Blackstone Code
Chapter 939

Actually

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Why attract investment?

Actually, the logic behind attracting investment was very simple: use other people's money to create tax revenue for the local government and provide jobs for local residents. As for the profits the companies themselves earned, that was another matter.

The operation of an economic society did not mean that it was necessarily good for everyone to have money. Money had to circulate.

When a company made money, it paid part of it in taxes and distributed part of it as wages. That was one form of circulation.

Taxes promoted the city's development and construction, while wages gave residents security in their daily lives. That money would then flow into other parts of the social economy.

People did not create money, nor did they hoard large amounts of it. They were merely carriers of money. That was an idealized economic structure.

Wealth fully played its proper role at every stage, and every stage benefited from the flow of wealth.

To make these foreigners leave their wealth in the Federation, create tax revenue for the Federation, and provide employment opportunities for its residents, they had to be persuaded. That was the purpose of attracting investment.

However, the Federation had a "criminal record." More than one multinational company like Henghui had fallen in the Federation's various investigations.

To do business successfully in the Federation, one needed one's own representative of interests.

No one would speak for another person for no reason. It was even less likely that they would serve someone simply because that person provided so many jobs or paid so much in taxes. He had to funnel benefits to them before anyone would speak for him.

Once benefits were funneled, it became an abuse of office.

Perhaps those companies had happened to fall amid political infighting. It was

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