Chapter 288： Transfer crisis (1/2)
After the outbreak of the economic crisis, the mines laid by Franz exploded, and the endless projects in various places were endless, and the Vienna government was cleaning up the mess.
There is no way, the economic crisis is too destructive. As the first global economic crisis, this crisis can be more serious than previous economic crises.
In 1857 alone, there were more than 5,000 bankrupt companies in the United States. The stock market was directly cut. In some industries with severe overcapacity, stock prices plummeted by 90%.
European countries are not much better, except that the economic crisis has spread a little later, and governments of various countries have time to respond.
It is a pity that in this era there is no government intervention in the economy. Everyone is waiting for the crisis to erupt and the losses are inevitable.
Affected by the economic crisis, many capitalists have broken their capital chains. There is no money in the pocket, even if you are not willing anymore, you can only cut the meat.
The initial investment was considered charity, and the performance bond was directly floated.
The end of government projects is only a minor problem. Anyway, these projects are not a brow, and construction in the evening will not be life-threatening.
Moreover, powerful capitalists insisted on clenching their teeth. The more you invest, the more you are reluctant to give up. These projects are still high-quality projects.
This persistence is crucial to the turbulent Austrian economy. Many companies in the relevant industrial chains have survived directly, and the continuous deterioration of the economy has been avoided.
Prime Minister Felix Shensheng said, ”Your Majesty, so far, there have been 1,800 domestic bankruptcy applications and 2,000 companies on the verge of bankruptcy, including the five largest railway companies.
The stock market directly fell by 42%, of which railway stocks fell the most. Under the influence of the US railway bubble, many investors lost confidence in railways, and their market value evaporated by 72%.
The textile industry, manufacturing industry, financial industry, and steel industry all suffered heavy losses. Affected by the economic crisis, even the export of agricultural products shrank by a quarter.
The industrial output value has dropped by nearly 30% compared with the same period last year, and it is still in a state of continuous decline.
The number of unemployed people in the country has reached more than 980,000, and it is a matter of time before more than one million. If the economic situation does not improve, this situation will continue to worsen. ”
The impact of the economic crisis in all walks of life, large-scale bankruptcy of companies, Franz did not care at all, these are expected.
How can a wild-type economic development model be free from sequelae? If it weren't for the cause of the Near East War, Austria would have captured the British and French markets in the Russian Empire, and the economic crisis would have erupted.
The crisis in Austria began to emerge during the postwar economic transformation.
If it were not for measures such as the opening of overseas colonies, the reform of the gold standard, the influx of colony gold, and the government's efforts to increase infrastructure, the economic crisis would not start in the United States, but in Austria.
Other problems can be taken slowly. The only problem of unemployment is imminent, and it must be resolved immediately, otherwise it will cause very serious social problems.
Franz thought for a while and said, ”According to the original plan, the government took over the bad construction project and let the workers resume work.
At the same time, the government interviewed the railway companies that had stopped working. Either they tried to solve the funding problem and resume construction immediately; or they accepted the government's investment and shares, and in short, they must resume construction as soon as possible.
The colonial ministry must act as soon as possible. The economic crisis is the best opportunity to organize immigration. Not only Austria, but the entire German region is your scope of work.
If you want to find a way to encourage bankrupt people to emigrate to the colony, Americans are also in the economic crisis at this time, and no one is robbing you of immigration.
I ordered the colonial government to speed up its expansion into Nigeria and the Congo, and I authorized them to organize civilian armed forces to participate in the fighting and expand our sphere of influence as soon as possible. ”
As long as these projects resume normal construction, the relevant upstream and downstream enterprises will survive, and most of the domestic unemployment problem will be resolved.
In this era, the industry is actually relatively single. The peripheral industries of these projects already include most of the industry in the country.
Franz swallowed the bad infrastructure construction projects because those projects could not find a taker and could only be taken over by the government to continue construction.
No one eats the railway company. In addition to the high market value of the railway company and the cost of acquisition, the more important reason is that the railway company is trading at a loss.