What if the government runs out of money?

The East and the West have completely different approaches.

The West is accustomed to borrowing, and when it runs out of money, it goes to those rich people to borrow. Of course, if you borrow, you will repay it, and at the same time, you will pay a certain amount of interest, so that the government can not only be maintained, but also because of the existence of the loan relationship, the economically powerful rich people will support the government to avoid losing all their money, forming a good circle.

It is for this reason that although some economic giants in the West are not involved in politics, they have never lacked spokesmen in politics, and their influence is everywhere.

For example, the old Renault is such a person.

In the East, it is more straightforward, the government will raise taxes when it runs out of money, or find a "fat pig" with a bad reputation to slaughter, which can not only maintain the government's rule, but also kill chickens and monkeys to calm down public anger and divert social contradictions, which can be said to be counted in one fell swoop.

The difference between these two practices is huge, and it is basically the difference between "fishing in the dry water" and "flowing in thin water", and it is clear which is better and which is worse.

Gaspard's meaning is obvious, that is, he hopes that his employer Qin Zhiyuan will be like old Renault.

But Gaspard ignores one issue, and that is the relationship between Qin Zhiyuan and Thunder City.

Strictly speaking, Thunder City is also an asset in Qin Zhiyuan's hands, and Qin Zhiyuan takes money to subsidize Thunder City, which is equivalent to subsidizing inferior assets with high-quality assets in his hands.

This is fundamentally different from the relationship between the elder Renault and the City of Paris.

Gaspard apparently has his own opinion on this issue as well.

"No, no, no...... Absolutely not! Even if the general is the king of Corsica, the general should not use his own money to subsidize government operations. That breeds the inertia of the government, makes them lose their enterprising spirit, and in the future they will develop a habit of coming to the general to solve problems whenever they have them, rather than stimulating their own potential to solve problems, which is definitely not a good choice. Gaspard shook his head like a drum, and his attitude was resolute, with no room for manoeuvre.

"There is no essential difference between this, whether it is the securities in your hands or the LLL company on my side, it is essentially Qin Ye's money, at present, it seems that Thunder City and Trident City need a certain amount of financial subsidies, but in the long run, Thunder City and Trident City will have their own hematopoietic mechanism in the future, and the profits generated at that time will also be Qin Ye's, what does it matter?" Huang Fugui put on a look of wanting to theorize to the end.

It seems that Huang Fugui is also making continuous progress, otherwise it would be impossible for Huang Fugui to understand what the terms "financial subsidy" and "hematopoietic mechanism" mean, let alone be able to use them skillfully.

This is also very understandable, no matter what these subordinates are, Qin Zhiyuan is always making great strides, if they can keep up with Qin Zhiyuan's footsteps, Huang Fugui and they can always be Qin Zhiyuan's henchmen. Once the self-slacking lies on the merit book and sleeps a lot, it will definitely be replaced by people who have prepared for a long time, and countless Huang Fugui and Gaspard are waiting for the opportunity.

"You don't understand what I mean, and I'm not saying no, but I can't help without principle. Looking at Thunder City and Trident City objectively, they are both a process of development, as decision-makers, or as rulers, what we have to do is not to forcibly interfere with the development of Thunder City and Trident City, but to provide the necessary environment and policy support, so that they can complete this process of transformation by themselves. Gaspard also knows a lot about social operations.

"Then the monetary subsidy is considered to be policy support." Huang Fugui didn't give an inch.

Since Gaspard joined Qin Zhiyuan's subordinates, Huang Fugui has an obvious sense of crisis.

Before Qin Zhiyuan's subordinates, they were a group of martial artists who only knew how to carry guns and fight, Huang Fugui was a rare scholar, although his status was not as important as Chen Kangjian, but he was also an indispensable figure. Gaspard's arrival sounded the alarm for Huang Fugui, if he can't go further, then it will be eliminated sooner or later.

Huang Fugui doesn't want to be eliminated.

Huang Fugui has a feeling that as long as he follows Qin Zhiyuan, his life may reach a height that he can't dream of.

"Yes, it is true that it can be subsidized, but this subsidy must be limited in time and scale. Even if Thunder City and Trident City have their own hematopoietic mechanism in the future, the general should not ask for it indefinitely, in short, in a mature social system, the ruler cannot interfere too much in social operations, but should protect the normal development of society. Gaspard spoke eloquently.

Gaspard is talking about the way in which the economy has been proven to work over the past century, the so-called "free economy." The free economy is similar to the "wu wei" in the ancient Chinese Lao Zhuang thought, which advocates that the economy should be freely regulated by the market, and "free balance" is the core idea.

The liberal economy, while proven to work, is an economic idea born in the Victorian era that is no longer relevant to continue to be a classic.

If we follow the original laws of historical development, after the world war, there will be a five-year "Great Depression" starting in the thirties, and then state capitalism will come into being.

Qin Zhiyuan's current large-scale construction of Corsica is actually using the power of state capitalism. This has some similarities with "Keynesian economics", which will be born more than ten years later, but it is not identical.

Huang Fugui has now learned a little bit of superficial knowledge in economics, which is not comparable to Gaspard. But in front of Qin Zhiyuan, Gaspard's economic propositions lagged behind.

"There is no need to discuss this issue too much, but one thing must be clear. In Thunder City and Trident City, the city government cannot let the economy go unchecked, and key enterprises and industries related to the national economy and the people's livelihood must be under the control of the city government, and the private economy can become an effective supplement to the social economy, but it absolutely cannot occupy a dominant position in the market economy. "Qin Zhiyuan has experience.

Whether it is "state capitalism" or "liberal capitalism", the fundamental purpose is to promote social and economic development. "State capitalism" may be a little better than "own capitalism", but it has not yet reached the point of breaking through the sky.

When the "Keynesian theory" was first born, it was regarded as the "bible" by economists from all over the world. The "macroeconomics" he founded, together with the "psychoanalysis" created by Freud and the "theory of relativity" discovered by Einstein, are called the three major revolutions in human knowledge in the 20th century.

In the sixties and seventies of the 20th century, the "Keynesian theory" indeed guided the golden age of economic development in Western society, but his "inflationary" means also caused large-scale inflation in the seventies.

Qin Zhiyuan's ideal economic model is a market economy model under the guidance of the state, which is somewhat similar to China after the "reform".

This model may initially be slow to grow because of the heavy burden on the government, but over time, the advantages of this model will become more and more apparent, and the advantages over the Western economic system dominated by the private economy will become more and more great.

In fact, before the accident of Qin Zhiyuan in another time and space, China's advantages of "concentrating on big things" had been fully revealed, and the coordination and utilization of social resources were incomparable to those of Western governments.

(To be continued.) )