Chapter 262: Market Expansion (1)
In "The Wealth of Nations," Adam Smith praises systematic division of labor, arguing that it maximizes labor productivity and thereby increases national wealth.
And as everyone living in the 21st century knows, his claim was correct.
Even in making a pin, having multiple people specialize in divided processes with mechanization and efficiency is far more productive than having a single craftsman control the entire pin-making process. Productivity can increase ten to a hundred times.
Then... why did people only implement this good practice after the advent of modern capitalism?
The reasons are quite diverse. A narrow market that couldn't realize economies of scale, lack of capital control over labor, and so on...
First, when division of labor is implemented, each task becomes extremely simple. As everyone knows, such simple labor is very painful.
But in Virginia?
"Y-yes! Work needs to be this boring for the ascetic practice to be worthwhile!"
"Ugh... after turning the spinning wheel for 10 hours straight, I feel like I'm getting closer to the Lord!"
...Such obstacles were overcome(?).
But the second obstacle, a more fundamental one, still remained unresolved...
Let's look at the example of a pin factory from "The Wealth of Nations."
"Brothers and Sisters! Let's work hard today making pins for the community!"
"Sisters in process #1! Come and receive your equipment!"
Whirrr!
Clang! Clang! Clang!
Clackclackclack!
The labor efficiency of dividing into detailed processes – taking out wire, setting it up, bending it, and grinding it – is 240 times superior to having a single craftsman handle all these processes.
But.
"What do we do with 240 times more pins?"
"Uh... don't you know?"
If supply increases without demand increasing, the economy falters from overproduction.
Although Virginia's various factories and monasteries had managed to sustain themselves by producing frequently disappearing consumables, at most the Virginia market consisted of 100,000 people.
And exporting pins to England? Who would specifically buy unfamiliar foreign pins with reduced price competitiveness due to added transportation costs?
Eventually, Virginia's industry quickly became saturated and was on the verge of explosion.
They tried bundling pins with gift trades with Native Americans, and citizens used consumables lavishly, feeling like they had become rich... but it was still just a 100,000-person market.
That limitation...
Was overcome.
With the integration of Florida.
Florida is literally in a state of destitution with nothing left. After the uprising, war had swept through all of Florida, and with the economic connection to Spain severed, its internal organs were damaged.
Then... they met Virginia.
Virginia's factory owners shouted with joy and shipped massive quantities of products at low prices.
At the same time, since Florida didn't have money to buy these products, they balanced the trade by purchasing cash crops and livestock such as cattle, sheep, goats, and horses from various parts of Florida.
Simultaneously, with the Knight Brigade greatly expanding in Florida, demand for tractors increased, and tractor parts factories expanded everywhere.
This was the power of market expansion. Virginians could once again happily enjoy ascetic practices and profits. Naturally, they also feasted on various meats coming from Florida.
However...
"I'm not sure if this situation is acceptable."
"..."
"There are many problems. The gold and valuables left by the Spanish in Florida are running out."
"..."
Despite everything, Florida was a newly independent, poor colony. It was difficult to maintain trade balance while handling all the volume Virginia was pouring out.
Assets were unilaterally flowing out.
Moreover, as mentioned earlier, there were also significant concerns about the Knight Brigade's massive expansion in Florida.
"Isn't the Knight Brigade ultimately affiliated with Virginia? Now they grow crops on our land and distribute them free to our poor. Plus, they protect our land for us."
"..."
"It's... something to be grateful for. But."
"Right. A relationship of only giving and receiving can't last long."
Alonso, who had become Florida's leader, responded with a sigh to his assistant's words.
Of course, the possibility of Virginia acting with malice toward Florida converged to zero. Everyone knew that.
Because they all believed in 'Him.'
Trade issues wouldn't last long. As time passed, Florida would likely become wealthy like Virginia.
Once the Knight Brigade was widely established in Florida, Florida too could make significant profit from grain exports. The residents would become wealthy, and naturally, the trade balance would improve as well.
Moreover, Virginia was also providing many conveniences for them. This was evident in how they were buying lots of fruits from Florida that they didn't particularly need.
However...
'Anxiety might erupt before the trade issues are resolved.'
Things couldn't continue like this.
A knot needed to be tied.
Anxiety was rising among Floridians. More precisely, it was anxiety arising among the Indio... no, the natives.
Alonso recalls a conversation he had recently with a tribal chief.
"Actually, my daughter married into the Apalachee tribe. Two years ago."
"Oh... congratulations?"
"It's not something to congratulate. Haven't the tribes driven out by the Apalachee become our overlords?"
"Not overlords..."
"I heard they swore allegiance to your Great Chief."
"...Let's continue."
"Anyway, even if they've become our overlords, it doesn't matter to us. But if the Apalachee are threatened, my daughter and grandchildren will all be in danger..."
"They won't harm our people."
"Did you make such a promise?"
"...No."
"Or do you have leverage against them?"
"...That's not it either."
"Are we stronger than them?"
"We're weaker."
"..."
"..."
That's how it was.
At minimum, a relationship of equality with Virginia had to be maintained. Otherwise, those who made up the largest portion of Florida would tremble with anxiety, their hearts filled with a growing unease that could spread like wildfire through the settlements and villages. The delicate balance of power, so carefully cultivated over years of diplomatic negotiation, would teeter on the edge of collapse.
The natives.
If the majority distrusted the Florida government and took a confrontational stance with Virginia...
That would mean the collapse of Florida.
Would Florida become as wealthy and powerful as Virginia through Virginia's consideration first?
Or would fearful and anxious Indians who were preemptively worried overthrow this government first?
That was the problem.
With a sigh, Alonso scrawled his signature with Virginia-made ink on Virginia-made paper and sank into contemplation.
This concern...