Chapter 609： Resource trap (2/2)

From the overall perspective, we must make choices in these areas, and focus on developing areas that are easier to develop.

The widening gap between urban and rural areas is a worldwide problem. With the development of industrial technology, the gap between industrial and agricultural scissors will become more serious.

In the short term, the most effective way is to promote land mergers and adopt a large farm production model to replace the smallholder economy in many areas now.

However, this is again the least desirable approach. The social problems caused by land mergers are far more serious than the widening gap between urban and rural areas.

In fact, these two issues are not critical. The most important thing is that the gap between the rich and the poor is widening, and the number of poor people is increasing.

As long as the income problem of the people at the bottom is solved, it is acceptable whether the regional development is uneven and the gap between urban and rural areas is widening. ”

This is a pseudo-proposition. How to mediate the gap between the rich and the poor without addressing regional imbalances and the gap between urban and rural areas?

The three have always complemented each other, and their income is different from the others. This is regulated by the market, and the government cannot impose control.

Franz is no longer economically innocent, and will not be naive to think that the government will set a higher minimum wage income, and everyone's income will go up.

This is impossible. Every industry can bear different labor costs. The market competitiveness of some traditional industries is cheap labor.

In so many countries in the later generations, they would de-industrialize. In addition to the notional excuse of ”environmental protection”, more labor costs in developed countries are too high.

In other words, the guild has become a tool for some people to make profits. In order to chase a higher return on investment, capitalists have to transfer factories.

Austria has not progressed to that point. Many capitalists are still lying down and making money, and most industries have good profits.

The bottom line is that the income of the people at the bottom is not up, and the main reason is the supply-demand relationship in the labor market. The so-called labor cost affects market competitiveness, which is actually very nonsense.

The current labor price, labor cost actually accounts for a very low proportion. Except for labor-intensive industries, labor costs in many industries are less than one-tenth of product prices.

Compared with the rival British, Austria's labor costs are much cheaper, and the cost of raw materials is also much cheaper. However, the international retail price of products is almost the same.

This made Franz very dissatisfied. With so many superior conditions, the capitalists did not even grab the market with the British. Obviously, the domestic market has fed them, and everyone's initiative is not enough.

If they are not changed to give them a sense of crisis and continue for so long, it is estimated that Austria will also fall into the ”resource trap”.

This is the case of British and French capitalists in spacetime. Anyway, they can make money anyway, why should they work hard?

One by one with money and eating, drinking, and having fun, there is no sense of crisis at all, and finally I watched Americans and Germans surpass the past.

It is the core of this economic conference to change the status quo of domestic capitalists' unmotivated progress.

Franz: ”Solving the gap between the rich and the poor is indeed the core issue. What plans does the government have?”

Prime Minister Felix: ”In the short term, the easiest way to raise everyone's income is immigration. There is a surplus of domestic labor, but the colonial labor has been very scarce.

We have also been immigrating these years, but we haven't done enough. In the inland regions, we rarely even do propaganda, and we must change this situation now.

The government plans to move 10 million immigrants to the colonies within five years. The main areas of immigration this time were overpopulated rural areas and poor and remote areas. ”

It is poor to see that a large number of immigrants enter the colonies, and the supply-demand relationship in the domestic labor market will inevitably change. Gone are the days when capitalists depended on cheap labor.

It wasn't Franz who was ruthless and was forced by reality.

The former German Empire was the best example. Almost all resources except coal and iron were scarce, labor costs were higher than the French, and there were not so many colonies to plunder, but they developed.

The talent bonus of compulsory education is one aspect, but more of it is the crisis awareness of the enterprise, which urges everyone to promote technological innovation.

It has been so many years for compulsory education in Austria, the quality of the population is not low, and it has a richer market and resources, which cannot be justified.

The second industrial revolution began in Austria. It is reasonable that Franz promoted the new technology. It should be faster than the same period in history, but the reality is very shameful.

In 1875, the newly registered patented technology in Austria, the royal industry accounted for one-third, the proportion of this number has increased year by year.

Franz's research found that the core problem was that the company's life was too easy. You can make money by lying down, and capitalists are simply unwilling to promote technological innovation.

This is determined by benefits. Low labor, raw material prices, and broad markets allow them to make money without hard work.

However, the research and development of new technologies is full of uncertainty. The investment and return may not be directly proportional, and everyone is unwilling to take risks.

Without pressure, it can only create pressure. These years have not yet reached the age of capital internationalization, and Franz is not afraid of capitalists running away.

Engaging in international trade requires government endorsement, and every large multinational group has a government background. Even so, these groups are often pitted.

There are many classic cases of this, for example: British and French capital invested in Austrian railways and infrastructure construction, and Franz used the economic crisis to pit it.

Another example: British capital built a large railway in the United States, and ultimately lost everything.

There are background pits, which are pits within the regular range. No background, not to mention, no need to pay attention to eating.

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