In fact, Zhou Tianshou is quite benevolent. When he gave Tie Xuan the job of president, he told Tie Xuan that Wan Lei predicted that there would be an economic crisis. At that time, Tie Xuan didn't care much because the country's economy was booming at that time.
, there is money to be made in all walks of life, but economic crisis? Worrying about it is unfounded.
However, in April of the seventeenth year of the Chinese calendar, when all walks of life in the Republic of China were booming and the national economy was developing rapidly, the domestic and overseas markets were becoming saturated, and there was a surplus of goods, resulting in a decline in prices.
Companies suffered losses due to this sudden blow, and the good times were gone forever.
With commodity prices plummeting and the more production, the greater the losses, most companies have begun to reduce production and lay off employees in order to reduce losses. These measures of business owners are based on their own interests, which is understandable, but the national economy of the Republic of China is in dire straits.
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Originally it was just a surplus of goods, but now a large number of industrial workers are unemployed. Workers have no income, so they naturally have to cut back on food and clothing. No matter how low the price of goods that are not necessary for daily life is, they will no longer be sold. And these companies are unprofitable, so they have to lay off workers and reduce production.
, some companies simply closed down and kicked out all workers. The unemployment rate skyrocketed and domestic demand plummeted.
In short, this is a vicious circle.
This cycle lasted for more than three months. In August of the seventeenth year of the Chinese calendar, the giant aircraft carrier of the economy of the Republic of China finally couldn't resist it. The second day of August was called the Black Second Day because of the largest stock trading in the country.
Most of the stocks listed for trading on the Peking Stock Exchange were sold off, prices plummeted, and tens of millions of silver dollars of capital evaporated from the market in one day.
The so-called freezing does not happen in a day, but the economic avalanche is out of control. It is not unexpected that stocks are sold off. After all, the market is bearish, and major listed joint-stock companies are difficult to meet the profit expectations of shareholders.
, seeing that the dividends have not been paid, and may even lose all their money due to the bankruptcy of the company, of course all shareholders, large and small, must sell their stocks quickly.
As soon as the stock selling frenzy broke out, all large and medium-sized enterprises fell into the dilemma of going out of business due to insufficient financing. Some companies with weak foundations went bankrupt and liquidated. Both demand and supply fell into a depression, and there were even many unemployed workers.
People started to make trouble, and even people held large banners and started demonstrations in Huaxia Plaza. Tiexuan, who had just lived in Huaxia Garden for just over a year, was having a hard time.
Of course, the economic crisis cannot be blamed on Tie Xuan, because it is caused by the laws of economic operation, and no one who comes to power can stop it. However, unemployed workers whose living standards have declined do not care about this. In short, they have no jobs and are the government
responsibility, and some members even proposed impeaching the president in the House of Representatives.
Wan Lei and Tie Xuan are old comrades in arms, and he doesn't want the Republic of China to be defeated by this crisis, so he still has to help. After reading the pile of materials sent to him, he went directly to
The special envoy asked: "What does President Iron plan to do?"
"President Iron cannot come up with a feasible countermeasure for the time being. Now he can only instruct the Senate of the Executive Yuan and some economists to form an investigation team to investigate and analyze in various places to find out the root cause of the problem so that we can prescribe the right medicine." The special envoy headed by Liu Wenzhi is called Liu Wenzhi.
, was one of Wan Lei’s early students, and Tie Xuan sent him here just to play the favor card.
"Well, it's time to investigate carefully." Wan Lei stopped to drink a cup of tea and added: "But in my opinion, the cause of this economic crisis is the blind expansion of industry, resulting in overproduction. This overproduction is
It is a relative surplus, not an absolute surplus, so relying solely on market self-regulation cannot overcome this difficulty, and the government should step in to regulate it."
"President Tie also believes that the government should introduce policies to regulate the economy, but we don't know where to start now. But do you have any suggestions, sir?" Liu Wenzhi asked hurriedly. He knew that Teacher Wan was a person who would not sit idly by.
"As I said before, this is a relative surplus rather than an absolute surplus. To put it bluntly, production and consumption are not equal. Consumers cannot use up the goods produced, and some goods or services that consumers want are not provided.
Therefore, adjusting the industrial structure and stimulating domestic demand are the fundamental solutions."
"Adjusting the industrial structure? How to adjust it?"
"The so-called industrial structure is actually a division. Agriculture is the primary industry. Now there is a surplus in agricultural production, and we should not blindly expand the scale. The secondary industry is industry, including heavy industry and light industry. There is not an absolute surplus of heavy and light industrial products.
It’s a relative surplus.”
"Take the light industry as an example. Companies are concentrated in conventional industries such as textiles, brewing, and papermaking. Although they produce many goods, the varieties are very single. There are just a few types of things that are sold here and there, and the people have all of them on hand.
If you have it, naturally you won’t buy it.”
"Therefore, these light industry companies need to reform and innovate to produce more high-quality and cheap goods. The same goes for heavy industry. Steel production is still not saturated, but the variety of machines made from steel is pitifully small, resulting in a shortage of steel production.
The illusion of surplus is that as long as more and more practical machines are developed and designed, the demand for steel will naturally rise sharply."
"The tertiary industry is the service industry. Affected by the economic downturn, this industry has also been severely damaged. However, the service industry is not as simple as running a hotel or restaurant. It is an industry with great potential. It is not that people do not want services now, but the market
We have not provided them with the services they want, such as running water to their homes, electric lights to their homes, and urban bus services, which are all urgently needed by the people."
"Sir, what you are saying is that our finances should be..." Liu Wenzhi stopped talking, because there is something wrong with the finances of the government of the Republic of China. The economy is not good, and the national finances are certainly not much better. The fiscal revenue
If it cannot reach the budget level, it will have a serious deficit. Even if it wants to adjust the industrial structure, it will not have the money.
"You can still squeeze out money by squeezing. The key is to see whether you have the determination to correct it." Wan Lei paused and then said: "This economic crisis is a crisis, but it is also an opportunity. You can take this opportunity to complete the task."
Adjusting and upgrading the industrial structure creates a more solid economic foundation, which will make it less susceptible to such economic crises in the future."
"Mr. Wan is right, but adjusting the industrial structure cannot be accomplished in a day or two. During this period..." Another special envoy asked in a low voice. In fact, he meant to ask Wan Lei to come forward and speak for Tie Xuan.
, let there be fewer troublemakers, so they can go ahead and do it.
Why didn't Wan Lei know the purpose of these people? In addition to coming to learn from the scriptures, he also wanted to use him as a magic needle to calm the sea. After all, he is the father of the country, and his words can still calm people. However, he did not refuse, saying: "I will make a speech.
This statement explains what the economic crisis is about and calls on the people to carry forward the spirit of reason and unity and work together to overcome the difficulties. However, your government must also make some achievements so that the people can see hope."
"This is natural. We will work hard and never live up to your expectations," the special envoy said hurriedly.
"As long as you understand. Let's do this. You go back and tell President Tie first that the Federation of Great Xia is willing to work together with the Republic of China and try its best to assist the Republic of China in completing its economic transformation. At the same time, we also hope to invite the Republic of South China to join us and tide over the times together.
After all, we are all one family, so don’t worry too much at this time. Therefore, I plan to hold an alliance meeting in Honolulu on the tenth day of next month. I hope that both the Republic of China and the Republic of South China will send representatives to participate, and we will discuss the economy together.
Reform matters.”
"Everyone is gathering firewood and the flames are high. With the Federation of Daxia and the Republic of South China working together to help, there will be no difficulty in overcoming the difficulties. Sir, this arrangement is the best. We will definitely tell President Tie." Liu Wenzhi said happily, in fact, they did not want to go to Nanzhou.
Looking for help, but the relationship between the Republic of China and the Republic of China is somewhat tense on the issue of sea rights. Now Wan Lei has come forward to mediate, which is really the best thing.
There is a conflict between the Republic of China and the Republic of South China, and Wan Lei doesn't know about it. However, the main purpose of his alliance meeting this time is not just to mediate the relationship between the two countries, but to establish a global political alliance.