Chapter 105: Born Out of Thin Air - "Small Island Economics"

On a small island in the East China Sea, there are three people living, Zhang San, Li Si and Wang Er Mazi, their life was very difficult at the beginning, they could only eat fish, and every day a person could only catch fish with their bare hands, they caught just enough fish every day, and they had nothing on such a small island.

One night, Zhang San, who was not satisfied with the status quo, looked up at the starry sky and began to think about how to have a better life, so he thought that he could make a tool for fishing, which he called "fishing nets".

So Zhang San began to find materials to make fishing nets, because not fishing for a day means starving, so Zhang San had to risk starving to death, at first Li Si and Wang Er Mazi laughed at him, thinking that he must be crazy.

What Zhang San has done is actually to improve productivity, that is, to improve efficiency, and at the same time, of course, to take risks, isn't the progress of our country to progress in the process of constantly improving efficiency? Zhang San's simple move has told us a basic economic principle, which can improve people's living standards: Insufficient consumption and daring to take risks.

The next day, Zhang San started fishing with his new fishing nets, which proved to be effective, doubling his efficiency, catching an average of two fish a day, Zhang San increased his productivity, breaking the originally calm island, and he could have more time to do other things.

Since Zhang San can catch twice as many fish per day as Li Si and Wang Er Mazi, therefore, the gap between the rich and the poor on the island has been widened, Li Si and Wang Er Mazi asked Zhang San to share his new fishing tool fishing net, at first Zhang San refused, he was worried about what would happen if these two guys broke my fishing net.

Zhang San let them make their own fishing nets, Li Si and Wang Er Mazi were worried that if they didn't succeed in making their own fishing nets, but were starved to death, what if they were too risky, they were unwilling, and then Li Si thought of an idea and said to Zhang San: "You lend us the surplus fish every day, and then return it to you when we make the fishing nets and catch the fish", Zhang San thought that this was better than borrowing fishing nets for nothing, but what if the two of them couldn't make fishing nets, or were lazy? The risk was still too great, and Zhang San refused again.

Only then did Li Si and Wang Er Mazi understand that they did not consider Zhang San's personal interests and risks. So after careful consideration, they discussed with Zhang San again: "Let's make an agreement, you lend us a fish, we will return you two, this is a 200% profit, on this small island, you can no longer find such a high rate of return." Zhang San finally got moved, thinking that his fish could become two or two into four, and one day, wouldn't he become the fish boss. After much consideration, Zhang San agreed to lend the fish to Baker and Charlie for 200% of the rent.

As a result, the next day, Li Si and Wang Er Mazi were hungry and made their own fishing nets, and they could catch two fish a day, which is the benefit of increased productivity.

After a few weeks, the trio had caught a large number of fish in their newly woven nets, and the island's savings had increased, and they had occasionally splurged on two fish a day, but most of the time they could not eat at all.

They had time to start designing better fish traps, and together they founded a factory to build this huge underwater fish trap that could catch fish day and night, and they were able to catch more than 20 fish a week without having to fish themselves, which revolutionized the island's economy.

The three of them act by saving, not only as a means of providing personal spending power, but also as to protect their lives from unexpected factors such as typhoons sweeping over the islands, waves and fires hitting the islands, and so on.

The three of them were relieved from the days of fishing, and began to do other more interesting things, such as making more beautiful clothes out of book leaves, learning to cook better food, and began to build small huts, and a comfortable island was formed, and attracted the inhabitants of other small islands to live here, and the arrival of other residents meant more wealth, so savings also created capital, and expansion was the power of capital.

Soon, the legend of the luxurious life of the island spread to other islands, where the people still relied on fishing with their bare hands, and in order to pursue a better life, a large number of immigrants followed, and the increase in productivity meant that more people could be fed, and some of the new immigrants borrowed fish from the old residents to reclaim the land and grow crops, and people no longer had to eat fish every day, and some people entered other commercial fields, and life on the island began to be enriched, including construction, logging, manufacturing, and even some people could survive without raw materials.

Until now, the island has been bartered, for example, the spearmaker needs the services of a chef, and the chef does not need a spear, even if they can take what they need, but the value of a meal cannot be measured whether a spear is worth or not, the transaction process is cumbersome and inefficient, and in order to change this bad experience, the island needs new exchanges.

Since everyone on the island eats fish, it is only natural that fish has become a thing that everyone recognizes, and soon they began to measure the true price relationship between other items on the island and fish in terms of fish, and fish was the currency at this time.

The social division of labor is becoming more and more complex, and more and more islanders are deciding to earn money for serving others. The value of labor usually depends on the capital used by the laborer, and the more optimized the capital, the greater the value of the labor. In this small island, all the inhabitants can judge which capital will maximize the value of their labor, and they have three choices:

1. Save money and make your own fishing nets; 2. Take out a loan to buy fishing nets; 3. Work for those who have fishing nets

Given that the first option requires starvation and the second requires risk-taking, many people choose the third option to work for others, and that's when hired workers appear.

Liu Lang only wrote about the emergence of hired laborers, and from his story, it can be accurately inferred that hired workers did not appear because of oppression, but completely because of the expansion of productive forces, which is also what he wants to say, as long as the productive forces continue to expand, hired labor is the inevitable result, and it is by no means a means used by capitalism to oppress the common people.

For example, oppression is a piece of cake divided by ten people, some people want to share more, he uses some power in his hands to take other people's cake as his own, this is called oppression, but this person uses his own method to expand this cake tenfold, although there are still people who earn less than him, but these people's income is far more than the previous income, this is the wages of hired workers, as long as the cake continues to expand, their cake will increase, and their lives will get better and better.

Even if this article can't make those high-level executives change their minds, as long as it can provide them with an idea, it will not be in vain!

After Liu Lang finished writing, he stretched his waist and then fell asleep on the bed.