Chapter 961

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, the gap between them was still growing. The poor areas were getting poorer, and the rich areas were getting richer.

Before the old problem was solved, a new one had appeared. 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 rural economic development slowed down rapidly. Especially after the agricultural crisis in 1873, Austria's 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, Franz's hair was about to disappear from his head. "Solve" was easy to say, but the problem was how.

It wasn't just Austria's problem. No country in the 19th century was an exception. No one was able to solve these problems.

Franz did not even dare to order the bureaucrats to solve it. Once the order was given, he would not be able to see the real data.

Franz didn't even dare to order the bureaucrats to solve the problem, because once the order was issued, 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.

Deception was a natural skill of bureaucratic groups, and the Tsarist government next door was an example of this. Since Alexander II Of Russia promoted the reform, the Russian Empire developed at an alarming rate on paper.

Based on the data on paper, the industrial strength of the Russian Empire had surpassed Austria. It was estimated that it would surpass the European continent in a few years. Maybe in the lifetime of Alexander II Of Russia, the Russian Empire could surpass the world.

Compared to the bureaucrats of the Tsarist government, Austria's bureaucrats had a conscience. Falsification of data existed, but it was definitely not that crazy.

This was Franz's credit. As a qualified emperor, rewards and punishments were necessary. Therefore, a strict reward system was established.

You could falsify 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.

Lifelong responsibility. All those who did not report would be jointly held responsible. All honors would be revoked and they would be imprisoned for the rest of their lives.

As a whistleblower, they would be directly promoted to level three. They could also enter the investigation department to investigate falsified data.

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. The bureaucrats of the Bosnia-Herzegovina Province were all implicated and almost completely wiped out.

After being affected by this, everyone calmed down, and the data returned to normal in an instant.

Who in the bureaucracy didn't have a few political enemies? If the local governments were all monolithic, the Government of Vienna wouldn't be able to sleep at night!

Since the top had a tight grip, the bottom naturally didn't dare to mess around. It was just statistical data. They just had to report it honestly. Falsification was indeed easy to get political achievements and more likely to go to prison.

Vienna Palace, Economic Conference.

Franz slammed the table, "The domestic economy is developing rapidly, but the gap between the rich and the poor, regions, and urban and rural areas is getting more and more serious. It is now time to solve it.

If it drags on, it will only be more difficult to solve it in the future. I don't ask for a hundred percent solution, but I must ensure that the situation doesn't continue to worsen. "

His request was that low. With the current productivity, Franz knew that these problems couldn't be solved.

Not solving the problem didn't mean not solving it. No matter what, it was better to do it than not. Even if the current situation was maintained, it would be a great victory.

Prime Minister Felix braced himself and replied, "Your Majesty, the biggest problem with the unbalanced development of the regional economies is natural constraints.

We can only make appropriate economic development policies according to the local conditions. There are still a large number of areas that are not suitable for industrial and agricultural development due to natural constraints.

From the overall situation, we must make choices in these areas and focus on 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 scissors gap between industry and agriculture will become even more serious.

The most effective solution in the short term 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 solution. 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 aren't 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's the unbalanced development of the regions or the widening gap between urban and rural areas, it's all acceptable. "

This was a false proposition. If the imbalance of regional development and the urban-rural gap were not resolved, how could the gap between the rich and the poor be reconciled?

The three have always complemented each other. Income is different from other things. It's regulated by the market, and the government can't forcibly control it.

Franz is no longer an economic newbie. He won't naively think that if the government sets a higher minimum wage, everyone's income will go up.

This is impossible. Every industry can bear different labor costs. The market competitiveness of some traditional industries is based on cheap labor.

In the future, many countries tried to deindustrialize. Other than the excuse of "environmental protection," it was mostly because of the high labor costs in developed countries.

Or it could be said that the guilds became a tool for some people to make money. In order to pursue a higher return on investment, the capitalists had to move factories.

Austria hasn't developed to that stage. Many capitalists are still at the stage of making money lying down. Most industries have good profits.

The main reason why the income of the people at the bottom can't go up is the supply and demand relationship in the labor market. The so-called labor cost affecting the competitiveness of the market was, in fact, 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, but 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 didn't fight with the British for the market. Obviously, the domestic market has fed them, and everyone's enterprise is no longer enough.

If they don't change, they will have a sense of crisis. If this continues, Austria will probably 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 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.

The core of this economic conference is to change the status quo of domestic capitalists who don't want to make progress.

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 there has always been a shortage of labor in the colonies.

We have also been emigrating over the years, but we haven't done enough. In the inland areas, we have done 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, and the days of capitalists relying on cheap labor will never return.

It's not that Franz is ruthless, it's that he is forced by reality.

The original German and Space-Time Empires are the best examples. Apart from coal and iron, almost all resources are lacking, labor costs are higher than the French, and there aren't as many colonies to plunder, but they developed.

The talent bonus from 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, so there is no reason why it can't be done.

The second industrial revolution began in Austria. It stands to reason that with Franz's promotion, new technology should be faster than the same period in history, but reality slapped 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 by 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, so they don't need to work hard to make money.

But the development of new technology is full of uncertainty, and the investment and return may not be proportional, so people are not willing to take risks.

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 there is a government background behind every multinational group. Even so, these groups are often cheated by the local snakes.

There are many classic cases, such as: British and French capital invested in Austria's railway, infrastructure construction, and Franz took advantage of the economic crisis.

Another example: British capital built a large railway in the United States, and 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 table manners.