Chapter 68 Welfare for workers equals economic growth

Due to the strong demand of His Royal Highness the Crown Prince, the Imperial Government reacted quickly, and an investigation into the industrial restructuring of the Ruhr coal mines and the working and living conditions of the workers was immediately launched. After receiving the promise of the imperial government, the wave of strikes slowly began to dissipate. The efficiency of the imperial government was acceptable, and after investigation and evidence collection, it was found that enterprises that had squeezed and deceived workers were forced to compensate their workers and impose fines. Among them, enterprises with strict circumstances, poor operating conditions, and irregular management are merged and reorganized under the guidance of the government.

The impact of the strike came to an end after a series of measures took effect. Due to the quick and strong response of the government, and the fact that the previous trade agreement with Russia had reduced the price of food, the standard of living of industrial workers in Germany was not bad at this time. As a result, the strike action of coal miners did not spread to other industries, and the impact was limited. But if the standard of living of the workers cannot be improved, such a strike will definitely not be the last.

On May 31, the Privy Council of the Reich sitting, Jochen submitted his own "Labor Bill", requiring the Reich to implement an eight-hour working day, a single rest per week, a flexible wage system, a ban on the use of child labor, a restriction on the use of female workers, the right to holidays, paid leave, double pay for overtime during holidays, and a series of measures to improve the treatment of workers.

This caused a huge wave of opposition, and in the eyes of the Junker aristocracy and the bourgeoisie, giving so much favourable policy to the workers was undermining their interests. Jochen refuted this: "The basis of whether an entrepreneur can make a huge profit is not the meagre wages of the workers, but whether the goods he produces can be sold quickly and the funds can be quickly reproduced for reproduction." Whether the circulation of commodities is smooth and whether the operation of funds is reasonable is the basis for whether profits can be obtained. How do you make your products sell quickly? We need a vast market, but if people's overall purchasing power is not strong, then the market cannot function healthily. To increase the wages of the workers, in order to raise the standard of living, they will spend this money, then they will inevitably have to buy goods, and the goods will be sold smoothly, and the factories will inevitably get the funds, and with the funds they will be able to continue production. And the more profits the factories make, they must continue to improve the treatment of workers, and the better the treatment of workers, the more goods will naturally be consumed. In order to meet market demand, it is natural to increase production capacity, which in turn will provide more jobs. This creates a virtuous circle, rather than allowing factory owners to rack their brains to extract a little bit of wages from their workers. ”

"We can all understand what you're saying. However, Your Highness, shortening the working hours will naturally lead to a decrease in the number of products produced, and an increase in wages will increase the cost of production, as well as a series of benefits that you have proposed. This can make it difficult for the plant to operate. ”

"That's why you need to offer flexible wages. The 8-hour work is to guarantee the right of workers to a basic rest. But I believe that no one is willing to earn more wages to improve their lives, so although the rule is an 8-hour workday, there will also be workers who are willing to work overtime to earn overtime wages, and even prefer to give up vacation for double wages, so the shortening of working hours is not strict. And if incentives are introduced to increase workers' motivation to work, the increase in efficiency can offset the reduction in time. Bonuses or performance wages are provided on top of the basic salary, and workers need to work harder in order to get bonuses, so although they pay more money, the improvement of efficiency and yield can reduce production costs. You can still make high profits, workers are better treated, and the demands of both sides are met. ”

"Then may I ask Your Highness, what are the considerations for paid leave?" The bourgeoisie said that they could accept Jochen's explanation, after all, they were pursuing higher profits, and if Jochen's set really worked, then naturally there was no need for them to make too much trouble with the entire working class for a little petty profit, and if they were given a strike, then the profits lost would not be comparable to paying a little wages and benefits.

"Quite simply, the workers have money in their hands, so naturally you have to give them the opportunity to spend their money. I usually go home to rest after work, and even if I have one day off every week, naturally not too many people are willing to go outside after a tiring day. So what if we give them a paid 2-3 days off? Suppose a worker, with a whole family, would face such a vacation when he had enough money? Take the whole family out with you, buy a new dress for your wife, buy a new toy for your children, go to a good lunch together, then go to a show, and then go to work in a better spirit after feeling the warmth of family and the relaxation of the spirit. This is the role of the holiday, to expand the consumer market, promote the circulation of goods, and improve the level of the economy. The Empire's home market still has great potential, and the acceleration of urbanization, the increase in population, and the improvement of people's living standards are all opportunities for the expansion of the Empire's home market. We now have a very good condition, that is, the price of our food has decreased, so the people have less input into the most basic requirement of eating, and they can have more spare money to spend on better enjoyment of life. And what we have to do is give them more money to spend on our goods. ”

"As for the prohibition of child labour and the restriction of the use of female labour, it is also from a long-term perspective. First of all, it is difficult for both child and female workers to achieve the same efficiency as male workers in industrial production of heavy labor. The implementation of the new wage system will result in less remuneration for their labor, which will be detrimental to both them and the factory. Moreover, education is now universal in our country, and children can go to school, gain more knowledge, and when they grow up, they can create wealth for society far greater than using their thin bodies to do physical labor. So instead of squeezing their low work ability, it is better to give them better opportunities to grow. The same is true for women workers, who are not suitable for the physical work of heavy industry, but they are needed in light industry and in the service industry, so the rational arrangement of women workers to maximize their labor capacity is also the reason for restricting the use of female workers. ”

For most of the bourgeoisie, Jochen's statement is understandable and acceptable. However, for Bismarck, who had devoted his life to fighting against the Social Democrats, such an act was a compromise with the Social Democrats, so he was resolutely opposed. "Your Highness, I strongly advise you not to take this step, and would like to ask you to throw these texts into the trash right now. Now the propertied people are indignant, and the gangsters are ready to move, and we cannot compromise. ”

"Then may I ask Your Excellency Prime Minister, can you give us a better way to solve social contradictions, reduce unemployment, stimulate market consumption, and increase economic growth? Or are you prepared to settle a problem with iron and blood when a turmoil is inevitable? Johen asked. In the Reichstag elections of February 20, 1890, the Social Democrats won 1.43 million votes and 35 seats in Parliament, while Bismarck's liberals and conservatives were defeated, and the Social Democrats became the most powerful force in the Reichstag. In this regard, Bismarck once moved the idea of a coup d'Γ©tat, and even hinted to Wilhelm II: "It is difficult to continue without bloodshed...... The later you start, the more brutal things will become. "It's just that Wilhelm II refused." The development of the empire requires the expansion of the market and the increase in the circulation of goods, and if the bourgeoisie says it is acceptable, then my plan is feasible. And if you can't come up with a better economic policy, please don't oppose my economic policy. "Anyway, the relationship between everyone is not good, and there is no need for Jochen to be polite to Bismarck, and he has not torn his face and accused Bismarck of not understanding the economy, which is quite face-saving. Moreover, Bismarck's good days were coming to an end, and Frederick III had already expressed his desire to change prime ministers in front of Jochen more than once. For the enlightened Frederick, the general strike was also his idea to improve the living standards of the people, and with Jochen's theory that expanding the circulation of goods could lead to economic growth, the emperor's determination to pursue this policy was not met with much resistance. If Bismarck tried to use his mantis arm as a car, he would definitely end up being crushed by the wheels.

Bismarck could also realize this, and if he threatened to resign again, Frederick III would not mind pushing himself down. Therefore, this time there was no such thing as a tough attitude towards Wilhelm II in history. He refused to sign Wilhelm II's Labour Protection Act, which could not be put into force, and joined forces with envoys from the Princes of Saxony and Bavaria, announcing that if the princes of the states agreed to the Labour Protection Act, he would resign. This trick was tried and tested repeatedly against William I, and Wilhelm II could only humbly say: "My insignificant experience is far from being comparable to that of your highness, who has experienced many vicissitudes" (Note 1)

As a result, Jochen's proposal was successful, and the government began to convene economists and sociologists, bourgeois factory owners, and, at Jochen's request, invited the leaders of the guilds to begin a discussion and plan on the treatment and working arrangements of the German workers, which would be implemented first in the state-owned enterprises. When state-owned enterprises show the advantages of this set of policies, even the most stubborn capitalists must change their systems with the general trend. But Jochen set a bottom line for planners: "We can't give workers a welfare system that is high enough to cultivate laziness, and insist that those who don't work can't eat." After all, a series of problems such as the European financial crisis in Jochen's previous life and the bankruptcy of the Greek government's welfare system are in the final analysis because social welfare is too good, and people can enjoy good living conditions even if they don't work, and when the government has to reduce social welfare in the face of the financial crisis, this person begins to oppose the government and preach to protect "their own reasonable rights and interests". As the saying goes, Bismarck was right in one sentence: "Blind accommodation will make the people's greed endless." And Yoheng wants to avoid overkill by policymakers, who are too lenient. Although this is not very likely for the social environment at this time, it is better to be careful.

Promoting the circulation of goods, expanding the domestic market, and improving the people's living standards will greatly alleviate the social contradictions in Germany, and the people will live and work in peace and contentment, which will naturally not cause social turmoil. But this was not enough, and Jochen, like Bismarck, had to guard against the expansion of the Social Democrats.

Note 1: Bismarck had the title of Prince of Prussia, so there was no problem with being called His Highness. And Jochen only called His Excellency the Chancellor because he did not have an advantage in the title, and the Crown Prince of Germany was also a princely title. Therefore, to call him His Excellency the Prime Minister is to use the title of position to avoid being suppressed by Bismarck.