NOVEL NEXT Chapter 708 Summary Report
Chapter 708 Summary Report
December 15, 5 AE (After Empire)
It has now been five years since the formation of the empire, and it has finally entered a phase of stability. No major obstacles threaten the empire, aside from the inevitable minor issues that arise. However, even these small problems are kept to a minimum and are swiftly addressed whenever they occur.
With all citizens now relocated to fortress cities, satellite cities, nearby villages, and even the rebuilt former cities upgraded to fortress city standards, the empire could confidently claim it had completely eradicated homelessness.
Due to the large number of newly built cities combined with the refurbished older cities, the empire was experiencing an overflow of unoccupied houses under its administration. In a fully capitalistic system, this surplus would have led to a significant drop in property values, as supply far exceeded demand.
However, the empire was not a fully capitalistic or free-market society. While the free market was allowed to operate in areas like business, the government maintained strict control over sectors deemed essential for survival, as outlined in the constitution. This approach ensured that necessities such as housing, healthcare, and food were accessible to all citizens, preventing the exploitation of basic needs by market forces.
As a result, the millions of still-empty houses were not subject to devaluation. Instead, the empire set their prices based on factors such as size and location, but these prices remained stable, only adjusted for inflation. This ensured that even future generations wouldn’t have to worry about the cost of owning a home, providing long-term housing security for all citizens, including children born generations later.
Although the prices were regularly adjusted for inflation, more than four years had passed since the Fortress City project began, and none of the houses had seen any price increases. This was due to the empire’s meticulous efforts to prevent both inflation and deflation.
Economists had initially argued that such a policy might stagnate the economy, fearing that the lack of natural economic fluctuation could lead to stagnation. However, this concern was avoided as the empire found itself in a period of rapid expansion. New industries were being established every few months or years, driving the economy in the opposite direction of stagnation, resulting in an economic boom.
The same standards were applied to all necessities for the citizens, except for food. While the empire refrained from direct interference in the food market, the emperor took a personal hand in ensuring its stability and accessibility.
This began with the creation of a new company under the umbrella of Connect Enterprises, named Demeter Agriculture. Despite its name suggesting a focus on farming crops, Demeter Agriculture’s sole purpose was to purchase crops from farmers and sell them to buyers.
The company was currently buying products from almost anyone in the food production industry at premium prices, ensuring that farmers received decent profits. Demeter Agriculture then acted as an intermediary, selling these products to companies that needed them for manufacturing or directly to citizens at very affordable prices.
During its first year, when people calculated the buying prices from farmers and the selling prices to companies, it became clear that the empire was selling the products for half or even less than what they paid to the farmers. This led many to believe that the emperor was using Demeter Agriculture to lower food prices and support the agriculture industry, intentionally absorbing the losses to benefit both farmers and consumers.
But they couldn’t have been more wrong. Demeter Agriculture bought everything from farmers, including produce that might not have met customer cosmetic standards. The company also acquired even low-quality items that would otherwise have been discarded at their production price.
Upon receiving the crops, they were sent to what the public assumed were “sorting facilities”—in reality, these were massive atomic printers. The printers repaired any damage to the produce, enhanced the fruits, and made everything look aesthetically pleasing. This process transformed even the discarded batches into high-quality products.
As a result, Demeter Agriculture was able to turn a profit while indirectly controlling prices across the agricultural sector. With a near-monopoly on agricultural produce, the company could sell to anyone in need, creating a competitive market with thousands of companies vying for trade. This competition helped keep prices low, with the Trade Commission monitoring the market to prevent harmful monopolies.
Although Demeter Agriculture operated as a de facto monopoly, it had not violated any laws that would attract the Trade Commission’s scrutiny. Their monopoly status was achieved purely through offering better deals and lower prices than competitors, without engaging in practices that would warrant regulatory action. The company did not employ exclusive supply agreements, predatory pricing, or refuse to deal with competitors. Instead, it allowed other businesses to operate freely within the market.
The Trade Commission kept a close watch on Demeter Agriculture, ready to act if the company attempted to undermine competition or engage in anticompetitive practices. Unless the emperor directly intervened, the commission had the authority to address any violations and ensure fair market conditions.
The same principle applied to all of his companies. Fortunately, the emperor didn't need to resort to underhanded tactics, as he was always several steps ahead of any potential competitors in each industry.
“At some level, money now is really just like agreeing to accept children's currencies,” Aron remarked as he reviewed the yearly report for his companies, noting the staggering profits they were generating.
Despite spending hundreds of billions on the House of Hope and the Coeus Foundation, it seemed like a mere drop compared to his earnings.
{True, it is almost valueless since you can have everything you want without it anyway}, Nova agreed. At this point, anything he desired required something beyond money—System Points (SP).
“But that is only in the eyes of someone in my position; for everyone else, it’s everything,” Aron said, reflecting on his past. He remembered his time as a student, about a decade ago, when he was on the brink of graduation with a massive student debt hanging over him.
{However, that might change depending on how our faceoff with them unfolds,} Nova said, hinting at the upcoming event. She was referring to the approaching body now in its final phase of deceleration, soon to come to a complete stop.
“Let’s hope it’s something beneficial for us and not just a stone cast into a now calm lake,” Aron said. While he was excited about the prospect of something unexpected, he hoped it wouldn’t disrupt the peace and stability his citizens had come to enjoy. Their expectations and hopes were different from his own, and he wanted to ensure their well-being was maintained.