Holy Roman Empire

The development of the colony only involved a small part of the energy of the Vienna government, and the current focus is still on the country.

After the end of the Near East War, it is reasonable to say that Austria ’s economic development should decline, but the capitalist free economic market is often irrational.

The entire economy of the New Holy Roman Empire was like a runaway wagon, which was rushing forward all the way. At this time, the brakes could not be pulled anymore. I could only watch the wagon running further and further on the road of no return.

Government intervention in the market economy?Franz doesn't want to carry the pot that caused the economic crisis, nor can he afford it.

The overall overcapacity in the capitalist world determines that no matter what measures are taken, the economic crisis will erupt.

Taking measures can only extend the time of crisis outbreak, and then the longer the time of crisis outbreak, the greater the destructive power.

This is not a problem for a country in the New Holy Roman Empire, but involves all capitalist countries. Unless everyone intervenes in the market together, it is possible to survive the crisis smoothly.

Vienna Economic Conference

Franz took out a document and sent it to everyone, saying seriously: "This is the latest economic report, everyone read it carefully.

The situation of blind investment in our country is very serious. Many industries have overcapacity, and a large number of products have been backlogged.

In the short term, we cannot find a new market to digest these excess production capacity.

The newly developed Balkan peninsula and African colonies, although consuming part of the production capacity.

However, the rate of new markets is far less than the madness of domestic capital markets.

The same is true abroad: all major capitalist countries have experienced varying degrees of overcapacity.At present, we and the United States are the most serious.

This is a risk that must be assumed in the case of large amounts of foreign investment.Once the economic crisis breaks out, British and French capital will surely mobilize funds to leave the market. If we cannot handle it properly, the consequences will be very serious."

Chancellor of the Exchequer Karl said: "Your Majesty, we cannot directly interfere in the free flow of capital. Now the best way is to introduce them to the real economy.

When capital becomes real estate such as factories, railways, and infrastructure, it is difficult for them to leave."

When capital becomes real estate, it is necessary to cut meat if you want to leave the market. These industries are not valuable during the economic crisis, and even buyers cannot be found.

If no one takes the order, these invested capitals will be entangled by the market. Want to unwind and wait for the economy to pick up!

But once the economy picks up, many of these industries have become high-quality assets, and capitalists have no need to abandon these industries.

Prime Minister Felix frowned and said: "The risk is too great after doing so, and more foreign capital will invest in the real economy, and the situation of overcapacity will be more serious.

Even if these capitals are retained, it will aggravate the scale of the economic crisis, and the final harm will still be borne by us."

Chancellor of the Exchequer explained: "Everything has two sides. If you want to minimize the crisis, it is best to let them invest in urban infrastructure.

For example: Now we have promoted the urban safe drinking water project, the reconstruction of the official drainage network, and the construction of urban roads ...

There is no overcapacity in these industries, and there are more than 300 cities in the New Holy Roman Empire.Because of government funds, we are currently only rebuilding infrastructure in large cities.

These areas can accommodate a large amount of capital, but once the economic crisis breaks out, the capitalists' capital chain will break, and a lot of bad-end projects will appear, which still needs the government to take over."

Felix first asked with concern: "Takeover is a small problem. The biggest problem is the construction of urban infrastructure. The government has always invested in construction. These projects basically have no possibility of profit.

If you want capitalists to invest, you must first let them see the profit point.The city's safe drinking water project is just that. Waterworks can charge water fees. What profit can other infrastructures make?"

Chancellor of the Exchequer explained: "Of course there is no profit point. The investment in infrastructure construction is too large, and most projects are of a public interest nature. It is simply impossible to make money on the project itself.

Therefore, we must carry out a roundabout approach, for example: bidding to the society, the previous government only took a small part of the money to allow capitalists to advance construction, and after the completion of the project, the project was passed to check and settle the project.

None of these projects can be completed in a short time, and the amount of investment is very large. Once the economic crisis broke out, the banks tightened their money and most of the capitalists' economic chains were broken.

As long as it is stated in the contract that we do n’t pay for the bad-end project, we can save a lot of money.

If the consortium behind these foreign capitals is willing to inject capital to continue to complete these projects, then it is best.

With the influx of new capital, the construction of these projects can continue, which will inevitably drive the economy of many industries, and this economic crisis will pass.

Anyway, the money for this infrastructure construction will come out sooner or later, and we can still survive an economic crisis steadily. We still make a profit."

Franz's eyes lit up. Isn't this a replica of Roosevelt's new economic policy?It's just that the scale is not that big. The initial basic starting point was not to weather the economic crisis, but to trap foreign capital.

That's right, it is stuck.Infrastructure projects, as long as money is invested, are locked in.Don't expect the Vienna government to pay in advance before completion.

Either the capitalists are going through the difficulties with Austria, and everyone has resisted the economic crisis together; or they are leaving the market, and all the previous investments have been floated.

In order to mitigate the harm caused by the economic crisis, it is now the best option to pull people into the water.The worst case is nothing more than leaving behind a mess of projects. The Vienna government is responsible for taking over.

In the past, Franz can allow capitalists to jump through the huge pits of railway construction, and now naturally they don't care about letting them jump into the pits of infrastructure construction.

This is not a pit. During normal economic development, they are all high-quality projects that do not have any pitman nature.

After thinking about it, Franz warned: "The plan is very good, but we must pay attention to grasp the degree.

It must be ensured that the winning bidders are all powerful capitalists. If a group of unpowered households get the project, the last one will be ourselves.

Retaining foreign capital is only a means, not an end. Our ultimate goal is to survive the economic crisis smoothly.

According to the current situation, there has been a serious overproduction in the capitalist world, and the economic crisis has erupted, which is a problem within two years.

When necessary, a margin system can be introduced.Let the capitalists who undertake these projects pay the project guarantee money first, and return it after the project is successfully completed."

In addition to the overcapacity, another characteristic of the economic crisis is the lack of money in the market.Everyone's funds are concentrated in the hands of a few people, resulting in insufficient liquidity.

Now is the age of the gold standard, and it is impossible to issue a large number of additional currencies.Unless the economic crisis is too severe to bear, Franz will not devalue the currency.

So it is very important to keep the capital in the country as much as possible. It is the worst way to force financial supervision and prohibit capital outflows.

Unable to change the rules, then it is very necessary to obey the rules, and blindly breaking the rules is bound to be repulsed.

As a member of the vested interests in the rules system, Franz does not think that breaking the rules is suitable for Austria.

In order to retain foreign capital within the scope of the rules, Franz doesn't want the second generation of noblemen in the country to come out and make trouble. If they have the strength, is it not harming themselves if they have no money to run projects?

This is not a joke, but a fact.Aristocratic families have money, it does not mean that every family member has money, many noble children can only be divided into a small part of property.

Land, knighthood, and core industries will not be divided out, otherwise these families will fall for generations.

The eldest son who often inherits the family business, they have enough assets to inherit, and will not go out and mess up; the second sons who do not have many assets are often active in the gray area.

Franz encountered more of this kind of death boy.During the Great Revolution of 1848, it was not known how many aristocratic families, because these children died, the family behind them was killed.

Afterwards, the major aristocratic families have strengthened their binding force on their children. Most of the noble children who are active in thinking have encountered brutal suppression by their parents.

In recent years, they have been relatively calm. After all, they have experienced the Revolution in person. One third of the nobles in the country have lost their titles, and half of the families have declined.

The Chancellor of the Exchequer questioned doubtfully: "Your Majesty, what is the margin system?"

This is not his ignorance, but the concept of no deposit system at all in this era. The earliest guarantee system will only appear after 40 years.

It's normal that such advanced concepts cannot be understood.Everyone is accustomed to Franz's active thinking, and often puts forward some new ideas.

Franz explained: "It is very simple to let the winning bidder pay a sum of money to serve as a guarantee that the project can be successfully completed.

Including labor wage payment guarantee, project quality guarantee, and project completion guarantee.After the project is successfully completed and the wages of the workers are settled, the government will return the security deposit in full."

Prime Minister Felix asked, "Your Majesty, isn't it the same as deducting the money from the project?"

Franz shook his head and said: "Different, deducting from the project money does not determine the capital strength of the capitalist.

They completely took the contract signed with the government and went out to find bank loans, relying on bank loans to complete the project.

If it does not matter in normal times, it will not affect the normal progress of the project, but once the economic crisis occurs, the situation in which the bank shrinks the money is different.

Our goal now is to retain foreign capital, not to create opportunities for some people to make a fortune. Once the project ends, we still need to come back.

After receiving a deposit, our risk is reduced to the lowest point.If the capitalists do not want to bear this loss, they will have to overcome the difficulties with us."

This is a psychological problem. The more capital invested, the harder it is for people to let go.The larger the locked-up capital, the tighter the capitalists ’interests are tied to Austria.

In order to avoid the previous investment, the capitalists can only allocate more funds to fill the pits to ensure the normal progress of the project.