Chapter 306 Iron Camp, Flowing Soldiers

Economic crises in the capitalist world often come and go in a hurry. The first global economic crisis finally came to an end in early 1859.

By the end of 1858, Austria's industrial output had dropped by 29.7 percent compared with the previous year, and its economic output had dropped by 17.3 percent. There were more than 3,000 bankrupt enterprises, and the unemployed population was at one point. Breaking the million mark...

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

Of course, such a huge 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 once fell below one-tenth of its peak.

The losses caused by the economic crisis are large, and it is not just a bad thing. Looking at the problem from another angle, this also means that the industrialization of Austria is almost complete. This loss occurs only when 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 two countries that suffered the most from this economic crisis are the United States and Austria. In the United States, because the British withdrew their funds, there was a shortage of money in the market, and the weak central government was completely at a loss.

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

After reading the economic report for the first time, Franz nodded with satisfaction.

In the absence of any experience to learn from, the Vienna government's performance is still qualified to be able to get out of the economic crisis so quickly.

Prime Minister Felix said: "Your Majesty, the economic crisis is over, and the world economy is starting to pick up. The Cabinet has decided to end the economic stimulus policy to avoid another frenzy of blind investment.

In response to this economic crisis, the government has increased investment in infrastructure. Our fiscal deficit in 1858 was as high as 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 its debt holdings by 30 million Aegis.

Projects that have already started construction continue, and projects that are under planning and those that have not yet been constructed will be postponed. "

Infrastructure also requires money. As the biggest takeover in this economic crisis, the Vienna government has also spent a huge amount of money.

Some of the funds raised by issuing bonds were used to take over unfinished projects; some were invested in railway companies and industries related to the national economy and people's livelihood.

The fiscal deficit of 280 million Aegis was spent. Two and a half years of fiscal revenue have all turned into infrastructure projects and corporate equity.

The remaining part will be earmarked for special use. Not all engineering projects are unfinished, and the stuck plan still traps a lot of people.

People are continuing to complete the project, and the government will naturally have to pay for the project. The Vienna government attaches great importance to credibility, and pays immediately after the completion and acceptance.

The government is running out of money, so naturally it has to cut expenses, and the first cut is on infrastructure investment.

The infrastructure construction this time is equivalent to ten years of investment in normal times, and it is naturally impossible to continue.

No matter how crazy Franz is, it is impossible for Franz to spend doubling his fiscal revenue every year and invest in infrastructure construction.

In times of economic crisis, a wave of emergency response is okay. After the economic crisis is over, economic benefits should still be prioritized in infrastructure construction.

Franz thought for a while and said: "It is inevitable, our total debt is already the fourth in the world, and we should indeed reduce some of it.

Now that the infrastructure construction of important cities and towns in China has been covered, there is no major necessary project in the short term, and the infrastructure construction can come to an end first.

In the next two to three years, the government's financial pressure may be relatively large. After this time, the large amount of corporate equity we hold in our hands should generate income. "

When he said this, Franz himself had no confidence. It is not false to generate income, but unfortunately the largest sum of money has entered the railway company, and there is no profit in this investment.

Unless, he now relaxes the policy, allowing railway companies to give up some unpopular lines and only operate railways in bustling commercial areas.

Economically, doing so is the most profitable; politically, this is absolutely impossible.

Covering the railways to every city in need is not only for economic development, but also for strengthening the central government's control over localities.

In this context, Franz can only say sorry to the speculators who were trapped in the later period. For the development of the country, the railway company must first operate at a loss, and not for the purpose of profit in the short term.

If it were not for the government to bundle railway projects and let the capitalists build railways freely, it is estimated that there will be three or five parallel railways in the prosperous areas, and there will not be one railway track in the economically backward provinces.

This has been proved in Britain and France. Railways without economic value will not be built at all, and a large number of repeated constructions in economically prosperous areas.

If there is only one pit, that’s fine. The problem is that many of the companies that the government has invested in are heavy industries, which are investments with high investment, long cycle and high returns.

In the short term, these enterprises will also expand production and promote technological innovation, and basically they will not see dividends, and expect these investments to make up for the financial

Indefinitely.

Of course, from the outset, the Vienna government did not expect much to gain from it.

More is still through the government's shareholding to provide enterprises with life-saving funds to keep these core industries.

This is equivalent to the current government living a miserable life, leaving a rich family for the subsequent government. This kind of thing can only happen in a politically stable country.

If the government changes frequently in countries, it would be good not to leave trouble to the next one. If you want to accumulate wealth for them, let’s dream!

This is also the reason why many countries have more and more government debts. Anyway, as long as they are happy this term, who cares about the life and death of their successors?

Sessions piled up, and in the end, the debt was high, and the government had to be influenced by the consortium and gradually became the spokesperson of money.

Iron camps, flowing soldiers.

The monarchy is different. The cabinet government will change. The emperor Franz cannot be changed. Even if he wants to change his successor, he will be his descendant. Naturally, no one will be allowed to sacrifice future development for immediate interests.