Chapter 364

Economic crises in the capitalist world often came and went in a hurry. The first global economic crisis finally came to an end at the beginning of 1859.

By the end of 1858, Austria's industrial output had dropped by 29.7% compared to the previous year, and the total economic output had dropped by 17.3%. More than 3,000 companies had gone bankrupt, and the number of unemployed people had exceeded the one million mark …

Franz finally understood why everyone was so afraid of the economic crisis. The Government of Vienna had actively taken measures to deal with it, but the losses were still so great, not to mention the countries that did not take measures.

Of course, such a great loss in Austria's economy was directly related to the previous rapid economic growth. The market value of the railway company that was hyped up by Franz had fallen to less than one-tenth of its peak.

It was not only a bad thing that the economic crisis brought great losses. From another perspective, it also meant that Austria's industrialization was about to be completed. Only when the capitalist economy had developed to a certain extent would there be such losses.

If the capitalist economy had not developed, even if there was an economic crisis, it would not have been affected.

The Russian Empire next door was an example. Did the economic crisis have anything to do with them?

The United States and Austria suffered the most from this economic crisis. The United States suffered because the British withdrew their funds, and there was a money shortage in the market. The weak central government was completely at a loss.

Naturally, Austria suffered from the crazy influx of capital and the consequences of the blind investment of the capitalists. After the economic crisis, the market returned to rationality, which was not a bad thing.

After looking through the economic report, Franz nodded with satisfaction.

The Government of Vienna's performance was satisfactory to be able to come out of the economic crisis so quickly without any experience to learn from.

Prime Minister Felix said, "Your Majesty, the economic crisis has ended, and the world economy has begun to recover. The cabinet has decided to end the economic stimulus policy to prevent another frenzy of blind investment.

In response to this economic crisis, the government has increased investment in infrastructure. Our fiscal deficit in 1858 is as high as 280 million BND, which has seriously exceeded the government's financial capacity.

In order to reduce the financial pressure, the government plans to reduce fiscal expenditure in the next three years and gradually reduce the debt by 30 million BND.

The projects that have already started construction will continue, and the projects that are in planning and not yet under construction will all be postponed. "

Infrastructure also needed money. As the biggest recipient of this economic crisis, the Government of Vienna also spent a huge amount of money.

Part of the funds raised from the bond issue was used to take over the unfinished projects, and part of it was invested into the railway company and other industries related to the people's livelihood.

The deficit of 280 million Divine Dun had been spent. Two and a half years of fiscal revenue had been used for infrastructure projects and enterprise shares.

The remaining part had to be earmarked for specific purposes. It wasn't like all the construction projects were unfinished, and many people were still trapped in the trap plan.

Since they were continuing to complete the project, the government naturally had to pay the construction fees. The government of Vienna attached great importance to their reputation. Payment would be made immediately after the completion of the project.

When the government ran out of money, it naturally had to cut spending, and the first cut was on infrastructure investment.

The infrastructure construction this time was already equivalent to ten years of investment in normal times. Naturally, it could not be continued for long.

No matter how crazy Franz was, it was impossible for him to invest twice the amount of money into infrastructure construction every year.

Economic Era. of of of of. After the economic crisis ended, the priority for building infrastructure was to consider economic benefits.

The infrastructure construction of the important cities in the country has been covered. There are no major projects needed in the short term, so the infrastructure construction can come to an end.

Now, the construction of the infrastructure of the important cities in the country had been covered. In the short term, there were no major projects that were necessary, so the construction of the infrastructure could come to an end.

After this time, the large amount of enterprise shares we hold should be generating profits. " After this period of time, the large amount of company shares in our hands should be generating profits. "

It was true that it would generate profits, but unfortunately, the largest sum of money was invested in the railway company. This investment would not yield profits unless he relaxed the policy and allowed the railway company to give up some unpopular lines and only operate in bustling commercial areas.

Unless he relaxed the policy and allowed the railway company to give up some unpopular lines and only operate the railway in the busiest commercial areas.

Economically, it would be the most profitable; politically, it would be the last thing to do.

Covering the railway to every city in the country that needed it was not only for economic development, but also to strengthen the central government's control over the local areas.

In this context, Franz could only apologize to the speculators who were trapped later. For the development of the country, the railway company must first operate at a loss and not aim to make profits in the short term.

If it was not for the government tying up the railway project during the hot market period and letting the capitalists freely build the railway, it was estimated that there would be three to five railways in the prosperous areas, and the economically backward provinces would not even have a railway.

This point had been proven in Britain and France. Railways without economic value would not be built at all, and there would be a lot of repeated construction in the economically prosperous areas.

If this was the only trap, it would be fine. The problem was that many of the enterprises that the government invested in belonged to the heavy industry, which belonged to the kind of investment with high investment, long cycle, and high return.

In the short term, these enterprises had to expand production and promote technological innovation, and basically did not see dividends. It was far from being able to rely on these investments to make up for the financial deficit.

Of course, from the beginning, the Government of Vienna did not expect to gain much from it.

It was more through the government's investment to provide life-saving funds to protect these core industries.

This was equivalent to the current government living a hard life, leaving rich assets for the future government. This kind of thing could only happen in a country with stable politics.

In a country where the government changed frequently, it would be good if it did not leave trouble for the next government. To want to accumulate assets for them? In their dreams!

This was also the reason why many countries' government debts were increasing. Anyway, as long as the current government was happy, who cared about the life and death of the successor?

As the debts piled up, in the end, the government had to be influenced by the consortium and gradually became the spokesperson of money.

An iron camp, a flowing flow of soldiers.

It was different in a monarchy country. The cabinet government would change, but Franz, the emperor, could not change. Even if there was a change, the successor would be his offspring. Naturally, he would not allow anyone to sacrifice future development for immediate interests.