It's not a shame to talk about the economy in front of the boss, Zhu Di is used to it, since the boss said this, he opened his mouth to ask.

"As you said, the land ceiling is limited, there is so much food, and food is inseparable from the people, and if there is less food, people will starve to death."

"What's the use of no amount of silver that can't buy food?"

Zhu Gaochi smiled, this is the difference in understanding of economic theory, the economic theory of traditional agricultural society, and the economic theory of industrial society.

This idea persisted to the next generation, such as the concentration of the population on the land in order to increase food production, which was a relatively naïve idea and a contrary to industrial theory.

Including some mistakes that economists make.

It is used to blame backward countries for the low quality of labor and the wrong mode of production, and to explain the backwardness and inability of these countries to achieve industrialization.

He even suggested that he should spend money to run a school first, which completely misunderstood the causal relationship.

The same mistakes of old empirical perception are made, and the idea of concentrating the population on the land is the same as the interest.

"In a society dominated by agriculture, there is a lack of a market, so it is necessary to concentrate the population on the land, and we want to solve the problem of surplus manpower."

"So even if there is a new technology, because there is no huge market, as well as sufficient purchasing power, and commercial transportation channels, the original supply bottlenecks, etc., businessmen do not dare to invest rashly."

"As my father said, there is a limit to food, but the market has not developed, and industry has not developed."

Zhu Gaochi did not underestimate this problem.

This problem could not be solved in many countries in later generations, and many countries were still stuck in the production mode before the industrial revolution.

It seems that there are more factories, some modern goods, cement roads, buildings and cars, but in fact, the production mode is still the traditional model.

Britain was blessed with the natural development of the first industrial revolution, and even Renaissance Italy had to learn from Britain.

Western countries have gradually succeeded in learning technology from learning technology to learning production models, and it is no longer so easy for other countries to learn in later generations.

The success of the Chinese model has shocked the world.

And the country's experience also allows Zhu Gaochi to stand on the shoulders of giants.

"Our Daming is invincible inside and outside, the country is peaceful, and we have the conditions for the development of industry, and under the dispatch of my Yan Wangfu, the Northern Parallel Province can create a market without a market."

"What's more, I already have a certain foundation, so the difficulty is even lower." Zhu Gaochi's face was confident.

Countries that have not succeeded in creating a politically stable, unified market that can support large-scale production will have to stay permanently at the level of a subsistence small-scale peasant economy, in a Malthusian equilibrium.

No matter how much the United Nations, the IMF, the World Bank, and the rest of the countries provide assistance, as well as financial support, and how they engage in the "****** and the Arab Spring, these countries will not be able to industrialize.

"Industry raises people's incomes and increases people's incomes, but the food people eat has not changed, and the stomach is still the same belly, and it can't hold more food, so the money used to buy grain is still the same money."

"If you put that extra money at home, and put it in the cellar like the rich man, it will be scrap copper and rotten silver."

"And the development of industry can provide abundant and cheap goods, and stimulate people to buy industrial products with money."

"For example, new coal stoves, honeycomb coal, railways, fertilizers, coal black, and so on."

"Grain has a shelf life and cannot be preserved forever, and people will not use all their excess income to buy food that cannot be preserved forever."

"So the old impression in my father's mind that people will use money to buy food is actually a wrong concept."

Zhu Gaochi said affirmatively.

In later generations, only a small part of the family income was used to buy food, and most of it was used for consumption, and if all income and food were equal, as the traditional belief, it would not provide so much food.

And people don't buy so much food, because it will be wasted and won't be able to eat.

The difference can be made very clear by comparing it around 50 years ago.

Under the country's new distribution model, a market has been created to promote technologies that are more efficient and require less labor.

Instead of creating a large number of people who have lost their jobs and plunging the economy into recession, as feared, a virtuous economic cycle has been formed.

In the era of reform and opening up.

The farmer who still guards the traditional field, whose income is still only enough to fill his stomach, leaves the field to join the industry, and turns from a farmer into a worker.

Not only will the workers' income be enough to fill their stomachs, but the surplus income will be used to buy the rest of the industrial goods.

From then on, the peasants envied the workers, and the rural people envied the city people.

But the people in the city ate as much as the peasants, and what changed was that the workers bought the rest of the industrial goods with their wages.

In other words, it is the interchange of the value of industrial goods and the value of industrial goods.

Creating a way to support large-scale production is at the forefront, and it is also the core of the failure of many stable countries, and even the economic regression of many countries.

So it's not that you succeed with factories, those stable countries that have acquired technology and built factories are not as successful as China, and the difference is here.

This change is known to the world as the Chinese model.

It is inconceivable that an agricultural country, in an environment where the outside world is watching, can directly evolve into an industrial country through the efforts of a generation.

After listening to the eldest son's words, Zhu Di still couldn't imagine it.

Like the people, he decided in his heart that food was the most important thing, and this idea was not wrong.

But he is a vassal king, and he is a famous monarch, and he is very human in terms of vision and vision.

Zhu Gaochi's words were clear, and he really couldn't find loopholes.

Even if a family saves grain, it will only save two years of grain at most, ten taels of silver, and no one does it.

It's not a chaotic year and the way of heaven is not good.

"How to shift their eyes from food to commodities from the hands of the people, the more industrial commodities on the market, the more people will have to buy."

Zhu Gaochi is very sure.

People are social animals, and when the stomach is satisfied, there will be other needs, and this demand will make the people take the initiative to pay for it.

Let's buy three major pieces.

What your neighbor has, so should your own family.

In the future, people who lie flat will not see saving money, not spending anything, and buying and buying is the norm.

In the book A Peaceful World, the poor Sun Shao'an's family also thought of a way to buy their favorite goods.

Even Yang Bailao, a tenant in the old era, gritted his teeth and bought a red-headed rope from his daughter.

Zhu Di digested it, somewhat understood the boss's thoughts, and seriously raised the questions he saw.

"The common people are accustomed to saving, and I am afraid that they will not use their excess income for consumption as you wish, and probably save it underground like the rich man of the land, as you say."

Hearing Zhu Di's question, Zhu Gaochi was not stumped.

"Food is a necessity, but it is also a very inelastic commodity, we have to eat every day, but the amount is limited."

"The rest of the industrial products are commodities with great elasticity, and people's demand for these commodities may not be needed, or more may be better."

"If the people don't think they need it, it's a failed commodity, and it can't stimulate the people to consume."

"So how to make the people have as many of these industrial commodities as possible, we need to create the commodities that the people need."

"Seven things to open the door, firewood, rice, oil, salt, sauce, vinegar, tea, and coal are what the people need, and they can't do without it."

Before entering the oil and gas age, in the coal age, coal was a necessity in the lives of ordinary people.

"When honeycomb coal is used, coal stoves are needed, and in order not to waste excess firepower, people will get used to boiling hot water, so they will buy kettles."

"With a kettle, a kettle that needs to be filled with water, and with a constant supply of hot water, people will wash diligently, and when there is a need for towels, they will start drinking tea."

"Didn't these many needs come out of nowhere?"

"When these things are popularized, everyone has to buy them, and the people who don't buy them mean that the conditions at home are not good, and if the conditions are not good, it is not easy to please the mother-in-law."

"In order to please the mother-in-law, the people gritted their teeth and wanted to buy it."

"When these goods are popularized, then better products will be launched and the people will be forced to continue to buy, if anyone does not buy them, won't they be inferior to others, inferior to others, and not easy to please their mothers-in-law."

Zhu Di was speechless.

Every time I talk to the boss about these things, the topic is always inseparable from the mother-in-law.

Zhu Gaochi found Zhu Di's face, and he couldn't help it, begging the mother-in-law itself is the need of people to meet their stomachs.

In order to marry a better man, the mother-in-law will dress herself up more beautifully, and the demand for goods is born.

The people always have to compare and compare whose life is better.

It is also for the sake of succession.

"So as long as the industry develops and the people increase their income, the market will be created."

"But my father is worried about the size of China Heavy Industries, which is also right, so we need to establish a way to support large-scale production, that is, to create a market."

"The more concentrated the workers, the larger the production capacity, and the more technologically advanced the factory, the larger the market."

The reason why the Chinese model shocked the world is because the growth rate that supports large-scale production methods is incredible.

In a nutshell.

The growth rate of the market violates the principle of natural development of industry, and it takes a generation to create the market demand volume reached in the West for hundreds of years, and meets the sales channels of the geometric increase in factory production output.

Other countries are also developing, but the speed of development is far less than that of China, because their market cannot support China's speed.

This is Zhu Gaochi's big killer.

Allocation market.

And this kind of victory was not born out of thin air, the country also experienced defeat, and on the experience of defeat, it crossed the river by feeling the stones and redistributed, so as to get the victory.

The speed of China Heavy Industry is very amazing, will it be as speculated by the outside world, the things produced will not be marketable, Zhu Gaochi is not worried about this.

If according to the British theory of the industrial revolution, it is indeed impossible to meet his requirements, but the Chinese model can allow the Ming Dynasty to complete the initial industrialization within a few decades, and it can also solve this problem.

(End of chapter)