A leap in engineering technology can greatly reduce the cost of these wonders, and innovation in management systems can greatly reduce the duration of these wonders.

What's even more perverted is that the traversal has opened Pandora's box and released a devil that can extract original capital from the future - the credit innovation system.

To put it simply, the wealth and resources of the whole society are almost fixed over a five-year cycle. There is a limit to the resources that individuals, organizations and countries can mobilize for investment. But with this credit innovation system, an asset with positive returns can be magnified tenfold and hundredfold. Individuals can invest in human capital by swiping credit cards, applying for credit loans, and paying tuition fees. Organizations can also use credit to finance capacity expansion. The state can also issue government bonds, and overdraft future revenues to invest in ultra-long-term investments such as infrastructure and education.

Although this kind of borrowed money will inevitably cause inflation, the crazy suppression of costs in the raw material industry through the endless stream of technology will lead to deflation faster than this inflation. For example, prices in the city of Guangzhou have fallen by almost half in the three years since the founding of the People's Republic of China, because the grain production in the surrounding villages has more than doubled after the use of chemical fertilizers and new agricultural tools, and the price of grain, which accounts for the majority of labor costs, has fallen by 70% (the use of new agricultural machinery has greatly reduced the need for labor for sowing and harvesting). It is reasonable that grain prices should plummet to increase grain production, but they will not fall too much under the grain reserve system established by the company and the vigorous demand for raw materials in the brewing and feed industries. Farmers with money in their hands naturally consume industrial goods as their income increases. The habit of saving and improving education and medical security are the confidence and guarantee for the rich people to dare to spend money.

For example, the expansion of production capacity and competition in the consumer goods industry are even more exaggerated, and the prices of consumer goods such as cloth, firewood, oil, salt, sauce and vinegar have been reduced by at least two-thirds. Consumer goods such as pen, ink, paper, inkstone, pots and pans, which were originally more valuable, are almost a trend of jumping off buildings and selling off, and their prices have plummeted. The booming development of fast-moving consumer goods (self-procurement) and the restaurant industry also absorbed a large number of workers (to be honest, the extremely developed civic culture of the Song Dynasty benefited from a thriving economy and a lot of urbanization). The development of consumer durables and housing has become even more terrifying, with factories and owners producing furniture, clothing, bicycles, horse-drawn carriages, kitchenware, sanitary ceramics, building materials and hardware almost all anxiously waiting to stop work and recruit labor.

This fierce competition in the consumer goods industry is driven by the diffusion of technology through partners. Under the premise that the market demand continues to increase with the price reduction, the speed of the price reduction of the two papermakers, whose costs have long been falling to the heel with the support of the technology, only depends on the determination of the loan to expand production capacity.

An ordinary paper mill is not competitive in front of the partners who have been granted the technology. After being pushed to the brink of bankruptcy, he joined this and the new large paper mill as a journeyman or technician. The original workshops had to buy their land and real estate equipment at a discount to the new owner paper mill in order to keep their business.

This practice is also the standard of the cross-public, if you want to become a partner, you have to do this, and if you don't want the bankrupt competitor to dilute the industrial shares that lay their golden eggs, you can only go through the crowd to go bankrupt. In the various industrial sectors and markets where lakes become oceans, capital is full of efficiency and dynamism. The share-holding, middle-class industrial workers created by the Crossing were the mainstay of the empire's great cause.

The soaring price of labor due to competition has also filled society with purchasing power. This is different from the Gilded Age of the late 19th and early 20th centuries in the United States (1873 AD, Mark Brown). Twain published the novel The Gilded Age. Since then, people have used this term to describe the period of American history from the end of the Civil War to the beginning of the 20th century. The Civil War cleared the way for the development of American capitalism, which, together with the influx of immigrants and the newly discovered mineral deposits in the West, led to the rapid industrialization of the United States and the rapid growth of the country's wealth. By the beginning of the 20th century, the United States was already the most powerful industrial country in the world. Historians believe that in this historical period, commercial speculation was rampant, political [***] serious, many people made a fortune by improper means, and took pride in showing off their wealth, and some people said that this "golden age" was just a "gilded age") The big bang is the core theoretical product of economics that can support the ultra-high-speed development of the economy. The great changes of this era have led to the early entry of the world into the industrial society, and the century that entered the information age in just 100 years is the miracle age of later textbooks.

Why is the growth rate so high in the era of planned economy? Is it because the economy is operating efficiently? Or is it because of the high proportion of investment accumulation? Or is it because of the high concentration of resource usage? Neither! Rather, it is the distribution system behind the state ownership, and the huge purchasing power caused by the relatively fair distribution has promoted the rapid progress of the economy. In terms of efficiency, what kind of system is comparable to a state-owned planned economy in which all consumer goods belong to the state? At that time, there was no inventory backlog at all, there was no excess capacity, and the only disadvantage compared with private ownership was that the rigid planning instructions of the state-owned system led to the producers not having the incentive system of private ownership to work more and get more, and the lack of initiative and sense of ownership, resulting in poor product quality or the wrong way. What lack of surname, lack of efficiency, that is inconsequential details.

Every business owner expects to have an endless number of orders, which means that as long as society is in a seller's market, the economy can skyrocket. The Warsaw Pact system in the era of the planned economy of the Soviet Union was a market with almost unlimited purchasing power. If there are aliens, then the sensible thing to do is to include yourself in the integrated trade circle of the whole galaxy and play a supporting role. Earth is the same concept as Britain in the 14th century and the United States in the 21st century to other extraterrestrial civilizations that are more technologically advanced. The United States purchased 1 million tons of wool and lumber from the United Kingdom, which is enough for all industries in the United Kingdom to operate at full capacity for several years, and the American market is unlimited compared to the United Kingdom.

When Adam Smith wrote The Wealth of Nations, the concept was already in the minds of the British. This is also the reason why the British Empire eagerly tried to open the door of China, a large country with a population of more than 100 million, after the Industrial Revolution.

Economics is the same as war. Germany's definition of an ideal war was to use German weapons, with the Soviet Union providing winter equipment, Britain providing summer equipment, the United States providing food, France providing entertainment, the Finns covering the flanks, and the Italians facing the enemy. Then the definition of an ideal economy in all countries is the heavy chemical industry of Germany, the resources of the Soviet Union and the Commonwealth, the agriculture and service industry of the United States, the luxury industry of France, the market and industriousness of the Chinese, and the frugality of the capital. Why the Chinese market? Because the world's most populous country wants to consume, the biggest market is China.

The planned economy is a system of distribution according to demand determined by state-owned and collective ownership, which believes that it has created a rigid market that does not lack an incentive system and is imperfect, but this market has extremely purchasing power and scale effect in a self-enclosed market. The growth rate is extremely high at a relatively low base, but once it scales, this rigid system of dictates will lead to a sharp increase in the cost of the distribution system.

The superior surname of the market economy is the incentive system of more work and more rewards. The cause of the economic crisis is the failure to deal with inflation and the gap between the rich and the poor, resulting in a mismatch between purchasing power and capacity, that is, a mismatch between the market and capacity. (To be continued.) )