Chapter 668： War without smoke (1/2)

1879 was a turning year for the whole world. Both politics and economy were affected by the Prussian war.

Affected by the tense situation in Europe, both France and Austria stared hard at the European continent and did not go out to do anything. The British only stepped in South America, and their main energy was also focused on the European continent.

None of the three big hooligans is doing anything, let alone other countries.

These days, the political sensitivities of the colonial empires are very high. The situation in the European continent is tense and not focused on the mainland. What if the situation gets out of control?

The colonial empire didn't do anything. It is undoubtedly good news for those independent nations that are not ready to fall asleep. They can finally live a few days comfortably.

The Russian-Prussian War started, and even the conflicts between Britain, France, and Austria were suppressed. For the common good, the three major powers stood together early.

Of course, this alliance of interests is not reliable. Once major changes occur in the international situation or the power of the three countries is unbalanced, this alliance may collapse at any time.

If the impact of the Prussian-Russian war on the international situation is more after the war, then the impact on the world economy will be immediate.

There are many affected industries, affecting almost every field, among which agriculture, manufacturing, finance, and service industries enjoy the largest dividends.

In the capitalist economic world, a new round of prosperity has begun. The most typical example is the disappearance of the agricultural crisis, the excess production capacity no longer exists, and the booming economy has directly promoted the development of the financial and service industries.

Although the war has just begun, the biggest dividends brought by the war have not yet fully erupted, but the capitalists are full of confidence.

A lot of hot money has poured into the market, and the economic environment suddenly improved. Job advertisements can be seen in the streets and alleys. In war-related areas, workers' wages have all risen slightly.

According to statistics, Austria ’s new investment in November alone amounted to 160 million Aegis, an increase of 76.44% over the same period last year.

Most of this capital has flowed into the manufacturing industry, and factories have risen up. Obviously, investors are very optimistic about this opportunity.

Not only Austria, but the entire European continent. Capital is like crazy, constantly pouring into all walks of life, wanting to take a share in the Pu-Russian war.

Looking at the statistical data, Franz frowned, ”The market is too hot now, and although the consumption of war is large, there are some wallets in the two countries.

Neither Britain, France, nor us will provide them with unlimited funding. Before long, a new round of overcapacity will erupt, and the European economy may be lamenting after the war. ”

The Minister of Economic Affairs Reinhard Haldergen explained: ”Your Majesty, this is an inevitable law of economic development. In the previous wars, many people have made a fortune, they have been blinded by their interests and ignored. Risk exists.

This is true not only domestically, but throughout the European world. According to estimates by economic experts, in the past two months, new European investment has increased by at least 50% compared to the same period last year.

Overcapacity after the war will become a common problem for European countries. This is a huge trouble, but also a huge opportunity.

As long as we seize this opportunity, we can take the opportunity to crush the French manufacturing industry and weaken this biggest competitor. ”

There is no anti-dumping argument these days, and free trade is the mainstream of the times. The French still did not resist the pressure and joined the free trade system six months ago.

The core of ”free trade” is that the government lifts restrictions and impediments to import and export trade, cancels various privileges and preferences for domestic import and export goods, enables goods to be imported and exported freely, and competes freely in domestic and foreign markets.

On the surface, it is good for everyone. It can have a global market at the same time, clearing the obstacles to the circulation of goods.

In fact, there is a gap between enterprises and enterprises, and between countries, and this gap is directly reflected in market competitiveness.

There is no doubt that France, which lacks resources, is at a disadvantage in this round of competition. The import of raw materials directly raises production costs.

In order to cut costs, capitalists naturally want to lower the wages of workers, and the influx of cheap labor in Italy has created favorable conditions for lowering wages.

In the last ten years, per capita wages in Europe have increased by 23.8%, while per capita wages in Greater France have increased by only 5.4%.

In this context, the conflict between French and Italian people is naturally endless, even if the Paris government tried to suppress it, it still had little effect.

It is regrettable that even if labor wages are reduced, the international competitiveness of most French industrial and commercial products is still not high.

No way, who makes labor costs cheap these days? Except for labor-intensive industries, the labor cost of most industrial and commercial products is less than one fifth of the total cost, or even less.

Occupying the bulk of production costs is the industrial raw materials. Without solving the problems at the source, how to improve market competitiveness?

The market as a whole, while reducing labor costs, has also weakened the market's purchasing power.

Although Greater France has a population of 60 million, the market consumption power cannot keep up with the John Cow, which has only over 30 million people.

The market's consumption power is not working, and it is fed back to industrial production, forcing companies to produce cheaper goods. This is a vicious economic cycle.

Taking coal as an example, the French industrial coal cost is 1.3 times that of Austria, and in some inland areas it is even more than 2 times.