Chapter 178: Incentive Systems and Nouveau Riuqe

The ideal economy of the crossing crowd pays more attention to system and efficiency than to industrial structure. Because as long as the system and efficiency are perfect, the structure will naturally be perfect. As long as the system is guaranteed to be state-of-the-art, then the population will burst out with unimaginable power. Everything can be seen from the emergence of the contract responsibility system for joint production. Under a system where there is more money and more work, the government does nothing, and GDP can maintain double-digit growth.

The essence of the reform of the economic structure is to fundamentally change the economic structure that restricts the development of the productive forces and to establish a new system full of vigor and vitality. Its target model is to establish and improve a market economic system on the basis of upholding private ownership and distribution according to work as the mainstay, supplemented by other economic components and distribution methods. First, the market should play a fundamental role in the allocation of resources under the state's macroeconomic regulation and control, so that economic activities can follow the requirements of the law of value and adapt to changes in the relationship between supply and demand. Second, through the function of price leverage and competition mechanism, the allocation of resources to the links with better efficiency, and give pressure and motivation to enterprises to achieve the survival of the fittest; Third, it is necessary to make use of the market's advantages of being more sensitive to various economic signals to promote the timely coordination of production and demand, and to strengthen and improve the state's macroeconomic regulation and control of the economy in view of the market's own weaknesses and negative aspects.

The implementation of the details is that after the founding of the Chinese Empire, the monopoly of all salt, iron, tea, sugar, wine, alum, vinegar, spices and other commodities was abolished, and the corporate income tax and turnover tax were levied instead, the fiscal revenue increased by 20% at once, and these expensive goods became cheaper and cheaper under the competition.

The purpose of monopoly monopoly is to accumulate wealth and maintain centralized power. However, after the restructuring, the state can not only receive huge taxes when it participates in these companies, but also can receive huge dividends. It can also take off the hat of competing with the people for profit, which not only reduces prices, but also improves efficiency, and the quality of products has improved much compared with the past.

The reform of the economic system is not only limited to the tax system and monopoly system, but also includes the improvement and abolition of customs and domestic tax collection checkpoints, and various hardware facilities (docks, warehouses, stations, transportation facilities, etc.) to reduce logistics costs are also crucial. The system is software, although the software is very powerful, but the hardware is too backward to fully play the effect of the software.

Merchants and workshops who wanted to be promoted mainly to commercial capitalists and industrial capitalists had to be given matching power and political status. Therefore, it is particularly important to abolish the ideology of the ruling class, which values agriculture and suppresses business. The method of directly using taxes to promote the title is too naked, and it cannot reflect the level of Bai Jia, a professional politician, so after preparing public opinion. A new title statute was promulgated.

In addition to the traditional beheading, the discovery of new islands and land, the creation of colonies and settlements, the transportation and sale of goods in short supply to the country, the development of new minerals and land in the area under his control, the completion of his or her job for a number of years, the scientific worker who has made great contributions, the donation of large amounts of wealth and taxes, or the creation of a large number of jobs, etc., can be knighted.

That is, to encourage people to become explorers, colonists, business owners, and technologists. At that time, the Qin State carried out the Shang Dynasty reform, and the Qin State became a country of tigers and wolves, dominating the world. Britain also became a maritime power after the pirate Drake became an aristocracy, which shows the importance of the incentive system in the development of the country. The focus of incentives for business and commerce is not on money and tax breaks. Rather, it is to give business owners a political and social status commensurate with their contributions.

In fact, the founding of the People's Republic of China in 1940 was also the first opportunity to divide a large number of partners from agricultural capitalists and industrial and commercial owners into new aristocrats. The old-style military feudal aristocracy disappeared from Chinese history as early as the time when Song Taizu released military power. And those Jiangmen families and civil nobles who received titles during the existence of the Great Song Empire had long since been transformed into new nobles who were mainly engaged in industry and commerce before the founding of the country. The still conservative landed aristocracy and the imperial relatives and landlords of the old dynasty could only decline in the wave of declining price revolutions and urbanization.

Whenever Li Hao, who is so virtual that he can't stand in the virtual monarch once a year, he gives all kinds of honors and Danshu iron coupons to those newborn nobles, and there is always a sense of impact of the times. Most of the newborn nobles were given the opportunity to be knighted in their contributions such as expanding their territory, scientific and technological innovation, and paying huge amounts of wealth, which was completely different from the Qin and Han dynasties in the past, when they only had military merits, and the Tang and Song dynasties were knighted when they were old.

Since the enactment of the Ordinance to Encourage Navigation and Migration in 1942 to encourage trade and migration, new islands and resources have entered the empire's territory. A captain discovered an uninhabited island, erected a stone tablet on the island to declare sovereignty, and on a certain day, a certain year, month, and a certain person declared that all the space and resources of the island and its surrounding waters belonged to the Chinese Empire in accordance with the Regulations on the Reward of Navigation and Migration, and that as the discoverer and conqueror, he could receive 10% of the island's resource income for 20 years.

Explorers who discovered new islands either brought back large quantities of spice ore or route maps to produce these large islands, reaping huge profits and serving as a reward for their titles. Explorers who were short of money did not find valuable resources on the new islands. It doesn't matter if you get nothing, the state directly rewards 1 yuan per hectare according to the area of the island in exchange for the 10% of the income. Take, for example, the 3,155-square-kilometer island of Waiji. The explorer who discovered the island received a prize of 310,000. It is 10 times the cost of his hired fleet to explore, and he also got the lifelong viscount title that his family coveted, and he can get an annual allowance of 12,000 yuan until his death, and the income of the expedition is 20 times according to 30 years.

And the Long Yun family, a colonial star who established a spice plantation on Ambon Island, is a typical example of getting rich overnight. Although Ambon Island is not an uninhabited island, there were big cannibals who came here to buy spices for trade like the natives centuries ago, but there is no power of civilized countries here, and after establishing good relations with the natives, 2,000 acres of spice plantations such as cloves, cinnamon, pepper and other spices were directly enclosed. These carefully managed plantations are naturally more profitable than wild-harvested spices, which are less expensive and less expensive for intensive harvesting. After returning to China, he directly sent the various income certificates and appraisal reports of the plantations issued by Chenji Bank and Nanyang Asset Appraisal Agency to the stock exchange and bond exchange in Xinjing, and requested the public issuance of the stocks and bonds of his own agricultural reclamation company.

High-quality assets with top three ratings were naturally snatched up by investors after listing. 49% of the shares were sold as financing products circulating in the market, and the total share capital was expanded to 10,000 shares, and the 4,900 shares sold were priced by the underwriters at a sky-high price of 70 yuan per share. On the day of issuance, it was speculated to close at 165.5 yuan. The 2,000-acre plantation will not be able to produce within three years (seedlings and transplanted spice trees will not be profitable), but according to the assessment, after commercial production, 800 yuan per mu of spices can be produced, and this plantation can produce 167 to 2 million yuan worth of spices per year, with a net profit of up to 50 yuan per share after tax (after deducting costs, freight, colonial duties, and corporate income tax). That is to say, if you can't put into production for three years, you can buy this stock for 155 yuan at most, and you can return to your capital in 6 years at most.

In fact, the Long Yun family only spent less than 8,000 yuan of capital to lease the fleet, bribe the natives, stake land, and reclaim the plantation. That is to say, in the 500 days from Long Yun's family to the second day of the asset listing, his capital of 8,000 yuan became more than 810,000 yuan, and after returning the 9,700 yuan advanced by Chenji stock underwriting company, he got a return on investment of more than 10,000%. And that's just the cash payoff, and when you count the 51% of the unsold shares, the lucky winner made a 200-fold windfall profit.

Three years later, after paying more than 500,000 yuan in profits and taxes, he successfully obtained the first title in his life, a gilded lifetime title of a third-class viscount. Its value alone (the stock rose to 700 yuan, the middle 10 shares gave 40 shares twice, that is, the total share capital reached 250,000, the plantation expanded to 100,000 acres, planted more profitable rubber and oil palm, and the estimated annual output value exceeded 100 million) reached 60 million (lost absolute control, and the shares fell to 35%). Non-book wealth, that is, houses and other real estate in private names, also exceeds 10 million. In three or four years, he almost got 10,000 times the investment profit.

This speed is not much to promise compared to Major General Drake, no, it should be ten streets away from him. Francis. Vice Admiral Drake used his privateering license and his own pirate fleet to make a circle of Spanish Latin American colonies and only managed to make tens of thousands of pounds of private fortune (in 1580, Francis Drake became the first person in the world to personally complete a circumnavigation of the globe, and during this three-year voyage, Drake's fleet not only plundered the Spanish colonies in South America, but also attacked Spanish ports in Europe). Drake, who returned with a full load, brought investors 47 times the profit. As one of the funders, Elizabeth I received a dividend of £163,000, an amount almost equal to the government's annual expenditure at the time. But Drake didn't make much money himself, less than £20,000). Don't look at this relative number, just look at this absolute number, the wealth of the Long Yun family is all in his own pocket. And what about Drake? Although it shows what is fiduciary responsibility, the key is not to make a lot of money!

This astonishing wealth effect can only occur when the operation of capital reaches an astonishing height. It is this classic case masterminded by the Crossing Crowd that has inspired countless immigrants and explorers to venture out to sea. Exploration plus immigration, enclosure and land reclamation have become the mainstream of public opinion in the past ten years. (To be continued......)