Chapter 519: Storm (2/2)
As the cost of grain production varies from place to place, it cannot be generalized. In the plains of Wallachia with better natural conditions, there are even small profits. And some provinces with poor natural conditions will probably lose money.
The bankruptcy of peasants will definitely happen. With the development of the times, the small peasant economy will inevitably be destroyed. This original production model is too expensive to compete with mechanized farms.
The per capita land area of farmers in China is relatively high. Usually, when people plant, they all use multiple crops in parallel and have a certain ability to resist risks. Large-scale farmer bankruptcy will not erupt in Austria.
To complete this plan, the funds required are still relatively large, at least 120 million Aegis, and at the same time, about 21 million Aegis will be reduced financially every year, and the government will need to fill 15 million Aegis holes in education. ”
In the end, the problem is still a word of money. Once this plan is launched, the era of relying on agriculture to make up for industry and education is over.
In fact, Austria's agricultural tax has always been very low, as long as it is 5%, it is the lowest level among the major agricultural producers in continental Europe.
The grain export tariff is as high as 15%, but the finished product grain export tariff is only 3% to 5%. It is adjusted according to the actual situation, and at the lowest level, it has also been levied 1%.
Affected by this policy, Austria basically exports refined processed grains, and rarely exports directly.
Other related taxes are also very low. Grain transaction tax is 5%. Vehicle and vessel transportation tax is exempted. There are almost no additional taxes.
Even so, these taxes account for a significant portion of Austria's fiscal revenue, which has declined in recent years and is still a significant number.
Franz was caught in the calculation, and it was easy to invest 120 million SHIELD operating funds. One-time investment crowded it. It is really impossible. You can also use bank loans or issue bonds. This money is already difficult. Austria.
The trouble is that fiscal revenue has decreased and education expenditure has increased. This 36 million Aegis is not a one-time loss, but it will be lost forever.
”Temporary exemption” is actually permanent for the time being. After the dividend period in agriculture is over, it is time for the industry to subsidize agriculture.
This means that Austria's fiscal revenue has shrunk by 8.3% and fiscal expenditure has increased by 6.1%.
After listening to the plan of the Ministry of Finance, the Minister of Finance Carl frowned, and after a moment of silence, put down the drinking glass in his hand.
”It's too radical. To break down the agricultural production systems of European countries, it is not necessary to be so extreme. It is enough to hit international food prices to the point where farmers in various countries are not profitable. There is no need to have one step at all.
In the field of agricultural production, we have the advantage, and the cost of food production is the lowest in continental Europe. We also have a complete industrial supporting system, which can get more profits.
Farmers in various European countries have started to lose money. In fact, domestic farmers still have a certain profit. As long as we drag on, they will not be able to support it.
Inferring from economics, the Russians are likely to be the first to fail. Unless the Tsarist government pays to subsidize agriculture, otherwise the high cost will make Russia's agricultural products lose market competitiveness.
As long as we grasp this degree, we do not need to pay too much at all. Now it is only necessary to reduce grain export tariffs and exempt agricultural taxes, and it can withstand the first wave of shocks.
The Russians' grain has not been exported to the United Kingdom. Now let's release our reserve grain first, hit the international market and hit the price to the British and Russian transaction prices, and then see if the British will fulfill their contracts.
If the contract is not fulfilled, the Russians will be in bad shape. I do n’t know if the wallet of the Tsarist government will be able to bear it, and the pile of grain cannot be sold. The consequences are very serious. ”
It is hard enough to have professionals. This is not the price of food, but the finances of the Tsarist government. Once large-scale slow-moving grains appear, Alexander II will be out of luck.
There is no way, there will be food left in the hands of farmers. Either the government collects the grain directly and then rots it in the warehouse;
Once the market is full, no matter how cheap it is, no one dares to take over. Every time an economy breaks out, capitalists pour milk into the river just to avoid price collapse.
Now Carl's plan is to crush British food prices one step before the British-Russian deal is completed.
International food prices are naturally not immune, and Austria will suffer heavy losses. But as long as the British default, then the Russians who have suffered heavy losses will certainly not give up. Maybe there is nothing to do with the London government, but to withdraw from the pound-the gold system is inevitable.
At that time, even if the tsarist government is no longer willing, it can only join the Aegis, the gold system, with a scrutiny. Losses in the grain market can be recovered in the financial market.
Hols frowned, questioning: ”What if the British fulfilled the contract? The benefits of currency hegemony are not a little bit, and they have no reason to give up.”
Carl smiled calmly: ”That's all that all grain exporting countries have had a hard time this year. Even if the international grain price hits a 30% discount, the Austrian impact on exporting processed grains is not so great.
Don't forget, the food finishing industry itself still has a dozen points of profit, and these companies can also share some of the losses.
In general, the price of raw grains has fallen by 70%, and domestic agricultural production can still maintain its capital. This is enough. I don't think that at the current price of grain exports, Russian farmers can make money.
The price that the government needs to pay is only a part of the reserve grain and the reduction of fiscal revenue by 8-10 million Aegis.
If it directly impacts the agricultural systems of European countries, the Russians can only be fooled by ordinary people, and politicians will still be clear.
If they take countermeasures and artificially increase grain import tariffs, what can cheap grains do in addition to increasing their fiscal revenue? ”
This is a reality, and it's common to flip the table in front of interests. In order to protect domestic agriculture, it is normal to adopt trade barriers.
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