Xinshun 1730

Chapter 1359 The Wealth of Nations ([-])
The core of this booklet is of course version 2.0.

But because it is actually a plus version, there are also some currency issues in it.

The content in the booklet is basically logical and self-consistent, and sounds quite reasonable.

At least, George III and other core members of the royal party cannot refute.

The core content of this booklet can be roughly divided into six articles.

Article [-]:
Currency issues.

When the UK, or even the whole of Western Europe, is trading with China, why are European products not competitive enough?
Excluding technical factors, monetary factors are also key issues.

The brochure should still learn from history:
There used to be such a country.

It is the issuer of the world currency, and it has the right to issue banknotes of the world currency.

Its currency is used all over the world, from the Baltic Sea, to the jungles of West Africa, to the shores of India, to China.

Even later, when some latecomer countries issued their own currencies, they were bound and exchanged with the currencies they issued.

An economic turmoil in this country may lead to a worldwide war, and even directly affect the other side of the ocean, causing currency chaos and government financial collapse in the ancient country on the other side of the ocean.

There was once such a country.

Its fleets, from Europe to America, and from America to Asia, dwarf all other nations in colossal warships, and tremble in all navies of the world with invincible fleets.

It has divided the world with another country that is hostile to life and death, and all the latecomers are trying to resist the division of the two great powers.

There used to be such a country.

It is extremely fanatical about its own values ​​and sells them all over the world.

Relying on money, words, cannons, and warships, it spread its values ​​to all parts of the world.

And the honorary naturalization system has been implemented, and the "barbarians" who recognize its values ​​can obtain honorary nationality.

There used to be such a country.

Its own domestic productivity is insufficient, but it forces the areas it influences and controls to use its own products.

And try to do everything possible to prevent the commodities of late-developing countries from entering its control.In order to suppress late-developing countries, it did not hesitate to organize a powerful ocean-going fleet that is unparalleled in the world.

There used to be such a country.

It has some advanced technologies in its own country, and these advanced technologies are strictly sealed to the outside world. Anyone who tries to spread these new technologies will be severely punished...

In the end, however, the country failed.

This country is called Spain.

Because of too many gold mines and silver mines, domestic prices continued to rise, which eventually led to a price revolution throughout Europe.

As the issuing country of the world currency, Spain must spend the money to buy things.

As a result, the price revolution began to spread from Spain, and Spanish products lacked sufficient competitiveness because they were the issuing country of the world currency.

Even if it has superior technologies such as "merino sheep", it still cannot stop its own decline.

An important factor in its decline is the currency issue.

Now, the UK, and even Europe, lack sufficient competitiveness in the face of Dashun's products.

There are, of course, technical factors.

However, the currency factor is also extremely important, otherwise, it is impossible to have such a high profit in a trade that lasts for a year and a half and has high freight costs.

So, how to solve the lack of competitiveness of domestic products brought about by this currency problem?

This problem, in the era of sovereign currency fiat currency, and the era of precious metals, the solution, of course, is different on the surface.

This pamphlet prescribes a prescription for Britain or Europe, which is to completely cancel tariffs and expand imports.

Strive to transfer two-thirds of the silver and gold in Europe and America to China within 20 years.

Through the complete liberalization of precious metal controls and customs duties, the Chinese will use cotton cloth, porcelain, metal, silk, tea, etc. to suck away European silver and gold.

The sooner the better.

In this way, after 20 years, the silver deposits in Europe and America will be greatly reduced.

Originally, one tael of silver could buy 60 catties of stick noodles in the UK.

And 20 years later, when two-thirds of Europe's silver flows into China, one tael of silver can buy 120 catties of stick noodles, or even more.

If you can make 1 tael of silver, you can buy 200 catties of cornmeal or sorghum rice.

Then, with the same technology, the manufacturing industry in Europe and the UK will be competitive.

At that time, due to the increase in Dashun's silver deposits, the amount of stick noodles that Dashun can buy with one tael of silver will decrease, or at least to a level similar to that of the two countries.

Only then can we know what industries are suitable for the UK to develop.

Only after the "currency exchange rate" problem has faded away can we have a real industry with relative absolute advantages that the British are good at.

Otherwise, it is not clear.

Therefore, it is absolutely correct to liberalize tariffs and control of precious metals.

Not only should it be liberalized, but it should also be encouraged to import and consume, especially to encourage the British to consume Chinese goods.

This is not harming Britain, but saving Britain.

If, within 10 years, the UK is able to keep prices and surpluses in the UK within [-] years through rapid and unique silver outflows and trade deficits in the world, then the UK will outperform other European countries.

And the premise of this truth is the fundamental issue in the debate between "mercantilism" and "free trade".

Money, is it wealth?

What is wealth?

Is it currency?
Or is money just an equivalent of national wealth, which is created by labor?

And this is precisely the core content of free trade version 1.0:

[The so-called national wealth refers to all the necessities and conveniences of life that are supplied to the people for annual consumption].

Then, let’s not mention the outflow of silver to the world after the price revolution calmed down 20 years later.

Let’s just say that if customs duties are completely relaxed and imports of goods are increased, will the national wealth of the United Kingdom increase or decrease?
For an Englishman, he now has 30 taels of silver in his hand, so is this 30 taels of silver wealth?
If, because of the liberalization of imports, cotton tea and so on, the price will be reduced crazily.

So, has the 30 taels of silver in his hand, or in other words, [all the necessities and conveniences of life] he can have increased?

If so, if the tariffs are completely relaxed and imports are encouraged in the whole of the UK, can it be considered that the [necessities and conveniences of life] represented by silver and gold in the hands of the UK have increased?
So, can it be said that if imports are liberalized and tariffs are abolished, it can be regarded as an increase in the national wealth of the United Kingdom?
Therefore, even this 2.0plus version is self-justified and logically self-consistent, based on the core of the 1.0 version of "what is national wealth?"

From this, continue to extend down.

Now, there are "Corn Laws" in the UK. In 1688, the first version of the Corn Laws in the UK had already been introduced.

From then on, the British government needs to give certain subsidies to export oats, wheat, etc., so as to reward exports and agricultural development.

And if this method of accelerating the outflow of silver is adopted, the weekly wages of agricultural employees are now close to 12 shillings, which can meet the basic necessities of life.

Twenty years later, two-thirds of the silver flowed to China, plus the entry of consumer goods such as Chinese cotton cloth and tea, then agricultural employees only need to pay 20 shillings a week to meet their basic necessities.

At that time, will we still need to subsidize agricultural products such as oats in order to gain competitiveness?

The above is the first step in this shock recovery method, creating a shock on the currency issue, so as to solve the problem of the gap in purchasing power of silver between the East and the West that began in the middle of the Ming Dynasty.

That is to say, it is the basis for the European manufacturing industry to gain a competitive advantage.

Shock law, in the era of sovereign currency and legal currency paper money, is extremely harsh "fiscal austerity", which is the currency plan of Bolivia's shock.

In the era of precious metal currency, it should be reflected in an extremely harsh "trade deficit". Through massive imports, the country's silver deposits will be consumed quickly and "inflation" will be alleviated.

Article [-]:
The UK should completely deregulate the economy of any kind.

Removal of subsidies such as indigo for plantations in the southern part of North America; removal of subsidies for flax production and canvas production in the northern states.

Eliminate any protections for domestic industry, especially the Cotton Cloth Act, a serious, executive-order distortion of the economy.

It is necessary to strike hard at those industries that have canceled subsidies and import tariff protection.

If the cotton cloth practitioners in Manchester dare to object, they should go directly to the army, arrest them, and transfer them to the plantation.

These "vested interests" should not harm the country's industrial transformation.

There is absolutely no future for the British government to protect Manchester's cotton textile industry with high tariffs.

The rapid technical progress of Manchester's cotton industry was unlikely.

Anyone who thinks that the protection and subsidy of Manchester's cotton cloth will make Manchester the center of the cotton industry is an idiot who does not understand economics.

The protection and subsidies for Manchester can only allow these "lazy" "vested interests" to produce inferior cotton cloth through the protection of the "21 Years Act".

Of course, manufacturing subsidies in the New England region of North America, including the 6-pence subsidy bill for flax in the textile industry and the 3-pence bill for canvas, should all be abolished.

If manufacturing subsidies in New England continue to exist, the gap between the already poor New England and the southern states will become wider and wider.In the end, a single southern state will be richer than the entire northern state.

Learn from history.

Why can China export cotton cloth?

From an economic point of view, because China does not impose high tariffs on woolen fabrics, nor does it provide export subsidies for cotton cloth, so after sufficient competition, China can export cotton cloth.

In contrast, in the UK, there is a ban on oriental cotton cloth, cotton industry subsidies and raw cotton import tax rebates. This is the root cause of Manchester's impossibility to become a cotton textile center, and it is also a clear proof that no one in the UK understands economics at this time.

Such deformed subsidies and legal restrictions will only distort the British economy, making the British economy unhealthy and unable to find industries that belong to the UK, have real and absolute advantages.

As for whether this statement is correct...

Yes, not right.

At this time, economics has just started, and economics at this time cannot even explain the current world, it can only explain history.

Under the tariff protection of the UK and the subsidy of raw cotton indigo, did Manchester become a group of vested interests and hang out there?Or was it mixed into the world cotton textile industry center in the 19th century?
This is the future.Since it hasn't happened yet, it must be madly sprayed. This kind of tariff protection will definitely turn Manchester into a bunch of lazy people with no possibility of technological progress.

As for China's cotton cloth industry...

It can only be said that the theory of "comparative advantage" is completely correct.

Because of Emperor Hongwu's taxation policy, it was a tax in kind at that time, and it could not be discounted for color silver, and of course it couldn't be discounted for color silver.

Therefore, the Songjiang cloth that Huang Daopo first released developed rapidly because of the "cloth" in the real tax.

People from other places have to pay taxes and weave cotton by themselves, so it is better to come to Songjiang to exchange cotton cloth with grain or something.

This is why the cotton textile industry in the Songjiang area developed rapidly in the Ming Dynasty under the promotion of the relative advantages of the rice, mulberry, and cotton industries in the Yangtze River Delta under the unified national market and tax-in-kind manufacturing demand.

It can even be said that the development of the cotton textile industry in the Songjiang area in the Ming Dynasty was a typical practice of "comparative advantage".

It is also a day's labor. I plant rice and pick mulberry leaves faster than Songjiang.As for Songjiang, weaving cotton cloth is indeed faster than me.

Then why am I planting rice, picking mulberry leaves, and rubbing cotton cloth?Why don't I pick more mulberry leaves and rub silk, and go to Songjiang to change cotton cloth?
I am good at rubbing silk, and he is good at rubbing cotton.

I work 365 days a year, and he works 365 days a year.I rub silk for 365 days because I rub silk fast; he rubs cotton for 365 days because he rubs cotton fast.Then I switch with him.

I work 365 days a year, rubbing silk 300 days and cotton 65 days; he works 365 days a year, rubbing cotton 300 days and rubbing silk 65 days.We do not exchange, each pays taxes.

Which has a higher total production volume?

Regardless of whether these things have been taxed or not, they have not entered a black hole, evaporated, or disappeared.

Social division of labor, geographical division of labor, comparative advantage, and the increase in the total production volume of the entire Yangtze River Delta under the condition of constant labor volume can be regarded as the practical operation of comparative advantage like a textbook.

Although, those who make policies unconsciously promote history.It is impossible for him to consider these issues at all.

Even "consumption" is distorted, and it is this exchange of consumer goods facilitated by the tax in kind.

But at least, is it more representative of free trade than Manchester, which was developed by relying on high tariff protection and the collapse of India?

Manchester is also worthy of free trade?Gandhi led a self-spinning movement, which was at the level of technology in the 20th century. In one year, 246 textile factories in Manchester were abolished. Is it worth talking about free trade?

　The development of the cotton industry in Songjiang Prefecture in the Ming Dynasty was indeed benefited from the "tax in kind".It is really something that no one thought of. Such a thing as tax in kind gave birth to a result that was most in line with the "comparative advantage" and "comparative advantage" in free trade in the 16th century.

　　
　
(End of this chapter)