Go back in time and be a chaebol

Chapter 352 Economic Control

Chapter 352 Economic Control (Fourth update, please subscribe)

Although the collapse of the empire resulted in the confiscation of many patents that were prized by German companies. But not all technologies are easily available.

Krupp is one example. Perhaps the Allies could take away Krupp's patents and Krupp's machines, but they could not take away Krupp.

As early as the rise of Krupp, it established a highly effective production system and created the most advanced worker welfare system in Europe at the time.

Workers of Krupp Company have housing, medical and pension benefits. Even when an employee dies unexpectedly or loses his ability to work, his family can receive adequate living security from Krupp Company. Krupp built workers' residential areas with low rents, and also improved schools, parks, department stores, public baths and entertainment venues. Krupp successfully turned Essen into a state within a state.

The iron prime minister Bismarck was inspired by this workers' welfare system and later used it throughout Germany. From this point of view, if Krupp is compared to the father of social welfare, it is well deserved.

It is precisely because of this welfare system that Krupp workers are very loyal and they have worked at Krupp for generations. No matter in the past or now, no matter what difficulties Krupp encountered, the workers never abandoned Krupp. Similarly, the Krupp family passed on this concept to Krupp descendants. No matter what problems the workers encountered, Krupp did not abandon the workers.

Because of this, even in the most difficult years after the war, the Krupp people still did not abandon it. Of course, Krupp did not abandon the workers, even if Krupp was in prison, Krupp's Managers are still doing their best to restore production, hiring as many workers as possible, and even if they can't be hired, they will provide minimum relief and promise to hire them once things get better.

And that's why Borneo came to visit.

Because it does have some of the most advanced technologies of this era, open-pit coal mining and related technologies, but they are only part of it.

Li Yian has always been very jealous of the many industrial technologies that Krupp has mastered, but he had no intention of using real money to buy the technology. It's not that he is unwilling to pay, but that US dollars have many uses in this era. ah.

What's more, in Germany now, the U.S. dollar is very strong, but what's even stronger are supplies!

Now Borneo happens to be able to provide a lot of supplies, so after receiving the telegram from China, Zhao Xudong thought about it and simply traded canned fruits for technology.

Like all countries, Germans also like to eat sweets. However, due to lack of foreign exchange, the amount of sugar imported is almost zero. The country’s sugar supply is insufficient, and there are people who like to eat sweets. So in Germany right now, canned fruit can be substituted for almost everything!

In other times, this trick may not be effective.

But now, in this period of scarcity, canned fruit is enough to make everyone excited. After all, when winter comes, being able to eat a can of sweet canned fruit is enough for those who live in poverty and scarcity. Germans feel the happiness of life.

In fact, sometimes, happiness is so simple!

……

After waiting in line for more than an hour, Cheng Yuanshan finally met Liu Chengyu near noon.

"Cheng Chu, I heard that the trading company recently placed a big order with a domestic canning company?"

Liu Chengyu asked while reading the documents.

"Director, I am here to report this matter. Global Trading Company has placed a large order with 12 pineapple canneries, 65,000 tons of canned fruit!"

Cheng Yuanshan immediately replied.

"Sixty thousand tons?"

Liu Chengyu, who was looking down at the documents, then raised his head.

"This order is really not small. It should be bartered on a large scale."

"Yes, half of it is sent to Germany, and the other third is sent to France. It should be to replace equipment for coal mines."

Cheng Yuanshan answered immediately.

"Oh? Sixty thousand tons is indeed a lot. It is almost equivalent to half of the production capacity, right? Can it be delivered on time?"

Liu Chengyu nodded. As the director of the Ministry of International Trade and Industry, he has a basic understanding of the situation in various industries. The current annual output of canned goods in Borneo is about 12 tons.

The first problem with such a large order is definitely whether it can be delivered on time.

Cheng Yuanshan said:

"Yes, Chief, there is no problem with the production capacity of this order, but the company still encountered some difficulties, because the cans need to use tinplate, but this time the quantity is really too large, and the company cannot raise enough tinplate at the same time. Now Steel products are all under control, so we need help from the ministry to solve the problem."

"Controlled economy" is one of the characteristics of the Borneo economy. It is somewhat similar to the planned economy, but it is fundamentally different. This fully draws on the German experience. In addition to the establishment of the "Four-Year Planning Commission", it also established A series of economic regulation agencies are in charge of the economy and establish close ties with industry associations. Industry associations coordinate enterprise production. National production has careful plans. Enterprise production requires filling in a large number of forms. The state guarantees enterprise profits. Enterprises establish files on employees’ labor performance. Workers cannot change jobs at will, and companies cannot fire employees at will. In economic regulation, the most important link is the unified purchase and sale of some materials, and the exclusive purchase and sale of certain materials. Steel is one of the controlled commodities. This is because steel can be used in various industries and is a commodity in short supply.

Putting down the documents in his hands, Liu Chengyu raised his head, thought about it, and asked:

"How many do they need?"

"Judging from the figures reported by each factory, the gap is probably more than 1,500 tons!"

Cheng Yuanshan said.

"This group of profiteers, if there were so many gaps, they wouldn't have to produce."

The reason why Liu Chengyu said this is because tinplate is a very scarce material in the market, and factories often only have corresponding quotas, and the quotas are calculated based on production capacity. Because of the tight demand, there is naturally room for reselling. Many factories will try their best to obtain as many quotas as possible. If they cannot use them themselves, they can sell them at a high price in the market.

Frowning, Liu Chengyu continued:

“It’s hard for me to handle so much tinplate at once!”

Although I know the little calculations in the minds of profiteers. But there are some things that you can only turn a blind eye to.

"Chief, the key is that the buyer is pressing hard, and we came to the ministry for help because we had no other choice."

Cheng Yuanshan continued;

"This batch of canned orders is not only related to the purchase and transportation of coal mine and other equipment, but also related to the operation of the fruit company's plantations, so I think we should help them solve it!"

The former is a key project, while the latter is a key enterprise. In comparison, tinplate is almost worth mentioning.

After weighing for a moment, Liu Chengyu finally nodded.

"Twelve hundred tons!"

After directly reporting the number, he said.

"Twelve hundred tons, the most we can batch is this much!"

Even if it is 1,200 tons, at least one-third will flow into the black market!

The profit margins of those businessmen were still very large, and Liu Chengyu could only turn a blind eye to this.

This current predicament is unavoidable. The only thing we can look forward to is to wait until the second phase of the steel company's project is completed next year. By then, after the steel supply can meet basic needs, it will be almost possible to withdraw from control.

After all, control is never an end, just a means.

After pondering for a moment, Liu Chengyu said:

"Tell them, next year, next year, tinplate and the like will be enough!"

In fact, this is also a reminder to those profiteers not to hoard excess tinplate, otherwise they will definitely lose money next year.

As for whether they will listen to the advice, only God knows. But steel will definitely withdraw from control next year, after all, the newly added production capacity is there.

(End of this chapter)

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