The era of colonial expansion had ended, and the focus of the Government of Vienna had returned to the country. Austria's most serious problem now was the uneven development of the domestic economy, and the widening gap between the rich and the poor.
Just looking at the per capita income of 64.6 DB, this figure was not low. After deducting the children and the elderly, the per capita income of the labor force was over 100 DB.
However, the reality was that capitalists and nobles had an annual income of tens of millions, while most ordinary workers had an annual income of less than 30 DB.
Franz also had a vested interest in this. As someone who had increased the per capita income, he had no choice but to worry about the widening gap between the rich and the poor.
Taking Vienna as an example, as the city with the highest per capita income in the world, Vienna had an annual income of 328 DB.
This income was above the middle class in any country or region in the world.
Vienna was Austria's capital of finance, culture, technology, and education. With so many resources, it was not surprising that it had such a standard.
However, the statistics told Franz that this was only prosperity on the surface, and the internal problems were very serious.
Vienna had a population of 1.06 million, and 620,000 of them were of working age. Less than 11.2% had an annual income of 328 DB, 29.6% had an annual income of more than 100 DB, and 24.6% had an annual income of less than 30 DB. (Only the labor force was counted.)
This was the capital, and there were already so many low-income people. If it were any other region, it would probably be more serious.
According to the statistics, 31.2% of the poor people had an annual income of less than 20 DB. This was not a statistic that a developed country should have, but it was the reality.
The disparity between the rich and the poor was only one aspect, and the regional imbalance was even more shocking. The per capita income of the poorest small county was less than 8 DB.
This income was probably only enough to eat potatoes. This was based on the premise that Austria was a grain-producing country. If it were England, they could only make do with wild vegetables.
Moreover, this gap was constantly widening. The poor areas were getting poorer, and the rich areas were getting richer.
Before the old problems were solved, new problems arose. With the economic development, the gap between urban and rural areas was increasing at an alarming rate.
The five years from the abolition of serfdom in 1848 to 1854 were the golden years of rural economic development in Austria. Agricultural output increased by 56% in those five years.
After that, the development of the rural economy slowed down rapidly, especially after the outbreak of the agricultural crisis in 1873, the Austrian rural economy even showed negative growth.
While the national economy was advancing by leaps and bounds, Austria's rural economic growth rate in 1875 was less than 1%. It could almost be said that it was standing still.
With so many problems gathered together, Franz's hair was about to fall off. "Solve" sounded simple, but the problem was how to solve it.
It wasn't just Austria's problem. No country in the 19th century was an exception. No one was able to solve these problems.
Since Franz raised these issues, the Government of Vienna had been trying to find a solution, but the reality was still so cruel.
Franz didn't even dare to order the bureaucrats to solve it, because if he gave the order, he might not be able to see the real data.
This was not the age of the Internet. In this age of backward communications, it was very easy to whitewash the situation. All they had to do was to change the data.
Deceiving the superiors and deceiving the subordinates was a natural skill of bureaucratic groups. The Tsarist government next door was an example of this. Since Alexander II Of Russia promoted the reform, the Russian Empire developed at an amazing speed on paper.
Just based on the data on paper, the industrial strength of the Russian Empire had already surpassed Austria. It was estimated that in a few years, it would surpass the European continent. Maybe in the lifetime of Alexander II Of Russia, the Russian Empire could surpass the world.
Compared to the bureaucrats of the Tsarist government, the Austrian bureaucrats had a conscience. Data fraud also existed, but it was definitely not that crazy.
This was Franz's credit. As a qualified emperor, rewards and punishments were necessary, so a strict reporting reward system was established.
You could fake the data, but you had to ensure that everyone cooperated. It was not enough to ensure that the next government cooperated. You had to ensure that the next government cooperated.
The responsibility system was lifetime, and all those who did not report the information were jointly and severally liable. All the honors were revoked, and they would be imprisoned for the rest of their lives.
As a whistleblower, they were directly promoted to level three, and they could also enter the investigation department to specifically investigate data fraud.
As the sacrifice of this policy, the bureaucrats of the Bosnia-Herzegovina Province were the first to suffer. One of the officials that Franz thought highly of was included in the Cabinet's list of candidates and also fell into the trap.
Thousands of public officials went to prison at once, and all the bureaucrats in the Bosnia-Herzegovina Province were implicated.
After being affected, everyone restrained themselves, and the data immediately returned to normal.
Who didn't have a few political enemies in the bureaucracy? If the local governments were all monolithic, the Government of Vienna would not be able to sleep at night!
With the top tight, the people naturally did not dare to mess around. It was just statistics, and they could just honestly report it. Falsification was indeed easy to get political achievements, and it was easier to go to prison.
Vienna Palace, Economic Conference.
Franz directly slammed the table, "The domestic economy is developing very fast, but the gap between the rich and the poor, the region, and the urban and rural areas is getting more and more serious. Now it is time to solve it.
If it drags on, it will only be more difficult to solve it in the future. I do not ask for a hundred percent solution, but I must ensure that the situation does not continue to worsen. "
His request was so low, and with the current productivity, Franz knew that these problems could not be solved at all.
Not solving the problem did not mean not solving the problem. No matter what, it was better to do it than not to do it. Even if the current situation was maintained, it was a great victory.
Prime Minister Felix braced himself and replied, "Your Majesty, the biggest problem of the regional economic development is the natural constraints.
We can only adapt to the local conditions and formulate appropriate economic development policies. There are still a large number of areas that are not suitable for industrial and agricultural development due to the natural constraints.
From the overall situation, we must make choices in these areas, and focus on developing the areas that are easier to develop.
The widening gap between urban and rural areas is a global problem. With the development of industrial technology, the gap between industry and agriculture will only become more serious.
In the short term, the most effective way is to promote land acquisition and adopt the large farm production model to replace the small farming economy in many areas.
However, this is also the most undesirable method. The social problems caused by land acquisition are far more serious than the widening gap between urban and rural areas.
In fact, these two problems are not the key. The most important thing is the widening gap between the rich and the poor, and the increasing number of poor people.
As long as the income problem of the people at the bottom is solved, whether it is the regional imbalance or the widening gap between urban and rural areas, it is all acceptable. "
This is a false proposition. Without solving the regional imbalance and the gap between urban and rural areas, how can the gap between the rich and the poor be reconciled?
The three have always complemented each other. Income is different from other things. It is regulated by the market, and the government cannot forcibly control it.
Franz is no longer an economic newbie. He will not naively think that everyone's income will increase if the government sets a higher minimum wage.
This is impossible. The labor costs that each industry can bear are different. The market competitiveness of some traditional industries is based on cheap labor.
In the future, many countries played with deindustrialization. In addition to the nominal excuse of "environmental protection," it was more because of the high labor costs in developed countries.
Or it could be said that the guilds have become a profit tool for some people. In order to pursue a higher return on investment, capitalists have to move factories.
Austria has not developed to that stage. Many capitalists are still at the stage of lying down and making money. Most industries have good profits.
The main reason why the income of the people at the bottom is not increasing is the supply and demand relationship in the labor market. The so-called labor costs affect market competitiveness is actually very nonsense.
In the current labor prices, labor costs are actually very low. In addition to labor-intensive industries, labor costs in many industries are less than one-tenth of the product price.
Compared with the competitor, the British, labor costs in Austria are much cheaper. The cost of raw materials is also much cheaper. However, the retail price of the products in the international market is almost the same.
This made Franz very dissatisfied. With so many favorable conditions, the capitalists did not compete with the British for the market. Obviously, the domestic market has fed them, and everyone's initiative is no longer enough.
If they do not change, they will have a sense of crisis. If this continues, it is estimated that Austria will also fall into the "resource trap."
In the original timeline, the British and French capitalists are like this. They can make money anyway, so why work hard?
Each and every one of them takes the money to eat, drink, and have fun without any sense of crisis. In the end, they watch the Americans and Germans surpass them.
Changing the status quo of domestic capitalists is the core of this economic conference.
Franz: "Solving the gap between the rich and the poor is indeed the core problem. What is the government's plan?"
Prime Minister Felix: "The easiest way to raise everyone's income in the short term is to emigrate. There is a surplus of labor in the country, but the labor force in the colonies has always been very scarce.
We have also been emigrating over the years, but we have not done enough. In the inland areas, we have done very little propaganda work. Now we must change this situation.
The government plans to emigrate 10 million people from the mainland to the colonies within five years. The main areas of immigration this time are rural areas with high population density, as well as poor and remote areas. "
With a large number of immigrants entering the colonies, the supply and demand relationship in the domestic labor market will inevitably change. The days of capitalists relying on cheap labor will never return.
It is not that Franz is ruthless, it is completely forced by reality.
The original German Empire is the best example. Apart from coal and iron, almost all resources are lacking. The labor costs are also higher than the French. There are not as many colonies to plunder, but they developed.
The talent bonus of compulsory education is one aspect, but more importantly, it is the sense of crisis of the enterprise that urges everyone to promote technological innovation.
Austria has had compulsory education for so many years, the quality of the population is not low, and there is a richer market and resources. There is no reason why it cannot be done.
The second industrial revolution began in Austria. It is reasonable to say that with Franz's promotion, new technology should be faster than the same period in history, but the reality is slapping them in the face.
In 1875, the new patented technology in Austria was one-third owned by the royal family, and this number is still increasing year by year.
After research, Franz found that the core problem is that the life of the enterprise is too comfortable. They can make money lying down, and capitalists are not willing to promote technological innovation at all.
This is determined by profit. Low labor, raw material prices, and a wide market allow them to make money without hard work.
But the development of new technology is full of uncertainty. The investment and return may not be proportional, and people are not willing to take the risk.
There is no pressure, so they can only create pressure. This year has not reached the era of capital internationalization, and Franz is not afraid of the capitalists running.
Engaging in international trade requires the endorsement of the government, and behind every multinational group is the government. Even so, these groups are often cheated by the local snakes.
There are many classic cases of this. For example, British and French capital invested in Austria's railway and infrastructure construction, but Franz used the economic crisis to cheat them.
Another example: British capital built a large railway in the United States, but in the end, it also lost everything.
Those with a background are cheated, but that is within the scope of the rules. Those without a background, needless to say, do not need to pay attention to the table manners.
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