Blackstone Code Chapter 82

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Chapter 82: Culture is an Invisible Blade

When the economy regressed, people's purchasing power became a joke. After a decrease in income, there was no strict sense of "consumption"; instead, it became a necessity to make ends meet. However, not everything during an economic downturn followed the downward trend of economic indicators. For example, birth rates and abortion rates may not decline similarly.

After an economic downturn, opportunities for entertainment became scarcer. Due to prolonged unemployment, certain needs would intensify amid restlessness. Consequently, a wave of newborns would become part of this scenario, continuously impacting already unstable families. Some families, originally planning to have children, may choose to abort due to economic difficulties.

The baby boom and abortion rates were not contradictory, adding an interesting dimension to the situation. Crime rates would also noticeably increase as many individuals, pressured by life, resorted to illegal activities to meet basic needs. Some may even willingly commit crimes to secure free meals in prison.

In this stressful and anxious environment, society would experience a pathological condition, and wealth would rapidly flow from the lower strata to the upper echelons. Ordinary people lacked channels for fair exchange through labor, and their money was gradually drained during the struggle to sustain life. This money ended up in the hands of capitalists, leading to the emergence of anti-wealth sentiments in society.

During economic recessions and societal downturns, it was a time for capitalists to revel. However, certain industries quietly thrived, and their growth was closely related to the societal landscape.

Discount stores, retail, and some wholesale markets became highly sought after. People must plan their consumption meticulously, including the middle class, who could no longer indulge in the pleasures of wealth as freely as before.

This became one of the few opportunities for the middle class to connect with the lower strata. They would stop driving because fuel cost money; instead, they would carry shopping baskets like many ordinary people, scrutinizing every detail.

Industries related to agriculture also experienced a certain degree of growth. Many households began cultivating edible crops near their residences to supplement their needs. If not for restrictions on keeping livestock and poultry in urban areas, these people might even raise cows.

Among numerous foundation investment projects, funds flowing into agriculture and animal husbandry increased significantly. Investment banks and funds were particularly sensitive to market changes, and their allocation in agriculture and animal husbandry investments reflected future economic trends.

If there was an anticipated economic development in the future, funds would be invested in appropriate industries or financial sectors. However, a significant shift towards large-scale investment in agriculture and animal husbandry, at the expense of other investments, signaled an approaching economic winter. Many tended to overlook this issue.

Tobacco, alcohol, and the entertainment industry also experienced rapid and vigorous growth. Cigarettes and alcohol provided temporary relief from worries, while the entertainment industry allowed people to momentarily forget life's hardships. If the price of this happiness wasn't too high, people would allocate some money to purchase it.

With an upcoming storm that would break down the already semi-solidified walls of the Baylor Federation's capitalist ruling class, some artificially created barriers and walls would shatter. Less noticeable industries would become easier to enter.

Of course, in addition to these factors, the second-hand market would experience an unprecedented boom. This was why Lynch wanted to establish a new company, covering the entire state, dedicated to the trading and auctioning of second-hand goods.

He had the right timing and conditions. This time, he planned to make a substantial profit. If nothing unexpected happened, after this storm passed, a business genius would rise here.

However, discussing these matters now seemed somewhat redundant. Lynch briefly explained to Mr. Fox and his son, touching on the entertainment industry's alternative revenue stream.

"The entertainment industry, particularly entertainment related to culture, profits from two main sources. Firstly, normal operational income..." Lynch raised a finger, "I believe you can understand and comprehend that."

Mr. Fox and his son nodded. Operational income, like making films and selling tickets, represented the operational earnings.

Lynch then raised a second finger and continued, "The second part comes from subsidies provided by the federal government..."

Mr. Fox and his son exchanged a glance. Lynch's explanation truly sparked their interest. From fearing the federal government to considering taking a piece of their pie, they, who were recently involved in potentially illegal activities, suddenly felt a surge of excitement.

However, they wondered if the federal government's meal was really delicious.

"Society is about to become restless. A large number of unemployed individuals will become an instability factor in every city. Coupled with the federal government's self-reliance stance, which has already triggered some issues in the international community, alleviating social pressure, appeasing public sentiment, and seeking common ground in the international community have become crucial tasks for the federal government's next phase."

Lynch paused at this point and suddenly asked, "Mr. Fox, if you met a foreigner, under what circumstances would you, in the shortest time possible, accept the foreigner and become friends with them?"

Mr. Fox thought for a moment and said, "If we can communicate in the same language, if he knows about some things I talk about and I know about some things he talks about, if we have common topics or even shared hobbies, we would quickly become friends."

Lynch pointed at him, "Exactly. Cultural commonality. We rarely have the time to sit down and earnestly read a foreign book, even if it's a world-class classic."

"But we can genuinely and carefully watch a foreign film, even contemplating the things behind the film. That's what makes films special."

"The entertainment industry can not only help the upper class appease the dissatisfaction of the lower class regarding societal structures and reduce friction and conflicts between different classes but can also export more commonality and recognition internationally. Doing these things not only allows for legitimate profit and federal government subsidies but also eliminates concerns about retaliation from certain interest groups. This is an industry with a future."

Lynch said a lot, and Mr. Fox was very intrigued. Fox Junior was also fascinated. He studied management, not sociology or financial economics, so he didn't understand these things. However, he felt that what Lynch said made sense.

He looked at Mr. Fox, as if wanting to confirm his father's attitude. Mr. Fox then asked a very direct question, "Lynch, my friend. If we follow your advice and invest in the entertainment industry, would you join us as a shareholder?"

In Mr. Fox's view, if the entertainment industry could really make money, Lynch wouldn't miss this opportunity.

After spending this time together, he had a clear and profound understanding of Lynch. Lynch was a pure businessman. All his actions were aimed at seeking maximum profit, including helping him transition from illegal to legal, laundering the money. These were the efforts Lynch made to bite into his flesh, but Mr. Fox didn't dislike this calculation, or rather, didn't dislike Lynch's methods.

If there were more people like Lynch, who could continuously multiply his assets, that would be even better.

The entertainment industry was an industry he wasn't very familiar with. If Lynch truly believed that this industry was suitable for entry, then he should invest.

As if Lynch had long seen through Mr. Fox's thoughts, he shrugged, "Why not?"


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