1825 My New Daming

"Arise, slaves suffering from hunger and cold, arise, suffering people all over the world, their blood is boiling, and they must fight for the truth."

Outside the residence of Prime Minister Zuo of the Ming Dynasty, there were many bankrupt peasants and unemployed workers, singing "New Daming National Anthem" while holding a sign "Walking".

And of course there are reasons for these people's dissatisfaction. It is obviously a beautiful and positive situation.Why did the stock market crash, the bond market crash, bank runs, and factories close down all of a sudden?

How did this happen?Where is the problem?Why has the crisis occurred for more than a year and almost two years, and the Ming court still has nothing to do?

In fact, Zhuge Weidao responded to the crisis in a very timely manner. After the Shanghai stock market plummeted due to the failure of some due bank bonds to be repaid, and several agricultural companies specializing in serving small farmers burst into serious deficits, he immediately let the stock market below The officials in charge of the economy and the think tank funded by the Zhuge family should conduct a serious investigation and analysis to see where the problem lies.

However, the answer obtained after investigation and analysis left Prime Minister Zhuge very speechless!
The root of the problem turned out to be "too many wins" in the last world war. Winning was numb, so there was a crisis!
These words do not sound like human words, but after careful analysis, what is really going on!
It turns out that this wave of economic crisis in Ming Dynasty is a typical overproduction. Capitalism, there will always be overproduction.And the most serious surplus seems to be not industrial products, but agricultural products!
That is to say, there are too many delicious foods to eat!
This is not a joke, but a real existence. In fact, when Zhuge Weidao looked at the world map with satisfaction every day, he should have thought that this day would come.

Because Daming earned so much in the last war!
Don't talk about those bits and pieces, just say that the big pieces suitable for large-scale agriculture have the whole of Oceania, including Australia and New Zealand, all packaged and won!There is also the British Oregon region, including all of the U.S. states of Oregon, Washington, Idaho, Montana, and part of Wyoming on another timeline, all of which have been eaten.

In addition, California and Texas, which were under the name of the Mexican Empire, also became the paradise for the expatriates of Ming Dynasty and the Kingdom of Japan, a vassal state of Ming Dynasty, to open up farms, pan for gold, and dig for oil.
There is also the Pampas Plateau, which was "unowned" at the end of the First World War in 1833, and was also taken down by the Great Tomorrow Dynasty.

Almost all of these lands are good places to develop large-scale agriculture!Even the erratic California Central Basin has become a fertile soil rich in wheat, rice, fruits and vegetables because of the dam invested and built by the "Longzhong Water Conservancy" (Zhuge family's industry).

It is difficult to develop the fertile soil in these places by a single family farm. These places are most suitable for the development of mechanized large-scale agriculture and large ranches!Of course, the Ming court also encouraged domestic small farmers to go to those places to get a piece of land for development.

But if the small farmers dragged their families with them and traveled thousands of miles to those places, the Ming court would be embarrassed to just give them one or two hundred acres, right?There is no motivation to give this number to others!Therefore, the Ming court not only allocated large tracts of land to them, but also provided them with low-interest or even interest-free development loans to help them purchase agricultural machinery.Therefore, after immigrating to these “new territories” in the Ming Dynasty, most of the small farmers became farmers with large tracts of land.

At the same time, the big capital of Ming Dynasty was also encouraged to go to the "new territory" for various developments. Of course, these big capitals had to take the way of mechanized large farms when they went to the new territory.

And the production cost of the mechanized large farms in these new territories is simply incomparable to the cost of small farmers in the Ming Dynasty!

As more and more fertile land in new territories were developed, low-cost agricultural products from new territories began to impact the local market of Ming Dynasty starting about ten years ago. The life of local small farmers in Ming Dynasty began to become more and more difficult.However, the Ming court at that time did not think this was a problem. The life of small farmers was difficult, so they moved to new territories to become big farmers!The production efficiency of large farms is higher, which can provide more and cheaper agricultural products for the local people.Food is the most important thing for the people, this must be a good thing!

As for the domestic bankrupt small farms and the debts attached to these small farms, it seems that it is not a big problem.The big deal is to allow the transfer of land-sharing farms and use the proceeds from the transfer to pay off debts.

As a result, mechanized large farms with high production efficiency began to appear in many places in the Ming Dynasty!
At this time, the financial situation of those small farmers and small households who were still struggling began to increase rapidly, and they gradually embarked on the road of debt, bankruptcy, and emigration (going overseas or working in cities).

And the process of bankruptcy of the local small farmers in Ming Dynasty is from slow to fast, and faster and faster.At the beginning, it seemed that the problem was not big, but as the number of large farms increased, the profits of small farmers became thinner and thinner, the tide of bankruptcy became more and more violent, and the output of agricultural products increased. So the surplus crisis and The debt crisis broke out from agriculture and individual small farms all over Ming Dynasty, and soon spread to some large agricultural companies that were not very competitive.

The concentrated bankruptcy of a large number of farmers will inevitably affect the consumption of industrial products, and the crisis encountered by large agricultural companies in new overseas territories has temporarily "frozen" a large number of construction and investment projects - steel bars, cement, ships, The demand for vehicles and agricultural machinery has plummeted again!

And the production capacity of Daming Industry has been expanding rapidly in the past few decades!The production capacity is already a little bit excess, and consumption and investment have shrunk rapidly. Of course, the industry has also erupted a crisis of excess.

And the surplus crisis in agriculture and industry will inevitably affect the financial industry. Stocks, bonds, mortgages, all have problems!

Now that the problem is found, let's solve it!
When he "figured out" the problem just now, Zhuge Weidao was not in a hurry at all—wasn't it the economic crisis!Isn't it just agricultural overcapacity, industrial overcapacity, stock collapse, bond collapse, and bank failure? How is it so rare to defeat Prime Minister Zhuge?Prime Minister Zhuge knows the economic crisis best. On "Keynesianism"!Lower interest rates, increase national debt, increase government spending, distribute agricultural subsidies, and vigorously stimulate the economy!

After a while of operation, the economy was stimulated to pick up a bit, the stock market that collapsed also rose back a little, and the banks that broke out in the debt crisis were a little relieved.But the effect is still unsatisfactory. The non-performing loans of the entire banking system are still increasing, and the market is still a bit stuck.

At this time, an unexpected situation appeared again - under Zhuge Weidao's stimulus policy, Ming Dynasty actually had a trade deficit!And the deficit is caused by cheap industrial products from the United States, Germany, and the United Kingdom!
It turns out that this economic crisis is actually global. It is caused by the continuous expansion of production capacity in industrialized countries around the world in the past few decades. Or more precisely, it is due to the fact that after the Second Industrial Revolution, the efficiency of production temporarily It cannot grow, but the inefficient production capacity accumulated by various countries has been released in large quantities, resulting in a crisis of excess.

The production capacity of the world's major industrial countries such as Ming Dynasty, the United States, Germany, the United Kingdom, the Roman Republic, and the Roman Empire have generally maintained continuous growth.Although the United States and the United Kingdom have experienced a decline in industrial production capacity for a period of time because of the difficulties they faced after the defeat of the last World War.But this decline did not form a long-term trend, but began to grow rapidly after overcoming difficulties.

Behind this growth in production capacity is the continuous growth of corporate, national and household debts!

If these production capacities cannot be effectively utilized, the crisis of overproduction will inevitably spread to the financial industry. Under such circumstances, countries must of course try their best to expand exports in order to alleviate the domestic crisis of excess production and avoid financial collapse causing " Total collapse"!
By the way, the finances of various countries are not "free" now because countries are still implementing "redeemable banknotes", so no one has the ability to print unlimited money, not even the Ming Dynasty.

This "real banknote" from redeemable banknotes to irreconcilable banknotes cannot be changed overnight.

If you are not careful, the currency will collapse!
Therefore, the Zhuge Weidao government had no choice but to take immediate measures to substantially increase tariffs to keep foreign goods out of the "Celestial Dynasty Economic Circle". Other industrial countries immediately followed suit, and everyone closed their doors and started trade protection together.

As a result, the relatively free international trade order disappeared immediately after World War I, and the trade barriers of various countries interrupted international complementarity, making the industry and agriculture of each country even more depressed, and industries related to international trade even broke out. Frenzy. And the economy of Ming Dynasty, which had improved a bit due to the stimulus policy, fell into depression again!

After withdrawing his eyes from the street outside, Zhuge Weidao closed the curtains of the office, and said in a low voice, "How could I be Hoover? I must be Roosevelt!"