Holy Roman Empire

The economic crisis in the capitalist world often comes and goes in a hurry.The first global economic crisis finally came to an end in early 1859.

As of the end of 1858, Austria ’s gross industrial product fell by 29.7 percent from the previous year, the total economy fell by 17.3 percent, bankrupt companies reached more than 3,000, and the unemployment population Breaking through the million mark ...

Franz finally understood why everyone was so frightened by the economic crisis, but the Vienna government actively took measures to deal with it, but the loss was still so great, let alone countries that did not take measures.

Of course, such a huge loss in the Austrian economy is also directly related to the previous wild growth. The market value of the railway company fired by Franz has once fallen below one-tenth of the peak period.

The loss caused by the economic crisis is not only a bad thing.Looking at the problem from another angle, it also means that the industrialization of Austria is almost completed.Such losses will only occur if the capitalist economy has developed to a certain extent.

If the capitalist economy does not develop, even if it encounters the economy, it will not be affected.

The Russian Empire next door is an example. Is the economic crisis related to them?

The most severe losses in this economic crisis are the United States and Austria. The United States is because the British have withdrawn funds and there has been a shortage of money in the market. The weak central government is completely at a loss.

Austria is naturally the aftermath of the influx of capital and the blind investment of capitalists.After the economic crisis, the market returned to rationality, which is not a bad thing.

At first glance at the economic report, Franz nodded in satisfaction.

In the absence of any experience to learn from, it was possible to get out of the economic crisis so quickly, the performance of the Vienna government was still qualified.

Prime Minister Felix said: "Your Majesty, the economic crisis is over and the world economy is beginning to pick up. The Cabinet decided to end the economic stimulus policy so as to avoid another frantic blind investment.

In response to this economic crisis, the government increased investment in infrastructure, and our fiscal deficit in 1858 was as high as 280 million Aegis, which has seriously exceeded the government's financial capacity.

In order to reduce fiscal pressure, the government plans to compress fiscal expenditures over the next three years and gradually reduce its debt by 30 million Aegis.

The projects that have already started construction continue to be carried out, and all the projects that are being planned and not yet constructed are postponed."

The infrastructure also requires money. As the biggest receiver in this economic crisis, the Vienna government has also spent huge amounts of money.

Part of the funds raised from the issuance of bonds was used to pick up the bad project; part of it was invested into the railway company and industries related to national economy and people's livelihood.

The fiscal deficit of 280 million Aegis was spent.Two and a half years of fiscal revenue have turned into infrastructure projects and corporate equity.

The remaining part will also be earmarked.Not all engineering projects are bad, and the lock-up plan still traps many people.

People continue to complete the project, and the government will naturally have to pay for the project.The government of Vienna attaches great importance to credibility, and pays as soon as it passes the acceptance check.

The government is running out of money. Naturally, it has to cut expenses. The first cut is to invest in infrastructure.

This large-scale infrastructure construction has already been equivalent to ten years of investment in normal times, and it is naturally impossible to continue.

No matter how crazy it is, Franz cannot spend twice his fiscal revenue every year on infrastructure construction.

During the economic crisis, a wave of emergency response is okay.After the end of the economic crisis, priority should be given to economic gains in infrastructure construction.

Franz thought for a while and said: "This is inevitable. Our total debt is already the fourth in the world, and we should indeed reduce some of it.

Now the infrastructure construction of important cities and towns in China has been covered. There are no major projects in the short term. Infrastructure construction can come to an end.

In the next two to three years, the government's fiscal pressure may be relatively large.After this time, a large amount of corporate equity held in our hands should generate profits."

When he said this, Franz himself had no confidence.It is not false to generate income, but unfortunately the largest sum of money has entered the railway company, and this investment does not see any profit.

Unless, he now relaxes the policy to allow railway companies to abandon some unpopular lines and only operate railways in commercial and prosperous areas.

Economically, this is the most profitable; politically, this is absolutely impossible.

Covering the railway to every city in the country is not only for economic development, but also for strengthening the central government's control over the local area.

Against this background, Franz can only say sorry to the speculators who were later locked in.For the development of the country, the railway company must first make losses and operate in the short term, not for profit.

If the government did not bundle railway projects during the hot market, and the capitalists would build the railway freely, it is estimated that there will be three or five railways in prosperous areas in parallel, and there will be no railway tracks in economically backward provinces.

This has been proved in Britain and France. Railways without economic value will not be built at all, and construction in large numbers in economically prosperous areas is repeated.

If there is only one pit, the problem is that many companies invested by the government belong to heavy industry, which is a kind of investment with high investment, long cycle and high return.

In the short term, these enterprises will have to expand production and promote technological innovation, and basically will not see dividends. They hope that these investments will make up for their fiscal dysfunction.

Of course, from the beginning, the Vienna government did not expect much profit from it.

It is more through the government's shareholding to provide companies with life-saving funds to protect these core industries.

This is equivalent to the hardship of the current government, leaving a generous family to the government behind.This kind of thing can only happen in a politically stable country.

If the government changes countries frequently, it would be nice not to leave trouble for the next term, but also want to save their family and dream!

This is also the reason for the increasing government debt of many countries. Anyway, as long as you are happy this time, who will control the life and death of your successors?

Accumulated one after another, and in the end the debt was high, the government had to be influenced by the consortium, and gradually became a spokesperson for money.

The iron camp, the soldiers in the water.

The monarchy is different, the cabinet government will change, the emperor Franz ca n’t be changed, even if he wants to change his successor, it ’s his descendants.Naturally, no one will be allowed to sacrifice future development for immediate benefit.