make that specific cocktail, but I'd argue when you have it, it's worth a few extra greenbacks, pounds or Euro to sustain it.
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[1] Other than the large percentage which goes to fund the everlasting 'war on terror' and all of the beneficiaries of the military-industrial complex. Let me ask you, if there's a 'war on terror' or a 'war on drugs', Who do I sue for peace if I want to surrender and start negotiating resolution terms? How do you win a war against a concept?</rant>