"We must assume the neighboring business is funding the protection racket"
Wow.
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That’s how protection rackets work. They don’t just target one business…they target the neighborhood. Anyone paying the racket is funding their operations.
A soldier who loads the weapons that are used to kill civilians is liable for the war crime…perhaps not as much as the ones ordering the killings but they are part of the immoral machinery. Ignorance or fear do not absolve you of guilt.