During the republic's extinction, which is considered to be a high republic, it prospered as a huge democracy.
The tax revenue was huge and stable, a huge budget was invested in the enhancement of the public, and a big business was carried out.
The economy was growing steadily, so it was easy for the Senate to make policies.
But that situation cannot last forever. Growth will slow down over time.
Tax revenues will decrease and will not be wasted. It was an illusion that the republic would grow and prosper forever. If it crashes, it will cause great turmoil in the galaxy. The Jedi were concerned about this.
He must take immediate action to stop the crash. That is, it is necessary to continue to bring stable tax revenues to the Senate. So he proposes to give the Trade Federation and the banking group a seat in the Senate. This proposal, which should revitalize the galaxy's market economy and contribute to national interests, was upheld.
However, the Trade Federation bribes many lawmakers to pass a bill that is convenient for them. The bribe flows to another bribe, spreads all at once, and becomes a hotbed of corruption. Eventually, the Trade Federation's connections will grow and the support base will grow.
I should have given a seat for the national interest of the republic, but as a result, corruption has become widespread. However, the Trade Federation will not be caught. The republic does not want to lose valuable tax revenue sources.
Who made the proposal to give a seat in the first place? Who came up with the idea of giving a company a seat? Damask Holding's Magister Damask is an example. The Jedi, who were worried about the collapse of the Republic, may have consulted with Damask. Magister Damask is an economically competent advisor. He says that in order to continue to moisten the market economy, companies should be given seats and given the same authority as planets and star systems. A stable and huge tax revenue will be brought to the republic, inviting the Jedi that the democracy will develop further. The Jedi agree with this.
This was a preparatory step in the Sith plan. Preygas was planning to persuade the Jedi to spread corruption to the Senate. The action that only persuaded the Jedi was most effective. It throws dirty money into the Senate, obstructs the resolution of the bill, and prevents the pursuit of national interests. The enactment of a simple bill is also stalled, and the Senate becomes dysfunctional. The Jedi didn't expect this to happen. He was deceived by Playgas.
The Trade Federation has only pursued corporate interests rather than national interests. I didn't care about the prosperity of democracy or the idea of the nation. I wanted to transform the Senate into a convenient organization for the Trade Federation. This works very well.
Later, the regretted Jedi asks Magister Damask how to get rid of it. He advises, saying that such results are unexpected. "If you raise the tax rate paid by the Trade Federation, the republic will develop further." "The damage is not enough to cause the republic's economy to plummet."