Chapter 240 - Outwitting the Central European Plan (Second Update: Subscription, Monthly Pass, Referral Ticket, Reward)
The trusts, also known as the capitalists' federations, monopolized the market with their great strength, inflated prices everywhere, and used their unscrupulous tactics to suppress the same industry outside the trusts as long as it was in the interests of the united entrepreneurs.
When the market was monopolized by the trusts, they tried to prevent prices from falling, and in addition, the capitalists colluded with each other to use their combined forces against the demands of the working class federations and the labor representatives in order to intensify the oppression of the proletariat and the toilers. Such an act, if not the original purpose of the trust, is often a necessary consequence of the trust.
Before 1914, the trust group was not prevalent in Western Europe, and the United States on the other side of the Atlantic had new opportunities and platforms, so the development of the trust group was earlier and more rampant than in Western Europe.
If Eric wants to suppress the "merger storm" that quickly unleashed in Germany after the war and curb its bad effects, he must first include his own enterprises and bear the brunt of them.
The ban on the Grand Trust is bound to meet with great resistance, and Eric is well aware of the danger of it, and if he does not do it, he will be ruthlessly suppressed by the economic circles and cause a large outflow of domestic capital. Fortunately, his clique still dominates the German financial scene, and his selfless actions will certainly win strong support from the Société Internationalis' camp, so he has made up his mind to reduce the risk as much as possible before the financial crisis.
The form of trust is not unique to the world of capital, but also to the socialist camp, of which the Soviet Union is the outstanding representative.
Large domestic enterprises that are restricted from "freedom" can crush their private small and medium-sized enterprises without much effort in a strong industry alliance, and inertia will naturally take shape, and if they want to heal their wounds, they must be determined to scrape their bones.
But trusts are not useless, everything has advantages and disadvantages, and the mentality and views of its decision-makers and interest groups are very important.
If it is higher than the production efficiency, it is obviously higher than the trust, centralized operation, unified sale, the cost can be reduced to the greatest extent.
Scattered enterprises often need to be based on their own needs, such as price, materials, quality, etc., separately inspected, carefully calculated, which undoubtedly wastes a lot of time and energy, at the same time, the patchwork production model can not be strongly coordinated, and the efficiency is relatively low.
The decentralized enterprise model is more conducive to government control, and it depends on the consideration of the decision-maker.
"Ladies and gentlemen, you heard me right, my exact words are antitrust, and starting with the Eric Group, my Mr. Minister, do you understand?" Eric spoke slowly, and he wanted Attorney General William Marks to hear clearly.
Max is a Jew, but also a German, and he has been in politics for more than ten years because he has been able to become Minister of Justice not because his family has money, but because he dares to petition and speak for the people. If Eric were to be "antitrusted", Max would undoubtedly be the first to stand up and wave the flag.
Of course, Max was also a shrewd man, and there must have been other purposes behind such a painstaking effort to weaken the interests of a small number of merchants, and it was inconvenient for him to say anything more on such an occasion.
He smiled and shouted to everyone in the chamber: "The Ministry of Justice has decided to actively support the proposal of Mr. President. ”
Five of the seven ministries have been supported, leaving only the Ministry of Food and the Ministry of Transport.
These two departments are the foundation of the people's livelihood in the whole country at the same time, and it seems that the power is not as secret as the Ministry of National Defense, nor is it as lofty as the Ministry of National Security, but they really hold the top position of the country's discourse, and they are also the anchor of the country's development and stability.
Food Minister Philip Shchedeman is a calculating, scheming old man, otherwise Eric wouldn't have let him sit in the coveted chair of the food department. At this time, in the face of the general trend, he will never strive to be a thorn.
"The Ministry of Food supports Mr. President's proposal." Scheadman hastened to vote in favor.
At this moment, all eyes were on Gellers, the transport minister who planned a four-year construction project in his "Report on National Infrastructure Projects" drawn up after the establishment of the German Federal State in late 1918, and he feared that his ambitions would be affected.
In four years, many traffic arteries could be built, and many old roads could be renovated and repaired, but with it came a large amount of capital investment, which also accounted for a large share of Germany's revenue in 1919, otherwise, the "National Report on Infrastructure Projects" would have become a dead letter.
The Wehrmacht's over-budget is big bad news for Güllers, and although he is not opposed to strengthening the defence capability, what kind of trickle will be left of the national finances after being squeezed and wrung out by such a large proportion of the Wehrmacht? The country's transportation construction will undoubtedly be affected as a result.
What could have been accomplished in the current cabinet will be difficult to accomplish after this major shock, and Gerrers feels very uncomfortable when he thinks that he is so old and still has to miss such a political achievement.
Eric was very able to understand Otto Gellers's mood at this time, and he did not intend to reduce the funds for the national infrastructure project, so he said loudly to Glers: "Don't worry about the construction funds of the Ministry of Transportation, this is also the foundation of the country's development, and I promise you in the name of the president that I will give them a lot of money until the proposal in the "National Infrastructure Project Report" is gradually completed." ”
Everyone present understood that the money must have been taken from Eric himself.
One is the personal funding of the president of the Hansa Felt Palace, the second is the corporate sponsorship of the Eric Group, and some of them have to be raised by other means, which can be party fees from various parties or even from private enterprises.
Because the savings of the Hansa Felth Palace and the almost deficit of the Eric Group are not enough.
Eric set his sights on Thoth, who had always been reticent.
Mr. Toth didn't see Eric's hint, and he didn't expect Mr. President to expect something from him, so he reacted when he was reminded by someone next to him: "Oh! For the right and right, I will also give appropriate support and appropriate support within my ability. ”
The clever Brauchitsch also quickly stood up and said: "The Air Force needs to build a large number of airport roads, which must require the help of Minister Gerrers, and if it is possible, the road from the main road to the airport, including all the main defense roads, will be built at the expense of the Ministry of Defense." ”
Brauchitsch was clever enough to understand what Eric meant, and Eric nodded approvingly.
Seeing that the president was so thoughtful, and the Ministry of Defense also lowered its profile, coupled with the support of the presidential palace, the Eric group and the Toth family, considering that the overrun defense budget this time is not a perennial plan, and the special circumstances do not affect the overall planning of the country, and at the same time, private financing can be used to complete infrastructure projects, so he had to get off the donkey when he saw the slope.
"The Ministry of Communications has resolutely supported Mr. President's proposal after repeated discussions, and there is no objection!" Grads finally relented, and voted in favor of it convincingly.
At this point, the meeting unanimously approved Eric's overrun defense spending proposal. As soon as Gürdes finished speaking, Paul von Hindenburg, who had been standing behind Eric, began to applaud, and the atmosphere in Hall 1 became harmonious.
If the proportion of the national defense budget exceeds the limit, the financial support for other construction industries in the country will be reduced.
This seemingly uncost-effective approach on the surface is actually the most effective and direct way for Eric to control the economic bubble, and it is also one of the ways to stabilize the domestic industrial production index and ensure the sustainable and healthy development of the national economy.
The industrial production index is the physical quantity index of industrial products compiled by the weighted arithmetic average, which is a common indicator used by Western countries to calculate and reflect the speed of industrial development, and is also the preferred indicator for prospect and market analysis.
The industrial production index is a general term for calculating the total index based on the production volume of representative products, dividing the reporting period by the individual index of product output obtained in the base period, and weighting the industrial added value to calculate the weight. According to various data, the average index of industrial production in the United States in 1919 was 52, and by the end of 1920, the average had increased to 57.
The index in Germany was higher at the same time, with an average of 54 in 1919, 2 points higher than that of the United States, and by the end of 1920, the German average index had reached 67.
Steps must be taken to suppress this unplanned development, otherwise it will not be the United States, but the German Confederation, that will be the first to suffer from the Great Depression.
Even though the Great Depression in the United States was caused by the market's self-regulation, it is also inextricably linked to the government's inaction, and the government's intervention may violate the laws of the market economy, but the state has a natural obligation to control this risk, and Eric used his prestige in the political circles to intervene in this economic storm that may be very bad and turn the danger into a disaster.
At this time, Germany replaced the original series of "reparations events" with market squeezes, resulting in uncontrolled industrial development in the United States more dangerous than the collapse of the stock market.
With the warning of the so-called lessons from the past, Eric did not dare to easily let go of the disorderly development of industry, but could only win steadily, even if the pace of development was temporarily slowed down, and a financial bubble could not appear. But it's easier said than done, there are too many details and too many problems.
And to resist opposition from all walks of life, which is simply impossible for a head of state without prestige.
Faced with this situation, Eric needs to rely on the power of the whole country to balance, from the Hansa Felth Palace and the Chancellery, to the representatives of private enterprises, all need to work together, otherwise, everything is not to be discussed.
Truth, this thing that is often grasped by a few people is very strange, if the vast majority of people want to understand, sometimes it is really difficult to reach the sky, but fortunately, Eric is good at finding a breakthrough, especially the strong support of Paul von Hindenburg, so that this embarrassing situation has turned around, and there is a difficult scene where everyone agrees with Eric's view.
The financial crisis is an invisible, intangible, and unpredictable "economic freak" that will come when, but it is not as completely unpredictable as people say, of course, in the absence of correct policy guidance and intervention, the excessive freedom and disorder of the market, and the irregularity of economic development, which is the fundamental cause of the disaster.
Eric, who had tampered with the course of history, was not sure whether the crisis that had spread around the world had begun in 1929, as recorded in the history books, perhaps sooner or later, but that intervention at this time would certainly have had a positive effect.
The smaller the German losses, the closer Eric's grand plan became. He must unite the forces of Central Europe before the economic crisis hits, and use domestic demand to ease the pressure.
Sometimes, military power can only be auxiliary, and Eric did not want the German army to become a panic in the world. CEIBS can only outwit!