If you’ve ever watched Star Wars and wondered:
Doesn’t the Empire take a huge economic loss from the lost productivity of an entire planet? They were presumably paying taxes and providing resources to the rest of the Empire. Presumably the loss of that planet’s output would have to be made up by increased output from other planets that were either slacking in productivity due to rebellion or threatening to rebel and withdraw from the Empire altogether. It doesn’t seem to make good economic sense.
Then this article is for you.
As the authors note this is serious business. Those decisions taken many years ago might even have a modern analogue:
So, the Emperor and Tarkin focus on making one really huge, high-impact investment: The Death Star. They throw in Alderaan as part of that investment. This doomsday weapon will supposedly free up their resources to spend less on administration, personnel and infrastructure, and continue to function without a Senate. It seems like a big investment until you realize how much they save by not actually having a functioning government.
This is an attractive option even today, as politicians look to pay for tax cuts and handouts to core constituencies by laying off or cutting salaries and benefits for bureaucrats and government workers, as well as by skimping on infrastructure.
Via: Dr. Kevin Narizny
Source: Overthinking It