The development of the colonies involved only a small part of the efforts of the Vienna government, and the focus was still on the country.

After the end of the war in the Near East, Austria's economic development should have declined, but the capitalist free economic market was often irrational.

The economy of the entire new Holy Roman Empire is like a runaway carriage, rushing all the way forward, and at this time the brakes can no longer be pulled, and you can only watch the carriage run farther and farther on the road of no return.

Government intervention in the market economy? Franz does not want to bear the pot that detonated the economic crisis yet, and he cannot afford it.

The overcapacity of the capitalist world as a whole determines that no matter what measures are taken, the economic crisis will erupt.

Measures can only prolong the onset of the crisis, and the longer the crisis erupts, the more destructive it becomes.

This is not a question of one country in the new Holy Roman Empire, but of all capitalist countries, and unless everyone intervenes in the market, it will be possible to survive the crisis smoothly.

Economic meeting at the Vienna Palace

Franz took out a document and handed it to everyone, and said solemnly: "This is the latest economic report, everyone read it carefully."

The situation of blind investment in our country is very serious, and many industries have overcapacity, and a large number of products have been backlogged.

In the short term, it is impossible to find a new market and absorb this excess capacity.

The newly developed Balkans and African colonization, although they consumed part of the production capacity.

However, the speed of new markets is far less than the madness of the domestic capital market.

Abroad, too, there are varying degrees of overcapacity in all major capitalist countries. At the moment, the situation is most serious in us and in the United States.

This is a risk that must be borne in the case of a large amount of foreign investment. Once the economic crisis breaks out, British and French capital will definitely withdraw funds from the market, and if we do not deal with it properly, the consequences will be very serious. ”

Chancellor of the Exchequer Karl said: "Your Majesty, we cannot directly interfere with the free flow of capital, and the best way now is to bring them to the real economy."

When capital becomes real estate such as factories, railways, and infrastructure, it is difficult for them to leave. ”

When capital becomes real estate, it is necessary to cut the meat if you want to leave the market, and these industries are worthless in times of economic crisis, and even cannot find buyers.

No one took over, and the capital invested in it was trapped by the market, and I want to untie it and wait for the economy to pick up!

However, once the economy recovers, many of these industries will become high-quality assets, and there is no need for capitalists to abandon these industries.

Prime Minister Felix frowned and said: "This will be too much trouble, allowing more foreign capital to invest in the real economy, and the situation of overcapacity will be more serious."

Even if this capital is retained, it will exacerbate the scale of the economic crisis, and the final harm will be borne by us. ”

Chancellor of the Exchequer Carr explained: "There are two sides to everything, and if you want to minimise the crisis, then it is best for them to invest in urban infrastructure.

For example, now we have promoted the urban safe drinking water project, the renovation of the drainage website, and the construction of urban roads......

There was no overcapacity in these industries, and there were more than three hundred cities in the new Holy Roman Empire. Because of government funding, we are only doing infrastructure renovation in big cities.

These areas can accommodate a large amount of capital, but once the economic crisis breaks out, the capitalists' capital chain will be broken, and there will be a large number of unfinished projects, which still need to be taken over by the government. ”

Felix asked with concern: "The takeover is a small problem, and the biggest problem is the construction of urban infrastructure, which has always been funded by the government, and these projects basically have no possibility of profit."

If you want capitalists to invest, you must first let them see the profit point. The city's safe drinking water project is just that, the waterworks can collect water fees, and what profit does other infrastructure rely on? ”

Chancellor of the Exchequer Karl explained: "Of course there is no profit point. The investment in infrastructure construction is too large, and most of the projects are public welfare in nature, and it is impossible to make money from the projects themselves.

Therefore, we must make a roundabout, for example: bidding from the public, the government only takes out a small part of the money in the early stage, and allows the capitalists to advance funds for construction, and then the project is completed and the project is accepted and the project payment is settled.

None of these projects could be completed in a short period of time, and the amount of investment was very large, and once the economic crisis broke out, the banks tightened their monetary system, and the economic chain of most of the capitalists was broken.

As long as it is stated in the contract that we will not pay the bill if there is an unfinished project, we can save a lot of money.

If the consortium behind these foreign investors is willing to inject capital to continue to complete these projects, then it will be the best.

The influx of new capital and the ability of these projects to continue construction will inevitably drive the economy of many industries, and the economic crisis will pass.

Anyway, the money for infrastructure construction will have to come out sooner or later, and we can survive an economic crisis smoothly, and we still make money. ”

Franz's eyes lit up, isn't this a copy of Roosevelt's New Economic Policy? It's just that the scale is not that large, and the initial basic starting point is not to survive the economic crisis, but to trap foreign capital.

That's right, it's trapped. Infrastructure projects, as long as the money is invested, are trapped. Don't expect the Vienna government to pay in advance until it's finished.

Either the capitalists and Austria will survive the economic crisis together; Either cut the meat and leave the market, and all the previous investments have been wasted.

In order to alleviate the damage caused by the economic crisis, pulling people into the water is the best option now. The worst-case scenario is nothing more than leaving a mess of the project, and the Vienna government is responsible for taking over.

Franz could have made the capitalists jump into the huge pit of railway construction before, but now they naturally don't care about letting them jump into the pit of infrastructure construction.

This cannot be regarded as a pit, in the period of normal economic development, it is a proper high-quality project, and there is no nature of any pitfall.

After thinking about it, Franz warned: "The plan is good, but you have to be careful to grasp that degree."

It is necessary to ensure that the winning bidders are powerful capitalists, and if a group of unrelated households get the project, we will be the ones who will be pitted in the end.

Retaining foreign capital is only a means, not an end, and our ultimate goal is to survive this economic crisis smoothly.

As it stands, there is a serious overproduction in the capitalist world, and the economic crisis has erupted, that is, the problem in the last two years.

If necessary, a margin system can be introduced. Let the capitalists who undertake these projects pay the project guarantee money first, and then repay it after the project is successfully completed. ”

The outbreak of the economic crisis, in addition to overcapacity, is also characterized by a lack of money in the market. Everyone's funds are concentrated in the hands of a small number of people, resulting in a lack of liquidity.

It was the gold standard, and it was impossible to issue a large amount of money. Unless the economic crisis is too severe to bear, Franz will not depreciate the currency.

Then it is very important to keep the capital in the country as much as possible, and the coercive means to regulate finance and prohibit the outflow of capital are the worst means.

If you are unable to change the rules, it is very necessary to follow the rules, and blindly breaking the rules will inevitably be counterattacked.

As a member of the system of rules, Franz did not think that it was appropriate for Austria to break the rules.

To retain foreign capital within the rules, in this case, Franz doesn't want the second generation of domestic nobles to run out to make trouble, if they have the strength, it's just that, and if they don't have the money, they don't want to run out to undertake projects, isn't it harmful to others and themselves?

This is not a joke, but a fact. The fact that a noble family is rich does not mean that every family member is rich, and many noble children can actually only get a small part of the property.

Land, titles, and core industries will not be divided, otherwise in a few generations, these families will decline.

The eldest son, who often inherits the family business, has enough assets to inherit and will not go out and mess around; The second sons, who do not have many assets, are often active in the gray area.

Franz has encountered a lot of this kind of dead boy. In the Great Revolution of 1848, I don't know how many aristocratic families, because of the death of these children, the family behind them was ruined.

After the incident, the major aristocratic families strengthened their binding force on their children, and most of the noble children who were active in their minds were brutally suppressed by their parents.

In recent years, they have all behaved relatively peacefully, after all, they have personally experienced the Great Revolution, one-third of the nobles in the country have lost their titles, half of the family has declined because of this, and everyone has a sense of awe.

Chancellor of the Exchequer Karl asked suspiciously: "Your Majesty, what is the guarantee system?" ”

It's not that he is ignorant, it's that there was no concept of a margin system at all in this era, and the earliest guarantee system would not appear until forty years later.

It's normal that you can't understand such an advanced concept. Everyone has become accustomed to Franz's active thinking, and he often proposes new ideas.

Franz explains: "It's as simple as asking the winning bidder to pay a sum of money that will act as a guarantee for the successful completion of the project.

Including labor wage payment guarantee, project quality guarantee, project normal completion guarantee. After the project is successfully completed and the workers' wages are settled, the government will return the guarantee in full. ”

Prime Minister Felix asked, "Your Majesty, isn't it the same that this money is deducted from the construction money?" ”

Franz shook his head and said: "It's different, deducting from the project money does not determine the financial strength of the capitalists.

They took the contract they signed with the government, went out to find a bank loan, and relied on the bank loan to complete the project.

If this is okay in normal times, it will not affect the normal progress of the project, but once there is an economic crisis, the situation is different when the bank shrinks the bank.

Our goal now is to retain foreign capital, not to create opportunities for some people to make a fortune, and once the project is completed, we will have to deal with the aftermath.

Charge a margin and our risk is minimized. If the capitalists do not want to bear this loss, then they have to tide over the difficulties with us. ”

It's a psychological problem, and the more capital you put into it, the harder it is for people to let go. The greater the trapped capital, the tighter the interests of the capitalists and Austria were bound.

In order to prevent the previous investment from being wasted, the capitalists can only allocate more funds to fill in the pit and ensure the normal progress of the project.