Although there were transportation costs, the labor in Japan was so cheap that the overall production cost was far lower than in Arica. Capitalists, who thrived on cost calculations, naturally brought a steady flow of business to Japan.
Japanese workers earned wages through their labor, which also stimulated the consur market. So of the consur products manufactured in Japan were sold dostically, directly profiting from the Japanese people.
As more people had money to spend, the black market thrived.
The red-light district had already begun operations.
Nightclubs, bars, pleasure houses, and won’s parlors were bustling with business. Won could work openly, and n could spend freely, making the atmosphere lively in no ti.
Never doubt a man’s instincts.
Even places hidden in shadows were sought out. Here, with legal and reasonably priced entertainnt, it beca a paradise for n. n with money would gather a few friends for drinks and indulge—it was perfectly normal.
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So even ca specifically to play slot machines and pachinko. While gambling was still illegal, modified forms were not. Hardy had his people set up a system similar to the future Pachinko parlors: balls and coins were not considered money. If players won, they could exchange their winnings for prizes, which could then be converted to cash nearby, creating a perfect closed loop.
Would you call this loophole gambling?
No, it was simply a clever use of the rules.
Legal, and no one intervened.
Hardy had even considered pushing for the legalization of gambling in Japan, which might have succeeded, but he decided against it.
Legalizing gambling would primarily benefit the governnt because it could then collect heavy taxes, as gambling was heavily taxed. Most of the money would end up in the governnt’s coffers.
Under the current system, the governnt didn’t get a di. The profits went entirely to the gangs, although most of the gang money was still funneled upward, eventually landing in Hardy’s hands. This arrangent was more profitable than a legitimate casino.
Near the Arican military bases, the red-light districts were even more lively, with constant parties and festivities. Arican soldiers went wild, sotis not returning to the barracks all night.
General MacArthur was an unusual commander; he didn’t mind his soldiers going out for fun. So, whenever the soldiers had leave, they would rush to the red-light district.
There, they found not only food, beautiful won, and drinks but also sothing even more thrilling.
Drugs.
Yes.
In Japan, Hardy no longer prohibited his people from dealing in drugs. In fact, he assigned specific individuals to manage and expand this business.
After Japan’s defeat, the Allied forces occupied Japan and uncovered a large number of pills.
The stash was said to be worth millions of dollars. The Allied forces even sold the pills through hospitals and pharmacies, earning considerable profits.
Because it was legal, the public eagerly bought the drugs. Many Japanese celebrities, singers, writers, band mbers, and artists beca addicts. Eventually, the Japanese governnt recognized the problem and enacted the Stimulant Control Act, curbing the overt distribution.
However, this only stopped the public distribution.
Secretly, the trade never diminished. It simply moved from pharmacies to being controlled by the gangs. Before Hardy ford the "Straw Hat Group," drug trafficking had been a traditional business for the Japanese mafia.
Among the companies Hardy acquired was a chemical enterprise. On the surface, it produced pharmaceutical interdiates and chemical products, but secretly, it manufactured these substances on a large scale, supplying the Japanese market. The red-light district had a significant demand for these drugs.
Sex, gambling, and drugs.
The traditional expertise of the underworld was not to be abandoned.
It wasn’t just about making money; it was about promoting Arican culture and enriching the cultural and entertainnt lives of the Japanese people.
A noble mission, benefiting future generations.
Even in Arica, where laws on certain substances were becoming more lenient, Hardy was determined not to fall behind. The high production led to so drugs even flowing back to the United States. Hardy himself didn’t deal directly in the drug business, but the mafia families did, and they quickly embraced the cheaper th market.
It beca one of the three main products in the Arican market.
The source of supply? A little-known secret factory in Japan.
As for the financial transactions between both sides, there was no need to exchange money directly. Everything flowed through the Cayman Islands, which was poised to beco the largest transaction hub in the future.
Hardy calculated that every step of the process—from production to distribution and laundering money in the Caymans—was profitable. Given the current sales figures, Hardy could make millions annually from this business.
And, of course, it had nothing to do with him.
After the departnt heads finished their reports, Hardy called in the editor-in-chief of The Global Tis’ Japan office and instructed, "Create an expert column in the Japanese edition of The Global Tis. Focus on discussions of Japan’s political, economic, and cultural issues. Invite pro-Arican experts to criticize Japan’s shortcomings, weaknesses, lack of freedom, and feudalistic aspects."
"Talk about issues like the need for democratic elections, reflecting on the invasion war, demystifying the Emperor’s divinity, promoting won’s status, and improving public welfare. The goal is to criticize Japan’s political and cultural shortcomings and highlight Arica’s superiority, so the Japanese people beco more submissive to the United States," Hardy instructed.
Hardy planned to heavily cultivate Japanese public intellectuals.
These people had no real skills but were masters of rhetoric. Their role would be to praise Arica as advanced, free, and superior, while belittling Japan as backward and flawed, creating a psychological pressure to make the Japanese feel inferior.
The editor-in-chief understood: this was a new round of psychological warfare against Japan.
"Also, assign so talented writers to interview General MacArthur, the Chief of Staff, and the division generals at the military base. Create a special issue introducing the military, with detailed accounts, including the generals’ backgrounds and the military’s organization, to emphasize the power of the U.S. Army."
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