Chapter 505: The Influence of Capital
The power of capital is powerful, and the impact on Australasia is definitely more than a star.
In just one month since the four-year plan was announced, foreign investment in Australasia has more than tripled, and in the latest month, foreign investment has reached more than 27.35 million Australian dollars.
Although the rate of capital investment in Russia may not be so large every month, there is no doubt that these investments can greatly stimulate the economic growth of Australasia, which has experienced a big explosion of economic and industrial growth in a short period of time.
These Russian capitalists are definitely the lucky stars of Australasia, and with the help of these people, Australasia's four-year plan is definitely not just empty talk, there is a great possibility, and even 100% hope of being realized.
This is a good thing, but it also brings some predictable problems.
First, Australasian labor laws had to be enforced in these Russian-invested factories.
The eight-hour workday, double pay for overtime work must be implemented, and the welfare of workers in these factories must be guaranteed.
This is quite a challenge for these Russian capitalists, who have never spoken of labor law or human rights in Russia before.
The previous government of Tsarist Russia allowed these capitalists to exploit the common people wantonly, and even the tsarist government was wantonly oppressing the common people.
But now it's different, now in Australasia, you have to listen to the Australasian government.
The Australasian government still attaches great importance to human rights, and the welfare of workers must also be guaranteed.
Since the beginning of the industrial age, the power of workers has been great. As long as the interests of the workers can be safeguarded, in fact, the interests of the common people covered by the working class are also protected.
The majority of the workers were civilians, which was the result of this era. Protecting the interests of workers can also protect the income of some civilians.
When civilians have an income and are able to support their families, they naturally do not think about rebellion and revolution.
There are two ways for capitalists to enter the Australasian market, and in addition to directly creating new companies and factories, another way is to acquire existing businesses.
Either way, it has a good boost to Australasia's economy.
After all, if the original enterprise is bought by the capitalist, the original business owners will definitely not sell it at a low price, but will choose the opportunity to sell it at a high price.
After all, the current development environment in Australasia is still relatively good, it has not been affected by the war, and the prevention of influenza is relatively perfect, so few companies go bankrupt, and most companies are in a profitable state.
The acquisition or joint venture of a part of the local enterprise will allow more Australasian business owners to have enough funds to invest in other industries, or improve their own living standards, in short, they will spend the money, which will play a good role in the circulation and promotion of the society.
Money is the best state for a country only when it is in a steady stream.
For example, in some more extreme countries, it will promote people's desire to consume. Some of the people's consumption is fed back to the government in the form of taxes, and some of it goes to other people's hands, and the whole cycle starts again.
In this way, the money will be circulated many times, and the promotion of the economy is unparalleled.
But if the people choose to keep the money in their own hands and not let it circulate, the circular promotion of the economy will be ineffective, and the economic growth will slow down.
Promoting people's desire to spend is a big problem for every government, but most countries will adopt a more modest approach, such as subsidies and discounts on some goods, to reduce the cost of promoting people's consumption.
This is not unavoidable for the public, after all, they do not suffer in general, and they can buy more cost-effective goods than before.
The most undesirable thing is to take all kinds of measures to force people to consume. The basic living needs of the people are squeezed to promote the circulation of money in society.
In this case, the people do not want to buy things, but have to buy things.
Although it is beneficial for the state, it will also greatly increase the burden on the people, which is not good news for the common people.
Arthur naturally wouldn't do this, after all, a casual action of the royal consortium can stimulate consumption in the market, and there is no need to use this kind of decision-making that is very immoral and loses prestige.
The government was still very strict with these enterprises controlled or created by Russian capital, not only to strictly supervise them in implementing the Australasian eight-hour working day, but also to supervise them to improve the system of protecting workers.
Only when all regulations are passed will these factories and businesses be able to open and operate in Australasia.
It is worth mentioning that the government has almost no preferential policies and subsidies for these new enterprises, but there are still certain tax reduction policies in industries and fields that are more important to the country.
Generally speaking, it is a tax cut of one to two years, which is not to treat these enterprises established by Russian capital well, but to encourage Russian capital to take root in the industries that Australasia and Arthur want.
Australasia is vacant in the chemical industry, light industry and some textile factories and construction companies.
There are still many big constructions in Australasia in the future, and it is still necessary to have enough construction companies.
What's more, these Russian companies are for the most part larger than those in Australasia.
Although the life of Australasian people is getting better day by day, this growth is slowly accumulating, and only a small number of people have made themselves rich by virtue of the great construction and development of the country.
As a result, the majority of businesses in Australasia are small and medium-sized enterprises with assets of less than $5,000, and less than 10% of businesses are large enterprises with assets of more than $10,000.
While it may not seem like much, ten thousand Australian dollars is not a small number at any time.
At the exchange rate, 10,000 Australian dollars is equivalent to 5,000 pounds, which is the value of 36,650 grams of gold.
Even according to the gold price of later generations, 10,000 Australian dollars is equivalent to more than 15 million assets, which can only be owned by a small number of people.
Now, after the influx of Russian capital, the number of 10,000 yuan enterprises in Australasia should be able to increase several times, and the number of 10,000 households will also increase.
The value of the Australian dollar is not low, even in British society, families with assets of 10,000 Australian dollars are definitely only a small number.
This is also the disadvantage of capital development. The wealth of a region is often controlled by fewer people, and the living standards of ordinary people are not really high.
Arthur's hope is to use his ability to improve the lives of Australasian people as much as possible.
If this four-year plan is successful, the next four-year plan will become the mainstream plan of the Australasian government in the future.
After all, the term of office of each cabinet government is only four years, and compared to the five-year plan originally proposed by Arthur, the four-year plan is more in line with the actual situation in Australasia.
Although four years was destined to be less than five, Australasia's policy was always carried out under Arthur's supervision and control, and the general direction never deviated.
Truth be told, the influx of capital also relieved Arthur.
With the addition of these Russian capitals, Arthur should be able to catch up in a very short period of time, at least to make up for the gap that he had fallen behind.
A well-developed country is healthy and its development potential can be revealed.
Although Australasia has caught up in some aspects, it has only been 19 years old, and there is still a big gap between it and those old countries that have been developing for a long time.
This kind of background is far from being reflected in the numbers. It is conservatively estimated that it will take at least ten years to close these gaps.
If the impact of World War II is included, it may not be until after World War II that Australasia can become a complete power in all aspects.
Although the benefits of capital have been enjoyed to the country, the disadvantages brought by capital to the country also need to be prevented.
In World War I, capital played a crucial role in the promotion of war. It is no exaggeration to say that some European countries and the United States are already under the influence of capital.
After the power of capital is expanded, it can even provoke wars between countries. From the beginning of capital to show its fangs, even the country's policies can be influenced by capital.
Not to mention World War I, even the future World War II, has the influence of capital. It seems that Hitler started World War II, but is there really no influence of capital in this? When pigs fly.
Even if there is no Hitler, there will be other Hitlers, and under the influence of capital, Germany will go to the battlefield, which cannot be changed by individuals.
The power of capital was vividly embodied in the United States in later generations. Behind every action of the United States, there is a figure of capital.
Because of this, Arthur is still very wary of capitalists. These people really did everything when they had the power, and Arthur was as jealous of the capitalist class as he was in Soviet Russia.
But fortunately, in the current Australasia, Arthur himself is the largest capital, controlling most of the Australasian economy.
For such a monarchy, especially when Arthur controls the economy and the military, there is no need to worry about the influence of capital on the government.
After all, the huge size of the royal consortium is no joke, if there is capital that wants to influence the government, then we must first see if this capital can withstand the offensive of the royal consortium.
Although the current royal consortium only has the military industry and banks, it is only the royal bank, which can cut off a considerable part of the economic source of capital.
It is important to know that the Australian dollar can be issued jointly by the Crown Bank and the National Bank, and Arthur can control the issuance of the Australian dollar at any time.
In the case of mastering the monetary roots, no matter how large the capital is, it will only be arbitrarily manipulated by Arthur.
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(End of chapter)