The year 1879 was a turning point for the entire world. Whether it was politics or economics, they were all affected by the Prussian War.
Affected by the tense situation in Europe, the Fao and Germany kept their eyes on the European continent and didn't go out to cause trouble. The British only interfered in South America and focused their attention on Europe.
Even the three hooligans didn't cause any trouble, let alone the other countries.
These days, colonial empires were very sensitive to politics. What if the situation in Europe went out of control if they didn't focus on the mainland?
The colonial empires didn't cause trouble, which was undoubtedly good news for the independent countries that were in a precarious situation. They could finally live a few comfortable days.
When the Prussian War started, even the conflicts between the British, Fao, and Germany were suppressed. For the sake of common interests, the three powers stood together early on.
Of course, this alliance of interests wasn't reliable. Once there was a major change in the international situation, or if the power of the three countries was out of balance, this alliance could collapse at any time.
If the impact of the Prussian War on the international situation was more in the post-war period, then the impact on the world economy was immediate.
Many industries were affected, and almost every field was affected. Among them, agriculture, manufacturing, finance, and service industries enjoyed the greatest benefits.
A new round of prosperity began in the capitalist world. The most typical example was the disappearance of the agricultural crisis and the absence of excess capacity in the manufacturing industry. The prosperous economy directly promoted the development of finance and service industries.
Although the war had just begun and the greatest benefits brought by the war had yet to fully erupt, the capitalists were full of confidence.
A large amount of hot money poured into the market, and the economic environment suddenly improved. Job advertisements could be seen on the streets and alleys. In fields related to the war, workers' wages increased slightly.
According to statistics, the new investment in Austria in November alone reached 160 million DND, an increase of 76.4% compared to the same period last year.
Most of this money flowed into the manufacturing industry. Factories rose from the ground. Clearly, the investors were very optimistic about this opportunity.
It wasn't just Austria, but the entire European continent. The capital seemed to have gone crazy, constantly pouring into various industries, wanting to get a share of the Prussian War.
Looking at the statistics, Franz frowned. "The market is too hot now. Although the cost of the war is great, the wallets of the Prussian and Russia are a little …
Whether it's Britain, France, or us, we won't provide them with unlimited funds. It won't be long before a new round of excess capacity breaks out, and the European economy will wail after the war. "
Minister of Economy Reinhardt Haldegen explained, "Your Majesty, this is the law of economic development. In the previous few wars, many people had made a fortune. They had been blinded by the benefits and ignored the existence of the risks.
Not only at home, but the entire European world as well. According to economic experts' estimates, in the past two months, the new investment in Europe has increased by at least 50% compared to the same period last year.
European countries would face overproduction after the war. This was a huge problem, but it was also a huge opportunity.
As long as we seize this opportunity, we can take the opportunity to destroy the French manufacturing industry and weaken our biggest competitor. "
In this era, there was no such thing as anti-dumping. Free trade was the mainstream. The French failed to resist the pressure and joined the free trade system six months ago.
The core of "free trade" was that the government would remove restrictions and obstacles to import and export trade, and remove all kinds of privileges and preferences for domestic imports and exports, so that goods could be freely imported and exported, and compete freely in the domestic and foreign markets.
The core of "free trade" was that the government would remove the restrictions and obstacles on imports and exports, and remove all kinds of privileges and preferences for domestic imports and exports.
In reality, there was a gap between companies and countries, and this gap was directly reflected in the competitiveness of the market.
There was no doubt that France, which lacked resources, was at a disadvantage in this round of competition. Because of the import of raw materials, production costs were directly raised.
In order to cut costs, capitalists naturally had to lower workers' wages, and the influx of cheap Italian labor created favorable conditions for lowering wages.
In the last ten years, the average wage in Europe had increased by 23.8%, while the average wage in France had only increased by 5.4%.
Under this background, conflicts between France and Italy were naturally endless. Even if the Government of Paris tried its best to suppress it, it had little effect.
Regrettably, even if labor wages were lowered, the international competitiveness of most French industrial and commercial products was still not high.
It couldn't be helped, labor costs were cheap these days. Except for labor-intensive industries, labor costs for most industrial and commercial products were less than one-fifth of the total cost, or even less.
Industrial raw materials accounted for the majority of production costs. If they didn't solve the problem at the source, how could they improve their market competitiveness?
The market was a whole, and while labor costs were lowered, it also weakened the market's purchasing power.
Although France had a population of 60 million, the market's consumption power couldn't catch up with John Bull, which only had a population of 30 million.
The market's consumption power wasn't good, and it was fed back into industrial production, forcing companies to produce cheaper goods. This was a vicious economic cycle.
Take coal for example, the cost of industrial coal in France was 1.3 times that of Austria, and in some inland areas, it was even more than 2 times.
This was just the beginning. The high price of coal led to an increase in the cost of power generation, which in turn led to an increase in electricity bills. High electricity prices were undoubtedly the biggest obstacle to the promotion of electricity.
One step was slow, and electricity was not promoted, so there was naturally no way to talk about electricity-powered machinery.
Affected by this, the development of upstream electrical machinery equipment manufacturers was limited, and they were unable to invest in more advanced equipment, and gradually fell behind in the international competition.
Downstream equipment users, because they didn't adopt the most advanced production capacity in time, were surpassed by their competitors in the market competition, and even eliminated.
In this era of the law of the jungle, falling behind meant being beaten. The French military strength was strong enough, and no one attacked them for no reason, but the economy was different. Everyone was a competitor, and underhanded means were inevitable.
As long as they could defeat their competitors, it was naturally worth paying some price. Under the free trade system, large-scale overcapacity appeared, and countries would have to compete with industrial strength.
In this regard, the Government of Vienna was confident, and so was Franz. This was because Austria's infrastructure was the king of its generation.
Not only was it well-developed in transportation, but it was also the first country in Europe to popularize electricity, and it was also the birthplace of the second industrial revolution, leading the world in emerging industries.
In this regard, Austria and England were two extremes. One focused on emerging fields, and the other focused on traditional industries. Both became industry overlords. This created favorable conditions for cooperation between the two countries.
Franz: "If that's the case, then let's make the crisis more intense! It's best to destroy the manufacturing industries in Europe and America together, as a cleanup before the curtain opens.
This time, we can cooperate with the British capitalists, let private companies take the lead, don't directly involve the government. As soon as the Prussian war ends, we will launch together and start this capital war. "
Sometimes, a war without gunpowder could be even more cruel. The destruction it brought was no less than a war.
It was conceivable that it wouldn't be long before unemployment and bankruptcy would once again become a hot topic in the society.
After a moment of contemplation, Minister of Economy Reinhardt Haldegen said, "As long as it's a country that joined the free trade system, it's easy.
The United States is in a bit of a predicament. They are still stubbornly implementing trade protection policies, and it's very difficult to pry open their doors. "
A fall into the pit, a gain in your wit. The American capitalists had been harmed by the British several times, and now they were scared, so they simply closed their doors and played by themselves.
Since they were rich in resources, they could directly copy European technology. Other than the fact that their market was a bit small, their lives were pretty good.
Franz: "Leave this problem to the Ministry of Foreign Affairs. The British are the pioneers when it comes to promoting free trade.
Everyone can work together to put pressure on the United States. If they join, they are half on the same side. If they are stubborn, then there's no need to be polite.
Since they want to play with trade protection, we might as well let them play. An international embargo is a good choice. "
To be honest, the industrial and commercial products of the United States weren't very competitive these days, and many of their products couldn't even compare to the Russians.
If they didn't implement trade protection and opened their doors to competition, they would definitely die a terrible death.
Franz didn't expect the United States to completely open their markets. It would be enough as long as they opened a crack in the door. If that didn't work, smuggling was acceptable.
When it came to attacking competitors, Franz never gave up any opportunity.
Prime Minister Felix: "Your Majesty, if we push it one more time, I'm afraid the post-war economic crisis will be very tragic.
If the crisis lasts too long, the situation on the European continent might be disrupted again. We are not ready yet. "
Man-made disasters were the most terrifying, especially the kind that could only control the beginning and not the end. The destructive power was even greater.
With the advent of the industrial age, the economic impact on the political situation became greater and greater. Because of the economic deterioration, there were countless situations that led to the outbreak of war.
Franz shook his head. "We don't have that much time to prepare. We can never be fully prepared. By the time we're ready, the opportunity will have already passed.
Besides, even if we don't take action, it doesn't mean that the British won't take action. Instead of being passive, it's better to take the initiative. "
People tended to be conservative as they got older. It wasn't that being conservative was bad. In fact, for a large country, being conservative often meant that the country would have a long life. Being radical was a disaster for a country.
It was just that the opportunity was too rare. If they missed it, the price they would have to pay if they wanted to take action again wouldn't be a small one.
To put it bluntly, Franz didn't want to live peacefully. Although he didn't dare to take risks in the military, he didn't mind trying in the economic field.
If it succeeded, it would be the best. If it failed, the speculators would be the unlucky ones. The Government of Vienna had plenty of experience in dealing with economic crises. It wouldn't hurt the country's foundation.
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