solbergb wrote:So the reason it is profitable to loot Verge, OFS protectorate or the usual DuQuesne plan Haven targets is that even if you are being completely destructive long term, nearly anything productive can be harvested in the short term.
The corporate raider strategy in our world shifted from selling of physical assets in the 80s for a quick buck to actually leaving the company intact, but running up huge loans and using proceeds to pay huge dividends to investors, bonuses to executives and fees to the management consultants. Some of the companies limped along after it was over, others went bankrupt, causing the liquidation of assets to occur at fire sale prices...but by then the raider has already made their bundle and are long gone.
Why the banks are willing to loan money to companies managed that way is beyond me, but they are. Perhaps because they're too big to fail. *shrug*
If you are OFS, what you do is loot a planet that way. You may not have fat bank loans to work with, but you can tax and fee everything just to the breaking point and it won't kill the economy for a while. You can also move in transtellars and have them kill off local competition and buy up assets cheap, then resell them on the galactic economy for large profits, while pocketing gifts of stock or dividends from that company. (dividends, as in our world, are safer, as the stock can tank later without harm to the greedy, either from a looted company or from a transteller getting bad press/pushback.)
When the economy eventually collapses, grant "freedom" or "shell membership" to the planet and move on to the next one. The planet is left to dig itself out of the hole. OFS clearly waits until a planet is "ripe", at a certain level of economic activity before it pounces.
You forgot the other revenue stream.
The British Empire limited the types of imports in it's colonies to keep them reliant on products from England. English finished goods were the only products available in markets around the world, goods of the industrial revolution, they could undercut the price of local goods. Industrial machine goods were usually forbidden in order to avoid local industrialization and competition with English factories.
When 3 billion people can only purchase goods at Sprallmart, that is a huge revenue stream.