Holy Roman Empire

1879 was a turning year for the whole world. Both politics and economy were affected by the Prussian war.

Affected by the tense situation in Europe, both France and Austria stared hard at the European continent and did not go out to do anything. The British only stepped in South America, and their main energy was also focused on the European continent.

None of the three big hooligans is doing anything, let alone other countries.

These days, the political sensitivities of the colonial empires are very high. The situation in the European continent is tense and not focused on the mainland. What if the situation gets out of control?

The colonial empire didn't do anything. It is undoubtedly good news for those independent nations that are not ready to fall asleep. They can finally live a few days comfortably.

The Russian-Prussian War started, and even the conflicts between Britain, France, and Austria were suppressed. For the common good, the three major powers stood together early.

Of course, this alliance of interests is not reliable. Once major changes occur in the international situation or the power of the three countries is unbalanced, this alliance may collapse at any time.

If the impact of the Prussian-Russian war on the international situation is more after the war, then the impact on the world economy will be immediate.

There are many affected industries, affecting almost every field, among which agriculture, manufacturing, finance, and service industries enjoy the largest dividends.

In the capitalist economic world, a new round of prosperity has begun. The most typical example is the disappearance of the agricultural crisis, the excess production capacity no longer exists, and the booming economy has directly promoted the development of the financial and service industries.

Although the war has just begun, the biggest dividends brought by the war have not yet fully erupted, but the capitalists are full of confidence.

A lot of hot money has poured into the market, and the economic environment suddenly improved. Job advertisements can be seen in the streets and alleys. In war-related areas, workers' wages have all risen slightly.

According to statistics, Austria ’s new investment in November alone amounted to 160 million Aegis, an increase of 76.44% over the same period last year.

Most of this capital has flowed into the manufacturing industry, and factories have risen up. Obviously, investors are very optimistic about this opportunity.

Not only Austria, but the entire European continent. Capital is like crazy, constantly pouring into all walks of life, wanting to take a share in the Pu-Russian war.

Looking at the statistical data, Franz frowned, "The market is too hot now, and although the consumption of war is large, there are some wallets in the two countries.

Neither Britain, France, nor us will provide them with unlimited funding. Before long, a new round of overcapacity will erupt, and the European economy may be lamenting after the war. "

The Minister of Economic Affairs Reinhard Haldergen explained: "Your Majesty, this is an inevitable law of economic development. In the previous wars, many people have made a fortune, they have been blinded by their interests and ignored. Risk exists.

This is true not only domestically, but throughout the European world. According to estimates by economic experts, in the past two months, new European investment has increased by at least 50% compared to the same period last year.

Overcapacity after the war will become a common problem for European countries. This is a huge trouble, but also a huge opportunity.

As long as we seize this opportunity, we can take the opportunity to crush the French manufacturing industry and weaken this biggest competitor. "

There is no anti-dumping argument these days, and free trade is the mainstream of the times. The French still did not resist the pressure and joined the free trade system six months ago.

The core of "free trade" is that the government lifts restrictions and impediments to import and export trade, cancels various privileges and preferences for domestic import and export goods, enables goods to be imported and exported freely, and competes freely in domestic and foreign markets.

On the surface, it is good for everyone. It can have a global market at the same time, clearing the obstacles to the circulation of goods.

In fact, there is a gap between enterprises and enterprises, and between countries, and this gap is directly reflected in market competitiveness.

There is no doubt that France, which lacks resources, is at a disadvantage in this round of competition. The import of raw materials directly raises production costs.

In order to cut costs, capitalists naturally want to lower the wages of workers, and the influx of cheap labor in Italy has created favorable conditions for lowering wages.

In the last ten years, per capita wages in Europe have increased by 23.8%, while per capita wages in Greater France have increased by only 5.4%.

In this context, the conflict between French and Italian people is naturally endless, even if the Paris government tried to suppress it, it still had little effect.

It is regrettable that even if labor wages are reduced, the international competitiveness of most French industrial and commercial products is still not high.

No way, who makes labor costs cheap these days? Except for labor-intensive industries, the labor cost of most industrial and commercial products is less than one fifth of the total cost, or even less.

Occupying the bulk of production costs is the industrial raw materials. Without solving the problems at the source, how to improve market competitiveness?

The market as a whole, while reducing labor costs, has also weakened the market's purchasing power.

Although Greater France has a population of 60 million, the market consumption power cannot keep up with the John Cow, which has only over 30 million people.

The market's consumption power is not working, and it is fed back to industrial production, forcing companies to produce cheaper goods. This is a vicious economic cycle.

Taking coal as an example, the French industrial coal cost is 1.3 times that of Austria, and in some inland areas it is even more than 2 times.

This is just the beginning. High coal prices lead to rising power generation costs, which in turn leads to higher electricity bills. High electricity prices are undoubtedly the biggest obstacle to the promotion of electricity.

Slowly step by step, electricity has not been promoted, and naturally electric machinery cannot be talked about.

Affected by this, the upstream electrical machinery equipment manufacturers have limited development and are unable to invest in more advanced equipment, gradually falling behind in international competition.

Downstream equipment users, because they did not adopt the most advanced productivity in a timely manner, were overtaken or even eliminated by competitors in the market.

In this age of weak meat and strong food, backwardness will be beaten. The French military strength is strong enough, no one hits them for no reason, but the economy is different. Everyone is a competitor.

As long as it can defeat competitors, it is naturally worth paying some price. Under the free trade system, large-scale overcapacity appears, and countries will have to fight for industrial strength.

In this regard, the Vienna government is confident, and Franz is confident. Because Austria's infrastructure construction was a complete king of its time.

Not only is transportation developed, it is also the first country to popularize electricity in Europe, and it is also the birthplace of the second industrial revolution. Emerging industries are at the forefront of the world.

In this respect, the British Olympics are two extremes, one focusing on emerging areas and the other focusing on traditional industries, which have become industry hegemons. This has created favorable conditions for cooperation between the two countries.

Franz: "That being the case, let the crisis be even more violent! It is best to destroy it together with the manufacturing industry in Europe and the United States, as the clearance before the curtain opens.

This time, you can work with British capitalists to let private companies take the lead and not directly drag the government into it. Once the Russian-Prussian War ended, they launched together to set off this capital war. "

War without gunpowder can sometimes be even more brutal. The damage caused is no less weak than a war.

It is conceivable that it will not be long before unemployment and bankruptcy will once again become a hot topic in society.

After a moment of contemplation, Reinhard Hardegen, Minister of Economy: "As long as it is a country that has joined the free trade system, it is easy to do.

The United States of America has some difficulties, they still stubbornly implement protectionist policies, and it is very difficult to pry open their door. "

learn from mistakes. American capitalists have been scourged by British capital several times, and now frightened, they just shut the door and play for themselves.

Anyway, because of its own abundant resources, the technology of the European countries directly copying the country, in addition to its own market is a bit smaller, life is pretty good.

Franz: "The issue is with the Foreign Ministry. The British are a pioneer when it comes to promoting free trade.

Everyone can join forces to put pressure on the United States, and they will be half their own. If they are stubborn, then it is not necessary to be polite.

Since they want to play trade protection, simply let them play. The international embargo is a good choice. "

To be honest, the industrial and commercial products of the United States these years are really not very competitive, and many products are not even comparable to the Russians.

Without trade protection and open doors to compete, they will definitely die terribly.

Franz didn't expect the United States to fully open the market. It was enough to open a door. It was acceptable without smuggling.

Franz never gave up any opportunity to fight against competitors.

Prime Minister Felix: "Your Majesty, if we push again, the post-war economic crisis will probably be very tragic.

If the crisis lasts too long and the situation on the European continent will be broken again, we are not ready. "

Human calamities are the most terrible, especially those that can only manipulate the beginning and cannot control the ending, and are even more destructive.

With the advent of the industrial age, the influence of the economy on the political situation has become greater. Because of the worsening economy, the situation has become more and more turbulent, and many have caused the outbreak of war.

Franz shook his head: "Without that much time to prepare, we can never be fully prepared. When we are ready, the opportunity is missed.

Moreover, if we do not take action, it does not mean that the British will not take action either. Instead of responding passively, it is better to take the initiative to attack. "

As you get older, you tend to be conservative, but it does not mean that conservativeness is not good. In fact, for a large country, conservativeness often means long-term national transport, and radical is a disaster for a country.

It's just that the opportunity is too rare. Once you miss this opportunity and want to take action, it will cost you nothing.

To put it bluntly, Franz is not living peacefully. In addition to not daring to take risks in the military, in the economic field, he still does not mind trying.

It is the best that succeeds; it is also the speculator who fails. The experience of the Vienna government in dealing with the economic crisis is already very rich, and it will not hurt the country.

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