The Imperial Age with the Resurgence of Han Style

Chapter 297: New Management Theory

"…In the Guanzi, Chapter 80, it is mentioned that the high poles and firewood ponds are used to attract cattle and horses from all over the world and reduce the people's income. As the Dao Ruo Mi says, where things grow is not as good as where they gather. In the current situation of Qi, we should earnestly improve people's livelihood. While expanding the export of goods, we should also strive to enhance the role of people's demand in driving economic growth. Therefore, in the distribution of national wealth, necessary adjustments should be made to gradually increase the proportion of people's income in the distribution of the entire national income. In other words, the workers' labor wages should be increased accordingly so that they can have more spare energy for commodity consumption and material enjoyment."

On August 1732, 8, a lively book distribution conference was being held in the Oriental Building, a landmark building in Daxing. The New Theory of Pipe, compiled by the famous economist and writer Qi Yuanhan, was officially finalized and published, attracting many domestic scholars, literati, big businessmen, and factory owners to gather together to debate and discuss the views and theories in the book.

As the name suggests, "New Guanzi" is modeled after the pre-Qin economic work "Guanzi". It systematically expounds on various economic phenomena and problems that have emerged in Qi and the world as a whole, including the process of capital generation, the evolution and development of production relations, the production and distribution of wealth, as well as exploring the operating laws of economic activities and the growth mode of capital. At the same time, it also examines and describes the interdependence and complex contradictions between various social classes from an economic perspective.

This epic work aims to tell people what economy is, what wealth is, how wealth is constituted, what are the ways and methods to increase wealth, and how to protect this wealth.

This book abandons the mercantilism doctrine that has long been popular in Europe, and even negates the traditional Chinese policy of "promoting agriculture and suppressing commerce". It believes that land is not the main source of value, puts forward the fundamental importance of labor and technological innovation, emphasizes that the division of labor will lead to a substantial increase in social production, and criticizes the corrupt and arbitrary political restrictions that hinder industrial development in China and European countries.

However, the book's greatest contribution to economic theory is not the division of labor, not the distribution of wealth, not the understanding of institutional issues, nor the fiscal ideas contained therein, but the "economic liberalism" that Qi State constantly pursued and promoted.

In other words, the theoretical wealth of "New Management Theory" does not lie in a specific theory, but in the fact that it provides a belief, an idea, or a faith, which is "economic freedom" and the "freedom of trade" derived from it.

In detail, many of the viewpoints discussed in this book are not original to the author, nor are they very forward-looking. They are basically all well-documented by predecessors, or are the common understanding of the entire era. Its greatest contribution is nothing more than a collection of these ideas, and there are even some errors and logical flaws in it.

However, after the book was published, no one would really deny the important value and significance of this "New Management Theory" in the economic field.

Before Qi Yuanhan compiled this book, although there were many bright stars in Qi's economics or business circles, they were not enough to illuminate the entire world of economics.

The political economy system of "New Management Theory" was established by integrating almost all the economic science knowledge of this period.

Through this book, not only the concept of economic freedom was established, but also the most appropriate mechanism for its operation was found, that is: to take advantage of people's trading tendencies and let everything "compete freely" through the market mechanism.

Privileges and monopolies are the biggest enemies of free competition. The New Management Theory advocates the abolition of all forms of privileges and monopoly management. Good management can only be established through free and universal competition. Because only in this way will individuals or enterprises adopt the most appropriate management methods for profit, and the labor productivity of factories will be forced to improve.

"Since we are advocating free competition, then isn't it unnecessary for the government to interfere too much? For example, those of us who run factories and trading companies, in addition to paying various taxes, are we the ones who have the final say on how to operate and manage? How to employ people, how much salary to pay, how many working hours to require, and whether to fire unqualified workers are all up to us. The government should not interfere too much and restrict us, right?"

"No, no!" Qi Yuanhan smiled and shook his head after hearing this. "Qin's former light and heavy family Gui Yi once said that those who have extra wealth but no extra carriages should be blamed on the nobles; those who have enough and do not bribe their friends should be blamed on the officials. If this is the case, then everything will be connected, and if everything is connected, then everything will be prosperous, and if everything is prosperous, then everything will be cheap, and if everything is cheap, then everything can be used. All governments must use politics to intervene in the economy, regulate the market, balance the interests of all kinds of people, and protect the basic survival of the people. If the skin is gone, where will the hair be attached? If the workers are in dire straits and have no extra money at home, who will you sell the goods produced by your factories to? To put it another way, if the factory owners and workers are allowed to handle their own affairs, how can the workers, who are in a weak position, fight for their own rights and interests?"

"You must know that a person always needs to live by his labor. Therefore, his salary must at least be able to maintain his basic survival. In most cases, they should be a little more, otherwise, he will not be able to raise his wife and children and maintain family life. Without sufficient salary, the group of workers will die out, and the factory will become a water without source and a tree without roots. Generous remuneration is an inevitable result and a natural symbol of the growing national wealth. On the other hand, the hard life of poor workers is a natural symbol of national stagnation and economic difficulties, and the hunger of workers is a natural symbol of the rapid decline of the country. The defeat of the Mongols and the collapse of the former Ming Dynasty should serve as a lesson!"

"Be taught, be taught!"

"…Since the book believes that the market needs absolute free competition and the elimination of all forms of privileges and monopoly, then what does Sir Qi think of the many franchised companies in China?"

"In Guanzi Quanxiu, it is said that teachings will become customs and punishments will be reduced. This sentence is not only applicable to politics, but also to economics. In the past, Guan Zhong encouraged people to improve the quality of bows and arrows by rewarding those who hunted high-flying swans and pheasants. This is really a lesson without words!" Qi Yuanhan stroked his beard and said slowly: "Giving full play to the role of the market driven by free competition does not mean that the government will let it go and let it do whatever it wants. Practice has proved that the free competition market also has its limitations and lags. The market mechanism relies on the law of value and the relationship between supply and demand to spontaneously regulate the economy. , itself has a certain degree of blindness. For example, the water supply, firewood and charcoal burning, construction and maintenance of sewer pipes, street cleaning, public road construction, etc., if these special industries are completely left to free market competition, then it is inevitable that no one will care about these industries, or the products and services provided will be priced too high for countless people to afford. Therefore, these businesses related to people's livelihood must be granted a monopoly by the government and provided with corresponding financial support, so as to better bring better livelihood benefits to millions of people in the empire. "

"Lord Qi, we have no objection to the government designating industries related to people's livelihood and welfare as monopolies and granting them special operating rights. However, in my Qi country, there are many profitable industries or industry fields that are granted monopoly rights by the government to a few companies, prohibiting ordinary individuals and trading companies from entering. For example, the Hanzhou Mining Joint Company, the Qianzhou (now South Africa) Mining Joint Company, the Mediterranean Trading Company, and the Egyptian Suez Railway Company are all arbitrary monopolies. Why is this?"

"Haha..." Qi Yuanhan couldn't help but smile upon hearing this, and said softly: "Everyone, do you think the above companies are all ordinary? Whether it is the Hanzhou United Mining Company, the Qianzhou United Mining Company, or the Suez Railway Company, which one does not undertake certain exclusive functions of the government? Therefore, we might as well regard these monopoly companies as the extension of the government's hand, and cannot confuse them with ordinary companies that are fully and freely competing in the market. According to "Guan Zi", the government realizes the monopoly of some strategic resources through the strategy of channel expansion, pleasing the world, like inexhaustible water, nourishing all people."

"..."

At a certain moment, Qi Yuanhan felt that he was Zhuge Kongming, the debater with a feather fan and a green turban, who could resolve and refute many doubts and objections one by one in the midst of conversation, making himself the absolute protagonist of the entire venue, dazzling and brilliant.

Qi Yuanhan was born in the first year of Shaoning (1686). Although he was also a descendant of Taizu and had a baron title, according to seniority, he was still the uncle of the current Emperor Yonglong. However, as time passed, the blood relationship between him and His Majesty had become very weak, and he could only be regarded as a royal relative with a slight connection. However, Qi Yuanhan was smart and studious since childhood, especially interested in economics and mathematics. In the seventeenth year of Shaoning (1703), he entered the Imperial University.

While in college, he met Song Shuwen, an economics professor who had a profound influence on him. The traditional Chinese ethics, law, and economics that Song taught laid a solid foundation for his achievements in these fields.

In the third year of Taiping (1707), after graduating from the Imperial University, Qi Yuanhan stayed on as a university lecturer, teaching economics and advocating the theory of free trade.

In the 1715th year of Taiping (), Qi Yuanhan was hired as a professor of economics at Daxing Southeast University. He worked in this position for ten years. During this period, he published more than articles on economic theory and became a well-known professor of economics in China.

It was during this period that he came up with the idea of ​​writing a monograph that would bring together all his economic knowledge. To this end, he resigned from his position as a professor at Southeast University, returned to Chang'an, lived in semi-seclusion in the manor left by his ancestors, and began to devote himself to writing the book "New Management Theory".

After hearing about it, Emperor Taiping praised Qi Yuanhan's book-writing behavior, and gave him 20,000 yuan in financial support in the name of the royal family. He also opened the royal library to him without limit and lent him various books in the royal collection as reference materials for his book-writing, including a large number of records and administrative records of Emperor Taizu and Emperor Taizong.

After seven years of repeated polishing, "New Pipe Theory" was officially published in August this year, which immediately aroused strong response from people from all walks of life and achieved huge success.

The first edition of 5,000 copies was sold out within a week, and now we are preparing to publish the second edition of 30,000 copies as quickly as possible.

It is said that Emperor Yonglong and the Prime Minister of the Cabinet immediately bought a copy of the first edition of the book after it was released, placed it on their desks, and read it day and night.

During this era, Qi's vigorous industrial revolution was nearing its end. Qi had established a large-scale industrial model based on steam power, and had already taken the leading position in the world. It was also far ahead in the international political and economic competition.

With the continuous development and expansion of overseas trade, countless trading companies were established one after another, and many cities such as Jianye, Weihai, Daxing, Guizhou, and Guangning quickly became international trade centers or regional trade centers.

In order to market its massive industrial products around the world, the State of Qi has been advocating free trade, demanding that all countries break down various trade barriers and restrictions and allow goods to be traded and flow freely without any hindrance.

In the country, the emerging industrial and commercial class is in a state of barbaric and disorderly development amid the surging economic tide. While desperately exploiting workers and seizing the value of their labor, it is also generating many social problems.

Decades ago, physicists in Qi had discovered the law of universal gravitation that unified the physical world. Correspondingly, experts in other disciplines, including moralists, economists, and sociologists, also wanted to propose several theorems in a similar way, trying to unify the operating principles in their respective fields in the same way. This principle can enable people to distinguish right from wrong and choose the right actions. Such actions will choose between self-interest and altruism, establish a perfect balance, and contribute to the welfare and stability of the entire society.

The publication of "New Management Theory" is considered to be a basic "theorem" in the economic field, which will guide and lead economic behavior to develop in the right direction. It is like an economics textbook written for the country, revealing the laws of economic operation.

"The book "New Management Theory" will become a symbol of the formation of the specialized discipline of economics, and the author of the book will become its founder."

"Qi Yuanhan will join the ranks of literary masters with his book New Theory of Management!"

"The New Management Theory will thoroughly establish the dominant position of free competition in the market, and will thereby change the entire Qi State and even the entire world!"

"..."

"Under the market economy, the real source of national wealth lies in the creativity of the people, and ensuring the creativity and creative spirit of the people has always been the fundamental responsibility of the government in economic and political governance." Qi Yuanhan stood on the podium, full of vigor and enthusiasm, and said, "The key to the economy lies in two goals: first, to provide the people with sufficient income or livelihood, or more accurately, to enable the people to provide such income or livelihood for themselves; second, to provide the country with sufficient income so that government affairs can be carried out."

"In short, the purpose of the economy is to enrich the country and the people!"

(End of this chapter)