Kai Fu Han

Chapter 112 Occupying Penglai 6
Based on Liu Xinqi's understanding of Zhao State, Zhao State has developed to the pinnacle of feudal society more than 160 years ago, and the sprouts of capitalism have appeared. How come there are still slaves?

"Tell me about it," Liu Xinqi said.

Jiang Xue continued to explain:
"Although debt slaves are not real slaves, the difference between them and slaves is that slave owners cannot kill them at will. Rich people such as gentry and landowners lent farmers money and grain when farmers were in dire straits, and then calculated high interest rates, and Compound interest (compound interest) is calculated, making it impossible for farmers who borrowed debt to repay it with their meager income. When the debt accumulates to a certain level, the debt is used to force them to work for them and pay them very little remuneration. This makes the borrowers forever There is no possibility of paying off the debt, as the debts of the father and the sons will be repaid endlessly.”

"No different than the slaves of old."

Liu Xinqi listened to Jiang Xue's explanation and finally understood what he meant.

Even if the land law is implemented, some farmers will still be coerced by debt and cannot really improve their lives and current situation.

"Are there many such 'slaves'?" Liu Xinqi asked.

"Many, two out of ten." Jiang Xue replied.

This is not too small. What Jiang Xue said is probably based on household units. The calculated population is about 3 in Dengzhou alone, which is not a small number.

"Do you have any solution?" Liu Xinqi continued to ask.

"Not yet. All debts are agreed with IOUs, and the creditor did pay real money to the borrower. It cannot be forgiven with just one sentence." Jiang Xue said.

"Really not." Liu Xinqi lowered his head and thought.

The people below were also whispering to each other. Most people knew about this phenomenon, but they didn't think about it so deeply. Moreover, Jiang Xue gave these people a unified name "debt slaves", which was sensational.

"Does any of you have any good suggestions?" Liu Xinqi asked everyone.

One official boldly replied:

"It's natural to pay back debts. Besides, when you borrow money, it's voluntary. The government has nothing to do with this matter."

As soon as Liu Xinqi heard this, he knew that this official must belong to the beneficiary class.

"That makes sense, but the interest rate is too high, so you're taking advantage of the situation."

After hearing this, the official Liu Xinqi did not get angry and continued boldly:

"But without the borrowed money, the borrower would have starved to death. Looking at it this way, the creditor can be regarded as doing good deeds."

Liu Xinqi was very angry after hearing this, but he asked everyone to express their opinions. If he got angry, no one would dare to speak later.

"It makes sense. Does anyone have any suggestions?" Liu Xinqi asked again in a calm tone while holding back his anger.

The official sat down happily, as if he had won a battle.But he didn't notice that Wu Xinggong looked at him with obvious sympathy and contempt.

"Idiot!" Wu Xinggong muttered softly.

After waiting for a while and seeing that no one spoke anymore, Liu Xinqi said.

"I have a way. It may put some financial pressure on the government at first, but it will be much better after this period of time. I will tell you and we will discuss it together."

"Similar to the Land Law, we formulate a Debt Law, which clearly stipulates the rights of creditors and the obligations of debtors." "For example, creditors have the right to collect debts, and debtors have the obligation to pay debts, etc."

"In addition to establishing these common sense we have established in the form of laws, our government can also intervene to solve the problem of "debt slaves."

"First of all, it is stipulated that in all debt relationships, the interest calculated by an individual creditor on an individual debtor must not exceed a certain value, such as [-]% of the annual interest. Any interest exceeding this amount will not be recognized by the government."

“When a debtor is forced to repay an interest rate higher than that stipulated by law, he or she may apply for government intervention. The government may, depending on the circumstances, require the creditor to recalculate the interest, or it may advance the debt on behalf of the debtor and then transfer the debt to the government, and the debtor shall pay the debt to the government on a regular basis. The government will repay it.”

"This should basically solve the 'debt slave' problem, right?" Liu Xinqi finally asked everyone.

After hearing what Liu Xinqi said, Luo Cheng first raised an objection:
"In this case, the government will bear great economic pressure, advance a large amount of funds, occupy a lot of manpower and material resources, and the losses outweigh the gains. Moreover, it is possible that the debtor will default on the government's account."

Liu Xinqi replied:
"You are right, so what I just said is 'individual creditors versus individual debtors', collective versus collective, government versus collective, government versus individuals are not within the scope of this restriction and can be stipulated separately."

"For example, if the government repays creditors with annual interest, it will be calculated as [-]% or [-]% to the debtor. Calculate and ensure that this part of the profit can meet the manpower and material resources consumed by the government."

"As for individuals who owe money to the government, they should be arrested and repaid directly. When the time comes, the government will be more conscientious and give them a monthly salary that is in line with the market price. The debt will be deducted from the monthly salary. When the debt is paid off, the person will be released. "

Luo Cheng asked again: "What if it's gambling debts or something like that?"

Liu Xinqi replied:
"All gambling debts, fraudulent debts and other bad debts are not recognized by the government. And I plan to completely ban gambling within the jurisdiction of the Xinghan League, and all those who organize gambling will be arrested and imprisoned."

"Then let's try it. We still don't know how big the private debt is in Dengzhou and whether the government can sustain it." Luo Cheng finally said.

When Liu Xinqi saw that no one had any further opinions, he walked directly to Jiang Xue, first attached a one-star general card to him, and then said to him:
"You will be responsible for this matter. Just like Luzhin, you select your own personnel. I will first allocate 2 taels of silver to you as principal. I hope you can completely solve the problem of 'debt slaves'."

"Thank you, Sir, I will not give up even if I die." Jiang Xue happily followed the example of the two previous people and thanked him.

Then Liu Xinqi said to the people below: "Who still has it?"

The previous three precedents made everyone eager to give it a try, and their speeches became more active.However, the questions raised later were either made out of molehills or unanswerable, and no one was rewarded.

Seeing that the time was almost up, and everyone who was calling the clock had already called the twelfth hour, Liu Xinqi ended the discussion and asked everyone to go back and rest.

However, Luo Cheng did not leave with everyone, he stayed, and after everyone finished walking, he asked Liu Xinqi

"Why do you have to enact a law to solve the problem? Is it necessary for our small Dengzhou?"

Liu Xinqi looked at Luo Cheng and replied solemnly:

"Needed!"

"Not to mention that the scope of our Xinghan League's future jurisdiction will definitely not be limited to this small Dengzhou. The only thing is that the legal system is more fair than the rule of men, so it is necessary to legislate."

Luo Cheng continued to ask doubtfully: "Is your teacher a 'Legalist'?"

"He is a Confucian, but I think all schools of thought have their own strengths. I think 'Legalism' is more suitable than 'Confucianism' in governing a force."

(End of this chapter)