There is a discussion upstream in the comments in which is was noted that some cloth flowers would not be returned, and that the rest would become worn and soiled, so that real flowers might prove less costly.
@MrKeo You know drowning (or any kind of asphyxiation) causes brain damage, so it's very likely that you've seen victims of it before. Lot of harem MCs get dumber as their series continues, it's possible they've been drowning behind the scenes....
@Oeconomist That's just one broadsheet, and the paper seems a little rough, thick too. There are a few materials that could be turned into a similar paper, without the use of any machines (or magic), printing press seems likely to exist, but I still don't think clothing is being recycled into paper yet, unless they use a chemical method. I suppose they could be dipping discarded clothes in dragon spit, or something, to make those broadsheets cheaply....
Real flowers cost money and/or people have to be sent to gather them (the goal is to keep the at-risk people indoors, recall). Flowers from old clothes only cost labor.
The printing press wasn't introduced, and wouldn't have made much sense, until after the introduction of paper-making. And wind or water power driven mills can be used to pulverize rags.
No one suggested that real flowers were free. and the brothel surely has to have various things acquired from outside to it as it is. Food, candles or lamp oil, soap, and textiles are unlikely to appear magically. The old clothing is in finite supply unless new clothing is continually acquired, and the old clothing is not put to one use without being lost to others, which uses have been discussed. (CountryMage and I were drawn into a discussion of paper for that reason.)
@CountryMage They may even have something like hemp that is easily turned into many things including paper. If there marijuana didn't exist or no one cared for it then it could be viable. I don't really see the point in arguing an alternate world where our logic doesn't really apply too much. Heck, their skill system could allow people to develope technology which far surpasses current stuff if their skill was high enough
CountryMage and I were discussing the highly dubious notion that the old clothing had no value other than in making of these fake flowers. He and I agreed that there were various other uses for old clothing (which other use implies that using old clothing for the fake flowers were not costless). We were disagreeing about whether paper-making would be amongst those uses in this society.
To the extent that the writer just pulls rabbits out of hats, the story will be uninteresting. Otherwise, it will make some sense to question whether the hero is making the best use of resources.