Chapter 71 The National Economy (Part II)

Zhang Jiashi does not completely deny the yeoman peasant economic system, but if it is done in a short period of time to restore the national strength of a country, especially in a short period of time, the yeoman peasant economic system will undoubtedly not be able to achieve this goal.

And one thing that Zhang Jiashi thought about was whether it was more appropriate to completely liberalize the market trade policy, or whether the market guided the economy was more suitable for the current Qin Empire.

The economic strength of the war was very important, because even during the time of the First Emperor, the general economic environment of the Qin Empire was not very abundant due to the continuous rise in national engineering and military spending.

Otherwise, the "Qin Law" revised during the period of the First Emperor would not have been punished with a fine or the like.

And this is also manifested in the commoners, that is, the purchasing power of the civilians of the Qin Empire is actually very lacking, otherwise, just a "punishment" such as a fine would not have led to the intensification of bandits in the Kanto region.

It is obvious that the vast majority of Guizhou at that time could not support expenditures such as "two fines" or "two shields".

This has also become a headache for Zhang Jiashi.

Because of Zhang Jiashi's commercial exhibition, even if it is mainly "people-oriented", but the lack of purchasing power makes Zhang Jiashi unable to do this even if he wants to open up a wide range of financial channels.

Because the money of ordinary people is like this, even if they sell some relatively cheap and high-quality goods, I am afraid that many people are greedy and suffer from shyness in their pockets......

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The free market economy is a concept that began to appear formally after the gradual development of capitalist society.

In later generations, the market economy was an economic system in which the production and sale of goods and services were guided entirely by the free price mechanism of the free market, rather than by the state, as in the case of a planned economy.

Planning and the market are the two basic means of resource allocation. In a market economy, there is no centrally coordinated system to guide its operation, but in theory, the market will achieve a self-organizing effect through a complex interaction between the supply and demand of products and services.

Proponents of the market economy often argue that the self-interest pursued by people is in fact the best interest of society. Theoretically, the market economy is a free economy, a fair economy, and a civilized economy with clear property rights, but in reality, all these are economic forms that make mandatory adjustments according to the market demand through market exchange rules, so there are very big defects in the actual operation process.

In the history of the world, the transition from the agricultural age to the industrial age began in Western Europe. From the 14th century to the 15th century, Europe encountered an unprecedented crisis, and successive famines, plagues and wars brought the entire European economic and social development to an almost complete standstill, which formed a strong contrast and contrast with the prosperity of ancient China and ancient India at that time, and made many Europeans venture to explore the routes to the East.

In 1492, Columbus arrived in the Americas, the European powers began to carry out large-scale colonial aggression around the world, the world market expanded dramatically, stimulating the rapid development of British factory handicrafts, a large number of farmland was forcibly converted into pastures, a large number of farmers were forced to leave their homes, into the handicraft workshop, as wage workers, known as the "enclosure movement", also known as the "sheep cannibalism movement".

In 164o there was a revolution in England, and by 1688, after a long struggle and three iterations, a constitutional monarchy was finally established.

From the 6o years of the 18th century to the 3o years of the 19th century, Britain took the lead in completing the industrial technological revolution and realizing the large-scale production of machines. Subsequently, major countries such as Europe and the United States have successively completed the industrial technological revolution. After the Meiji Restoration in 1868, Japan in Asia quickly completed its industrialization.

At the end of the 19th century and the beginning of the 20th century, European and American countries successively entered the monopoly stage from the stage of free competition, and throughout the 2o century, the degree of monopoly in the economies of Western countries became higher and higher, and in the 21st century, almost all walks of life have formed some huge monopoly companies, and oligopoly has become the dominant market structure.

In the first half of the 2O century, the great powers fought two world wars for their spheres of influence. After the end of World War II in 1945, the United States replaced Britain as the number one power in the Western world.

In the more than 60 years since the end of World War II, the world economy has undergone great changes. Generally speaking, the vast majority of countries in Europe and North America, as well as Japan in Asia, have entered the stage of mature market economy. However, the vast majority of countries in Asia, Africa and Latin America are still in the transition from traditional small-scale peasant economy to modern market economy, and their level of industrialization is far behind that of Europe, the United States and Japan.

From the perspective of these historical exhibitions, the foundation of the market economy system is the substantial increase in industrial production capacity.

The characteristics of the market economy are five:

(1) Marketization of resource allocation:

Resource allocation refers to the general term of the means and methods of allocating resources in all aspects of social economy in order to achieve the optimal and appropriate state of economic behavior. The fundamental difference between the market economy and the planned economy lies in the fact that the market economy does not allocate resources mainly on the basis of customs, habits, or administrative orders, but makes the market the link between the entire social economy and the main mode of resource allocation. In the course of economic operation, all kinds of social resources enter the market directly or indirectly, and prices are formed by market supply and demand, which in turn guides the free flow of resources among various departments and enterprises, so that social resources can be rationally allocated.

(2) The rights, responsibilities and interests of economic actors are clearly defined:

The economic behavior of economic actors, such as households, enterprises and governments, is subject to the laws of market competition and relevant legal guarantees, and is endowed with corresponding rights, responsibilities and interests, and becomes different stakeholders with clear awareness of benefits and risks. If the rights, responsibilities and interests of economic actors are not clearly defined, then it will be difficult for the micro level, especially enterprises, to become the main body of real independent market competition.

(3) The basis of economic operation is market competition:

From the concept of market economy, the effectiveness and fairness of competition are generally emphasized. In order to achieve the purpose of fair competition, the government creates a suitable external environment from the legal point of view to provide enterprises with opportunities for equal competition. For example, the antitrust law of the United States, the anti-restriction of competition law of Germany, the anti-monopoly law of Japan, and so on. Only by bringing the activities of all market stakeholders into the framework of the law can we maintain the orderly and normal operation of market competition.

(4) Implement necessary and effective macroeconomic regulation and control:

In the period of free competition market economy, the economic function of the state is mainly to protect the order of economic development and not directly interfere in economic operation. However, under the conditions of the modern market economy, the state's intervention and regulation of the economy has become a regular and stable institutional requirement, and the government can use economic planning, economic means, legal means, and necessary administrative means to intervene and regulate the economy. Its purpose is, on the one hand, to provide conditions for guaranteeing the normal operation of the economy, and on the other hand, to make up for and correct the defects of the market.

(5) Internationalization of economic relations:

The modern market economy is an open economy, which enables the economies of all countries to enter the international cycle in line with the principle of mutual benefit and making use of their strengths and avoiding their weaknesses. The internationalization of economic activities is not only manifested in the development of international import and export trade, capital flows, technology transfer and intangible trade, but also in the general recognition and participation in various rules and practices for coordinating international interests. The common characteristics of all the above-mentioned market economies are worthy of reference for the establishment and improvement of the market economic system in the developing countries, and at the same time, the different characteristics of the market economy of the countries should also be used for reference.

However, one of the biggest flaws of the free market economic model is that it must greatly increase industrial production capacity, otherwise even if Zhang Jiashi intends to implement a free market economy, I am afraid that he will end up with no problem because of insufficient production capacity.

And that's just the best outcome.

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The state-directed economy is also known as the planned economy.

In later view, the planned economy, or planned economic system, also known as the command economy, is an economic system in which the state plans all aspects of production, resource distribution, and product consumption by the government or consortium in advance.

Since almost all planned economic systems rely on the government's directive planning, the planned economy is also known as the "command economy".

Compared with the market economy, the planned economy refers to a highly centralized and inefficient social and economic system that is different from the market economy. Planned economy, as the name suggests, is to develop the economy in a planned and planned manner. In this way, the blindness and uncertainty of the market economy exhibition are avoided, and the harm caused to the social and economic development is avoided. Such as: duplicate construction, vicious competition of enterprises, factory closure, unemployment of workers, unbalanced regional economic development, social and economic crises and other problems.

A planned economy, or planned economic system, also known as a command economy, is an economic system in which production, resource allocation, and product consumption are planned in advance. Since almost all planned economic systems rely on command planning, the planned economy is also known as the command economy. It is the government that solves the three basic economic problems, and the so-called three economic problems are: what to produce, how to produce, and for whom. Most of these resources are owned by the government, and the allocation of resources by the government's directives is not influenced by the market. The remaining three economic systems are the market economy system, the traditional economic system, and the mixed economic system.

The planned economy is the essential characteristic of the socialist system and is a basic principle of socialist economic theory. The logical reasoning of this viewpoint is that socialized large-scale production links all sectors of the national economy into an organic whole, and therefore objectively requires that a certain proportional relationship be maintained between them.

The first large-scale implementation of the planned economy was in the later Soviet Union.

During the Civil War, as the Soviet Union's small-scale peasant economy was no longer able to support state finances, its leader Lenin finally mentioned in Lenin's Draft Programme of the Russian Communist Party in March 1919 that "the Russian Communist Party will strive to implement the most radical measures as quickly as possible to prepare for the elimination of the currency" and called for "the replacement of trade with a planned and organized distribution of products throughout the country".

That is to say, the abolition of commodity production, the abolition of the market and the market economy, and the management of economic life through the "planned and organized distribution of products" by the state.

And during the civil war in the USSR, the Russian Communist Party adopted the "most radical" form of war communism in accordance with Lenin's above-mentioned ideas.

This mainly includes the following:

(1) In agriculture, the "grain collection system" is implemented.

This is the total amount of grain to be collected by the state, which is determined by the state and apportioned from top to bottom, up to each peasant household. It is levied on the peasants at a fixed price set by the state, and those who harbor grain are severely punished. The system also stipulates that not only grain, but also other important agricultural and animal husbandry products, such as potatoes, vegetable oil, cotton, hemp, leather, etc., will be forcibly expropriated. This system of conscription is actually a kind of compulsory and gratuitous deprivation of the peasants. The imposition of a state monopoly on these products and the prohibition of private sale of these products has abolished the sale and market of goods.

(2) Large, medium, and small enterprises shall be nationalized in industry without exception, and for very small enterprises (less than 5 employees), state supervision and orders shall be implemented.

(3) In the field of circulation, free trade will be abolished and the exchange relationship will be materialized.

(4) The Supreme National Economic Council and its subordinate General Administration shall directly manage monopoly planning.

By the end of 1919, at the height of the implementation of the "policy of war communism", the whole life of the country was fully materialized and settled without currency. In January 192o, a decree was issued on the abolition of the People's Bank, announcing the merger of the banking institutions with the Ministry of Finance. Pravda also wrote a monograph on this issue, affirming this practice of abolishing banks and abolishing money.

As a result of the above-mentioned measures, the civil war was won by the centralized distribution of troops and cities by the hands of the state in conditions of extreme poverty and war in the country, which temporarily ensured the supply of troops and cities. However, the system of expropriation of agricultural and animal husbandry products implemented by communism during the war dealt a heavy blow to the peasants' enthusiasm for production, caused a serious social and political crisis, and caused the people's resentment to boil and the people to riot everywhere. Most prominently, the Antonov peasant uprising and the Kronstadt sailor uprising were born, which put the Soviet regime in grave danger of hanging by a thread.

The banning of commodity production and the market economy first violates the objective law of society. If there are small producers, and there is a decentralized economy, it will inevitably have to be exchanged through the commodity market, otherwise the economy will become a stagnant water, closing off all sources of wealth.

After the implementation of wartime communism, the peasants lost their enthusiasm for production, and a large amount of land was wasted; urban industry and commerce were depressed, factories were closed down in large numbers, workers were unemployed, the economy was in disarray, and industrial and agricultural production declined sharply.

By 192o, the national economy of Soviet Russia was destroyed to this extent: the output value of large industry was reduced by 6~7 percent compared with the pre-war period, and the annual smelting of pig iron was only 116,000 tons, which was about 3% of the pre-war period; coal production was reduced by 2/3 compared with the pre-war period, oil production was reduced by 3/5, and textile output was reduced by 19/2o; agricultural output value was only equal to 65% of the Tsarist era; and 3o% of the railways were suspended.

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