Holy Roman Empire

Chapter 668: War Without Smoke

1879 was a turning point for the whole world. Both the politics and the economy were affected by the Russo-Prussian War.

Affected by the tensions in Europe, France and Austria are staring at the European continent without going out to do things. The British are only kicking in South America, and their main energy is also on the European continent.

None of the three big hooligans did anything, let alone other countries.

These years, the political sensitivity of the colonial empire is very high. The situation on the European continent is not tense and the focus is not on the homeland. What if the situation is out of control?

The colonial empire didn't do anything. It was undoubtedly good news for those independent nations that could not survive, and they could finally spend a few days comfortably.

When the Russian-Russian war started, even the contradictions between the three countries of Britain, France and Austria were suppressed.For the common benefit, the three major powers have stood together for a long time.

Of course, this alliance of interests is not reliable. Once major changes in the international situation occur, or the power of the three countries is out of balance, this alliance may collapse at any time.

If the impact of the Russian-Russian war on the international situation is more in the post-war period, then the impact on the world economy will be immediate.

There are many industries affected, affecting almost every field, among which agriculture, manufacturing, finance, and service industries enjoy the largest dividends.

In the capitalist economic world, a new round of prosperity has begun.The most typical is the disappearance of the agricultural crisis, the overcapacity of the manufacturing industry no longer exists, and a prosperous economy directly promotes the development of the financial industry and service industry.

Although the war has just begun and the biggest dividend brought by the war has not yet fully erupted, the capitalists are full of confidence.

A lot of hot money has poured into the market, and the economic environment has suddenly improved.Employment advertisements can be seen all over the streets, and workers ’wages have risen slightly in war-related fields.

According to statistics, the new investment in Austria in November alone reached 160 million Aegis, an increase of 76.4% over the same period last year.

Most of this part of the capital has flowed into the manufacturing industry, and factories have risen from the ground. Obviously investors are very optimistic about this opportunity.

Not only Austria, but the entire continent.Capital is like crazy, constantly pouring into all walks of life, wanting to take a slice of the war in the Russian-Russian war.

Looking at the statistical data, Franz frowned: "Now the market is too hot. Although the consumption of war is large, there are some purses in the two countries.

Neither Britain nor France, nor us, will provide unlimited funds to them.It wo n’t take long for a new round of overcapacity to erupt, and the European economy may cry after the war."

Economic Minister Reinhardt Haldgen explained: "Your Majesty, this is an inevitable law of economic development. In the previous wars, many people have made a fortune, and they have been blinded by their interests and ignored. The existence of risks.

Not only domestically, but the entire European world.According to estimates of economic experts, in the past two months, the amount of new investment in Europe has increased by at least 50% compared with the same period last year.

Overcapacity after the war will become a common problem for European countries.This is a huge trouble, but also a great opportunity.

As long as we seize this opportunity, we can take the opportunity to defeat the French manufacturing industry and weaken this biggest competitor."

There is no anti-dumping argument this year, and free trade is the mainstream of the times.The French did not resist the pressure and joined the free trade system six months ago.

The core of "free trade" is: the government lifts restrictions and obstacles on import and export trade, cancels various privileges and preferences for domestic imports and exports, so that the goods can be imported and exported freely, and free competition in domestic and foreign markets.

On the surface, it is good for everyone. It can also have a global market and clear the obstacles to the circulation of commodities.

In fact, there is also a gap between enterprises and enterprises, countries and countries, and this gap directly reflects the market competitiveness.

There is no doubt that France, lacking resources, is at a disadvantage in this round of competition.Imported raw materials directly increase production costs.

In order to cut costs, capitalists naturally have to lower the wages of workers, and the influx of cheap labor in Italy has created favorable conditions for lowering wages.

In the last ten years, the per capita wage in Europe has increased by 23.8%, while the per capita wage in Greater France has only increased by 5.4%.

In this context, the conflict between the French and the Italian people is naturally endless. Even if the Paris government tries to suppress it, it still has little effect.

Regrettably, even if artificial wages are lowered, the international competitiveness of most French industrial and commercial products is still not high.

No way, who made the labor cost cheaper this year?Except for labor-intensive industries, the labor cost of most industrial and commercial products is less than one fifth of the total cost, or even less.

It is the industrial raw materials that dominate the production cost. How can we improve the market competitiveness without solving the problems at the source?

The market is a whole, while reducing labor costs, it also weakens the purchasing power of the market.

Although Great France has a population of 60 million, the market's consumption power cannot keep up with John Bull, which has only 30 million people.

The lack of market consumption power has returned to industrial production, forcing companies to produce cheaper commodities, which is a vicious economic cycle.

Taking coal as an example, the cost of coal for industrial use in France is 1.3 times that of Austria, and even more than 2 times in some inland regions.

This is just the beginning. The high price of coal causes the cost of power generation to rise, which in turn leads to an increase in electricity bills. High electricity prices are undoubtedly the biggest obstacle to the promotion of electricity.

Step by step, step by step, electricity is not promoted, and it is naturally impossible to talk about electricity-driven mechanical equipment.

Affected by this, upstream power machinery equipment manufacturers have been restricted in their development, unable to invest in the research and development of more advanced equipment, and are gradually lagging behind in international competition.

Downstream equipment users, because they did not adopt the most advanced productivity in time, were surpassed or even eliminated by competitors in the market competition.

In this era of weak meat and strong food, backwardness will be beaten.The French's military strength is strong enough, and no one beats them for no reason, but the economy is different. Everyone is a competitor, and it is inevitable to be a black hand.

As long as it can defeat competitors, it is naturally worth paying some price.Under the free trade system, large-scale overcapacity appears, and countries will have to fight for industrial strength.

In this regard, the Vienna government is confident, and Franz is also confident.Because Austria's infrastructure construction is a complete king of its time.

Not only is the transportation developed, but it is also the earliest European country to popularize electricity, and it is also the birthplace of the second industrial revolution. Emerging industries are at the forefront of the world.

In this regard, Indo-Austria has two extremes, one focusing on emerging fields and the other focusing on traditional industries, both of which have become industry overlords.This has created favorable conditions for cooperation between the two countries.

Franz: "Since this is the case, let the crisis come even more violent! It is best to destroy it together with the manufacturing industries in Europe and the United States.

This time, we can work with British capitalists to let private companies take the lead and do n’t directly involve the government.As soon as the Russian-Russian war ended, it launched a capital war."

A war without smoke is sometimes more cruel.The damage caused is no weaker than a war.

It is conceivable that it will take a long time to become a hot topic in the whole society if unemployment or bankruptcy takes a long time.

After a moment of thought, the Minister of Economy Reinhardt Hardeghan said: "As long as it is a country that has joined the free trade system, it will be easy to handle.

The United States of America has some difficulties. They are still stubbornly implementing trade protection policies, and it is very difficult to pry open their doors."

learn from mistakes.American capitalists have been stricken by British capital several times, and now they are scared, and they simply close the door and play for themselves.

Anyway, I am rich in resources, and directly copy the technology of European countries. In addition to a small market, my life is not bad.

Franz: "This question is handed over to the Ministry of Foreign Affairs. The British are pioneers in promoting free trade.

Everyone can join forces to put pressure on the United States, and joining them is half of their own. If they are stubborn, then there is no need to be polite.

Since they want to play trade protection, simply let them play enough, the international embargo is a good choice."

To be honest, the industrial and commercial products of the United States this year are really not very competitive, and many products are not even comparable to the Russians.

Without trade protection and open doors to compete, they will definitely die miserably.

Franz doesn't expect the United States to fully open the market, as long as a door is opened, it can be accepted without being private.

In the fight against competitors, Franz never gave up any opportunity.

Prime Minister Felix: "Your Majesty, if we push one more, the post-war economic crisis will probably be very tragic.

If the crisis lasts too long, the situation on the European continent will be broken again. We are not ready yet."

Man-made disasters are the most terrible, especially such man-made disasters that can only manipulate the beginning and cannot control the ending are even more destructive.

With the advent of the industrial age, the economic impact on the political situation has become greater.Because the economy has deteriorated, the situation has become turbulent and the war has broken out.

Franz shook his head: "Without so much time to prepare, we can never be fully prepared. When we are ready, opportunities are missed.

Moreover, if we do not take action, it does not mean that the British will not take action. Instead of responding passively, it is better to take the initiative."

As we get older, we tend to be conservative. It does not mean that conservatism is not good. In fact, for a big country, conservatism often means that the national games last for a long time, and radicalism is a national disaster.

It's just that the opportunity is too rare. Once you miss this opportunity, and you want to take action, the price you need to pay is not half a star.

To put it bluntly, Franz is not living in peace.In addition to being afraid to take risks in the military, he still doesn't mind trying it in the economic field.

If it succeeds, it is the best; if it fails, the unlucky ones are also speculators.The Vienna government ’s experience in responding to the economic crisis is very rich, and it cannot hurt the country ’s roots.