Chapter 306： Iron camp, running soldiers

The economic crisis of the capitalist world often comes and goes in a hurry. The first global economic crisis ended in early 1859.

By the end of 1858, Austria's gross domestic product had fallen by 29.7 percent compared with the previous year, the total economic volume had fallen by 17.3 percent, more than 3,000 bankrupt enterprises had been in operation, and the unemployed population had Break through the million mark ...

Franz finally understood why everyone was so scared of the economic crisis. The Vienna government actively took measures to deal with it, but the losses were still so great, let alone countries that did not take measures.

Of course, such a large loss in the Austrian economy is also directly related to the previous wild economic growth. The market value of the railway company fired by Franz even fell below one tenth of its peak.

The economic losses caused by the crisis are not just bad. Looking at the problem from another angle, this also means that Austria's industrialization is almost complete. This loss will only occur if the capitalist economy has developed to a certain extent.

If the capitalist economy does not develop, even if it encounters the economy, it will not be affected.

The Russian Empire next door is an example. Does the economic crisis have anything to do with them?

The worst losses in this economic crisis were in the United States and Austria. The United States was short of money because of the British withdrawal of funds, and the weak central government was completely at a loss.

Austria is naturally a frantic influx of capital and the aftermath of capitalists' blind investment. After the economic crisis, the market returned to rationality, which is not a bad thing.

At first glance at the economic report, Franz nodded with satisfaction.

In the absence of any experience to draw lessons from, the Vienna government's performance was qualified to come out of the economic crisis so quickly.

"My Majesty, the economic crisis has ended, and the world economy has begun to pick up. The Cabinet has decided to end its economic stimulus policy to prevent recurring blind investment."

In order to cope with the economic crisis, the government increased its investment in infrastructure. Our fiscal deficit in 1858 amounted to 280 million Aegis, which has seriously exceeded the government's financial capacity.

In order to reduce financial pressure, the government plans to reduce fiscal expenditure in the next three years and gradually reduce debt holdings of 30 million Aegis.

Projects that have already begun construction are continuing, and projects that are being planned and not yet under construction are all postponed. "

Infrastructure is also asking for money. As the biggest receiver in this economic crisis, the Vienna government also spent huge amounts of money.

Part of the funds raised from the issuance of bonds was used to take over the bad projects; part of the funds was invested in railway companies and industries related to the national economy and the people's livelihood.

The fiscal deficit of 280 million Aegis is spent. Two and a half years of fiscal revenue have become infrastructure projects and corporate equity.

The remaining part must be dedicated. Not all projects are bad, and the hold-up plan has caught many people.

As people continue to complete the project, the government naturally has to pay for the project. The Vienna government attaches great importance to credibility, and pays immediately after completion and acceptance.

The government is running out of money and naturally wants to cut costs. The first cut is in infrastructure investment.

This time the large-scale infrastructure construction is already equivalent to the usual ten-year investment, and it is naturally impossible to continue.

No matter how crazy it is, Franz cannot possibly spend twice as much financial revenue every year to invest in infrastructure construction.

In times of economic crisis, a wave of emergency response is okay. After the economic crisis is over, it is still necessary to give priority to economic benefits in infrastructure construction.

Franz thought for a while and said, "This is inevitable. Our total debt is already the fourth in the world, and we should indeed cut some.

At present, the infrastructure construction of important cities and towns in China has been covered. In the short term, there are no major required projects. Infrastructure construction can come to an end.

In the next two or three years, the government's fiscal pressure may be relatively large. After this time, the large amount of corporate equity we hold should generate revenue. "

When he said this, Franz himself was not confident. It is not false to generate income. Unfortunately, the largest amount of funds has entered the railway company, and this investment cannot see profits.

Unless, he now relaxes his policy and allows railway companies to abandon some of the less popular routes and only operate railways in bustling commercial areas.

Economically, it would be the most profitable to do so; politically, this is absolutely impossible.

Covering railways in every city in the country is not only for economic development, but also to strengthen the central government's control of the locality.

In this context, Franz can only say sorry to the speculators who were caught late. For the development of the country, the railway company must make a loss at first and do not aim at profit in the short term.

If the government did not bundle railway projects during the hot market period, and capitalists would build railways freely, it is estimated that there will be three or five railways running in prosperous areas in parallel, and there will not be one in economically backward provinces.

This has been proven in Britain and France. Railways without economic value will not be built at all, and economically prosperous areas are repeatedly constructed.

If only this pit is left, the problem is that many companies invested by the government belong to heavy industry, which are high-input, long-cycle, high-return investments.

In the short term, these enterprises will also need to expand production and promote technological innovation. Basically, no dividends can be seen. These investments are expected to make up for the long-term financial delay.

Of course, from the beginning, the Vienna government did not count on how much it could gain.

It is more important to provide enterprises with life-saving funds through government participation to keep these core industries.

This is equivalent to the current government's hardships, leaving a generous family base for subsequent governments. Such things can only happen in politically stable countries.

If the government changes the country frequently, it would be nice not to leave trouble for the next one, and also want to save them a family, dream!

This is also the reason why many countries have more and more government debt. Anyway, as long as they are happy this term, who cares about the successor of the successor?

One after another, the government was forced to become the spokesperson of money by the influence of the consortium.

An iron camp, a soldier in the water.

The monarchy is different. The cabinet government will change. The Emperor Franz cannot change, even if he wants to change his successor. Naturally, no one is allowed to sacrifice future development for immediate benefits.

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