Valley Emperor

Vol 2 Chapter 1766: The crisis behind prosperity

Today, the annual output of pig iron in the whole of Europe is estimated to be only tens of thousands of tons, and the amount of steel is even more pitiful.

There is more coal, but it is mainly concentrated in the anthracite coal invested and mined by Datang businessmen in the UK.

In these manual workshops, the difference between the mere tens of thousands of tons of steel produced by manpower and Datang's millions of tons of steel production capacity is so big that people can't bear to look at it directly.

The fact that Datang can obtain such a huge output of steel and coal is not purely due to technical problems. In addition to technological development and the ability to mass-produce steel, it also shares a huge population with the Datang Empire and has the largest internal consumption in the world. The market matters.

After all, this steel has to be sold. If it can't be sold, it will be overcapacity, which will lead to an economic crisis or something.

However, Datang's demand for these basic industrial products such as steel and coal is huge.

Datang produced so much steel and coal, except for a small part of which was turned into steel products for export, most of the production capacity was consumed within Datang, and even so, these basic industrial products still could not meet the needs of the huge empire. need.

Railways, shipbuilding, machinery, infrastructure and other aspects consume a large amount of Datang's steel production capacity, not to mention coal, countless steam engines, whether they are ships, trains, or steam engines in factories, are consumed every day. The astronomical amount of coal, coupled with the coal used by residents for heating and cooking, has led to the fact that even though Datang's coal production has risen steadily, it is still unable to meet such a huge demand, resulting in high coal prices.

Therefore, in the past two years, the basic industries of the empire, especially the industries represented by steel and coal, have been continuously increasing their production capacity.

In the early years, Li Xuan was worried about the production capacity process, but now Li Xuan looks back and finds that this worry is completely unnecessary.

The mainland of the Datang Empire, as well as its overseas mainland and overseas territories, has nearly 300 million imperial subjects. These are imperial subjects who have the incomparable spending power of those natives. The 300 million imperial subjects have created a huge consumer market. .

In addition to the consumption power of the people of the empire, although the consumption power of the indigenous people of various countries is low, there is still a huge demand for steel products and the like. After all, those indigenous people also have to farm, and farming requires agricultural tools. A significant area of ​​consumption of contemporary steel products.

It's just that Li Xuan also knows that this era of barbaric growth cannot continue forever, and it may be possible to maintain the current rapid development in recent years.

However, after the development reaches a certain level, the consumer market will eventually be full. If we continue to blindly expand production at that time, there will be excess production capacity.

Once there is a production capacity process in the domestic market, there is no second market on this earth where the industrial and commercial products of the Datang Empire can be dumped.

The combined size of the overseas market is not as good as a fraction of the local market. No matter how much you dump it, it will not help.

Especially when Li Xuan saw the report from the Ministry of State-owned Enterprises, several large state-owned steel plants controlled by the Ministry of State-owned Enterprises and some steel plants controlled by local finance have already started a new round of large-scale expansion plans to cope with the future. Years of huge demand for steel products.

In this regard, Li Xuan is vigilant.

Because this expansion plan is a bit big!

Guangguang is a Jiangnan iron and steel company, and they are preparing to invest in a new large-scale steelmaking plant with a steelmaking capacity of one million tons. Once the expansion is completed, only one Jiangnan Iron and Steel Company will have a steel production capacity of 1.3 million tons.

At present, the total steel output of the empire is only 2 million tons.

More importantly, there are more than one steel company in the empire, Jiangnan Steel Company, there are seven or eight that can be counted.

After a little bit of time, you will find that so many steel companies add up. After they all complete the expansion, their steel production capacity will reach a terrifying more than 10 million tons, which is directly five times higher than the current steel production capacity.

In addition to steel, the production capacity expansion of pig iron is also large, and it is expected that the new round of production capacity expansion will reach a terrifying amount of more than 20 million.

Get rid of it, the British steel production before the First World War was only a few million tons, and the pig iron was only more than 10 million tons!

Datang, which has just been industrialized for decades, has produced a larger steel output than the United Kingdom before the First World War. Who will sell this production to?

Although the internal market of the Datang Empire is huge, it has only been industrialized for more than 20 years. Even if it continues to develop at such a high speed, it is estimated that the internal demand in ten years will not reach the level of 10 million tons. .

This step is a bit big!

Unless it is the navy that pays the money, a large number of battleships~www.wuxiaspot.com~ develops industries that consume a lot of steel, such as the automobile industry. It's really not easy to consume these 10 million tons of steel.

The report on the development of the steel industry submitted by the Ministry of State-owned Enterprises made Li Xuan vigilant.

On the same day, he sent the report from the Ministry of State-owned Enterprises to the East Palace, which was regarded as a temporary homework assignment for Prince Li Hao.

Li Xuan is very aware of what overcapacity will lead to, but he knows, others may not know.

The industrialization process of Datang is so fast that many soft powers such as matching economic theories have actually failed to keep up.

The only one that can follow Datang's rapid industrialization process is probably the Tax Department. No matter how fast Datang's industry and commerce develop, all kinds of chaotic industries are emerging one after another, and the Tax Department can always be relaxed and happy. Respond and collect taxes.

Whoever made the Ministry of Human Taxation the largest institution in the empire has hundreds of thousands of direct employees!

In addition to tax investigators and action team members, there are also a large number of senior talents who spend all day thinking about how to collect taxes, plug various loopholes, and improve tax laws.

The tax department, which has long been fighting with high-IQ criminals who have evaded and evaded taxes, wants money, money, people, and guns. Some armed action teams even have small-caliber artillery, so it's not easy to mess with!

But apart from a freak like the tax department, many other institutions are already struggling to keep up with the rapid development of the Tang Empire. For example, the Ministry of State-owned Enterprises, the institutions have grown older and bloated over the years. The efficiency of work is getting lower and lower.

And it's not that they are lazy or deliberately creating obstacles, but that there are too many affairs, too complicated, and new events emerge one after another, which makes the officials of the Ministry of State-owned Enterprises tired to deal with them.

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