Expedition to Europe

What should the government do if it has no money?

The East and the West have completely different practices.

The West is used to borrowing money, and when it has no money, it will go to those rich people to borrow. Of course, it will be repaid and a certain amount of interest will be paid at the same time. In this way, the government can be maintained, and because of the existence of the loan relationship, the rich people with economic strength can support the government to avoid losing all their money, forming a good cycle.

It is for this reason that although some economic giants in the West do not get involved in politics, they never lack spokespersons in politics, and their influence is everywhere.

For example, old Renault is such a person.

The East is more straightforward. When the government has no money, it will increase taxes, or find a "fat pig" with a bad reputation to slaughter, which can not only maintain the government's rule, but also kill the chicken to scare the monkey, calm the public anger and divert social contradictions, which can be said to kill several birds with one stone.

The difference between these two practices is huge, basically the difference between "fishing in a dry pond" and "a steady stream of water", which is clear and obvious.

Gaspard's meaning is very clear, that is, he hopes that his employer Qin Zhiyuan will be a person like old Renault.

But Gaspard overlooked one issue, which is the relationship between Qin Zhiyuan and Leiting City.

Strictly speaking, Leiting City is also an asset in Qin Zhiyuan's hands. Qin Zhiyuan's use of money to subsidize Leiting City is equivalent to using high-quality assets in his hands to subsidize low-quality assets.

This is fundamentally different from the relationship between old Renault and the Paris City Government.

Gaspard obviously has his own views on this issue.

"No, no, no... absolutely not! Even if the general is the king of Corsica, the general should not use his own money to subsidize government operations. That will breed the government's inertia and make them lose their enterprising spirit. In the future, they will develop a habit of coming to the general to solve any problems instead of stimulating their own potential to solve problems. This is definitely not a good choice." Gaspard shook his head like a drum, his attitude was firm, and there was no room for maneuver.

"There is no essential difference. Whether it is the securities in your hands or the LLL company on my side, they are essentially Mr. Qin's money. At present, it seems that Thunder City and Trident City need certain financial subsidies, but in the long run, Thunder City and Trident City will have their own hematopoietic mechanisms in the future, and the profits generated by then will also belong to Mr. Qin. What does it matter?" Huang Fugui pretended to argue to the end.

It seems that Huang Fugui is also constantly improving, otherwise Huang Fugui would not understand the meaning of the terms "financial subsidies" and "hematopoietic mechanisms", let alone be able to use them skillfully.

This is also easy to understand. No matter what these men are like, Qin Zhiyuan is always making great strides. If they can keep up with Qin Zhiyuan's pace, Huang Fugui and others can always be Qin Zhiyuan's confidants. Once you slack off and sleep on your merits, you will definitely be replaced by people who are well prepared. Countless Huang Fugui and Gaspard are waiting for opportunities.

"You didn't understand what I meant. I'm not saying no, but I'm saying that we can't provide help without principles. Look at Thunder City and Trident City objectively. They are both in the process of development. As decision-makers, or as rulers, what we should do is not to forcibly interfere with the development of Thunder City and Trident City, but to provide the necessary environment and policy support, so that they can complete this transformation process themselves." Gaspard is quite experienced in social operations.

"Then I think giving financial subsidies is policy support." Huang Fugui refused to give in.

Since Gaspard joined Qin Zhiyuan, Huang Fugui has a clear sense of crisis.

Before, Qin Zhiyuan's men were a group of warriors who only knew how to carry guns and fight. Huang Fugui was a rare scholar. Although his status was not as important as Chen Kangjian and others, he was also an indispensable figure. Gaspard's arrival sounded the alarm for Huang Fugui. If he couldn't make further progress, it would be sooner or later that he would be eliminated.

Huang Fugui didn't want to be eliminated.

Huang Fugui had a feeling that as long as he followed Qin Zhiyuan closely, his life might reach a height that he could never dream of.

"Yes, subsidies are indeed possible, but this subsidy must be limited in time and scale. Even if Thunder City and Trident City have their own hematopoietic mechanism in the future, the general should not ask for it unlimitedly. In short, in a mature social system, the rulers cannot interfere too much in social operations, but should protect the normal development of society." Gaspard talked freely.

What Gaspard said was the economic operation method that has been proven to be effective in the past century, that is, the so-called "free economy". Free economy is similar to the "non-action" in the ancient Chinese Laozi and Zhuangzi thought. It advocates that the economy should be freely regulated by the market, and "free balance" is the core idea.

Although free economy has been proven to be effective, it is an economic thought born in the Victorian era after all. It is no longer appropriate to continue to worship it as a classic.

If the original historical development law is followed, after the world war, there will be a five-year "Great Depression" starting from the 1930s, and then state capitalism will come into being.

Qin Zhiyuan is now implementing large-scale construction on Corsica, which is actually using the power of state capitalism. This is similar to "Keynesian economics" which will be born more than ten years later, but it is not exactly the same.

Huang Fugui has learned some superficial knowledge of economics now, and cannot be compared with Gaspard. But in front of Qin Zhiyuan, Gaspard's economic proposition seems to lag behind.

This work is compiled and uploaded by Liujiu Book Bar~~

"There is no need to discuss this issue too much. One thing must be made clear. In Thunder City and Trident City, the municipal government cannot let the economy run its course. Key enterprises and industries related to the national economy and people's livelihood must be under the control of the municipal government. "The private economy can be an effective supplement to the social economy, but it can never dominate the market economy," Qin Zhiyuan has experience.

Whether it is "state capitalism" or "liberal capitalism", the fundamental purpose is to promote social and economic development. “State capitalism” may have performed a little better than “ownership capitalism”, but it has not yet reached a sky-breaking level.

When "Keynesian Theory" was first born, it was regarded as the "Bible" by economists from all over the world. The "macroeconomics" he founded, the "psychoanalysis" created by Freud, and the "theory of relativity" discovered by Einstein are known as the three major revolutions in human knowledge in the twentieth century.

In the 1960s and 1970s, "Keynesian Theory" indeed guided the golden period of economic development in Western society, but his "inflation" method also caused large-scale inflation in the 1970s.

Qin Zhiyuan's ideal economic model is a market economy model under the guidance of the state, which is somewhat similar to China after "reform to the outside world."

This model may have slowed economic growth at the beginning because the government's burden was too heavy, but as time goes by, the advantages of this model will become more and more obvious, and compared with the advantages of the Western economic system dominated by the private economy It will get bigger and bigger.

In fact, before Qin Zhiyuan's accident in another time and space, China's advantages of "concentrating efforts to do big things" had been fully demonstrated, and its coordination and utilization of social resources were unmatched by Western governments.