69novels Chapter 299
Chapter 299
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“Continue to encourage childbirth and increase the total population!”
The baby boom is actually good for the economy, because raising babies requires consumption, and social consumption will promote economic development.
Of course, having too many babies is also harmful, that is, taking care of children requires a lot of adults’ time, and adults can create value. If their time is occupied, the social wealth they create will decline, which will be very bad for the economy.
Historically, all countries after World War II experienced a baby boom. After the baby boom, a large number of labor forces entered the market, child support began to decline, and the value created by the working population began to rise. As a result, all countries generally ushered in a period of rapid economic development in the 1960s and 1970s. Foot Basin and Hans relied on this period of rapid development to become the world’s second and third largest economies.
So in the long run, the impact of the baby boom on the economy is still more positive.
“Prime Minister, too many babies will take up a lot of parents’ time. Some families even have two or three children. It is too busy for the mother to take care of these children alone. If both parents do not work, their economic situation will be in trouble!”
Economist Ludlin Alster said to Mainz worriedly.
He was worried that the high birth rate would drag down Hans’ economy and impose a huge burden on those families in Hans.
Although there is no old saying in Hans that”If you want to be rich, have fewer children and plant more trees”, they are not fools. If you think about it from an economic perspective, you will know the economic pressure that having children will bring to society and families in the short term.
“Raising a child by oneself and family alone is naturally stressful, so the government should step in to help!”
In response to Ludlin’s concerns, Mainz also gave his own solution
“Government assistance?”
In this era, there are no government methods or measures to encourage childbirth. Countries basically let their citizens’ childbirth go, and few people will intervene in these matters.
So Mainz’s statement is very new to Ludlin. This is the first time he has heard of this idea.
“That’s right, I plan to build 4 new nurseries and 20,000 kindergartens across the country, and assign some staff from the Ministry of Education and the Ministry of Health to specifically manage the care and education of these children.
It is expected that 120 people will enter these positions to specifically take care of these children!”
Mainz’s words shocked Ludlin. 60,000 nurseries and kindergartens, plus 1.2 million management and education personnel, how much money will it cost?
“About 1 billion marks a year!”
Mainz said.
This number once again shocked Ludlin’s three views.
“”Chancellor, may I ask, how much did we spend on military last year?”
The figure of 1 billion marks was so huge that Ludlin thought he was hallucinating. Did the Prime Minister really say that he would invest 1 billion marks in education?
“Last year’s military expenditure? I remember it was 1.5 billion marks, with 500 million in special war appropriations!”
In 1923, the German-Polish War broke out. Although the war did not last long, it consumed a lot of military expenditure. Affected by the war, Hans’ military expenditure exceeded 2 billion marks for the first time last year, becoming the year with the highest military expenditure after the war.
“What, is there a problem?”
Seeing Ludlin’s expression of seeing a ghost, Mainz took a look and asked
“Yes, of course, the problem is big.
Ludlin was so excited that he almost jumped up.”Military expenditure accounts for the largest proportion of fiscal expenditure in various countries. The military expenditure of various countries is generally around 10%. For example, the fiscal revenue of the federal government of California in 1922 was estimated to be around 8 billion US dollars, and the military expenditure that year was 200 million pounds, or about 850 million US dollars, which exceeded 10% of the fiscal revenue.%！
“The British government’s fiscal revenue was about 1.8 billion pounds, and its military expenditure that year reached 250 million pounds, accounting for more than 10% of its fiscal revenue.%！”
“Our fiscal revenue last year was only 8 billion marks, but military expenditure accounted for 2 billion, accounting for as high as 25%. This is already a high figure in itself. The government’s fiscal budget is high. You are investing half of the military expenditure in education at this time. I think you lack an intuitive understanding of our country’s current fiscal situation!”
Ludlin has tried his best to save face for Mainz. If the person sitting in front of him was not Hans, who had a very high prestige in the country and was the designated successor of President Hindenburg, Ludlin would definitely not give him a good look!
Mainz looked at the furious Ludlin calmly, poured him a glass of water, and motioned for him to sit down and talk, and not to be so excited.
“Doctor, I want to ask you a question.
Mainz crossed his hands, rested his elbows on the desk, and said in a calm tone.
“Please speak!”
Ludlin also realized that he had overreacted. After all, Prime Minister Mainz’s starting point was good, but his move was a bit too radical.
“What do you think the government’s fiscal revenue should be used for?”
Uh…
This question was unexpected to Lu Delin, and he couldn’t answer it for a while.
“When a person makes money, he may save it, buy a big house, go on vacation, and enjoy better education and living conditions, but what about the government? Does the government also save money to buy houses and go on vacation?”
Obviously, this is impossible.
Ludlin shook his head:”Of course not, the government’s fiscal revenue must be invested in national defense, people’s livelihood and social security, as well as maintaining the operation of the country!”
Mainz nodded,���Delin is right.
“Social and economic development generally goes through four stages. I think you should know which four stages they are, right?”
This involves Ludlin’s expertise, and he answered naturally:”Prosperity, recession, depression and recovery, a total of four stages, going back and forth!”
Mainz nodded. Economic crises in Western capitalist countries generally occur every ten years, and within these ten years, they will repeat these four stages.
“The key to social development and progress is productivity.
Only the improvement of productivity can promote the long-term development of the economy.
However, the improvement of productivity is limited and will be restricted by multiple factors, including the level of science and technology, social culture, means of production and the number of workers.
If these things are expanded, they will take days and nights to talk about.
But in the final analysis, one thing is very clear: the development of productivity is the decisive force for social progress!
”
Ludlin frowned. He seemed to have seen this sentence in Max’s economic works.
Isn’t Prime Minister Mainz a Junker aristocrat and a capitalist?
Why is he interested in Max’s stuff?
“Since you agree with this, you should understand that the rational use of the government’s fiscal and monetary policies and increasing the supply of money can effectively regulate and accelerate economic development and bring prosperity ahead of time.”
Ludlin was about to start refuting, but Mainz waved his hand to stop him from speaking.
“I know you will say that such prosperity is built on bubbles, and once the bubble bursts, we will experience a more serious recession and depression, right?”
Ludlin’s expression became serious. Mainz did guess his thoughts, which forced him to face the young man in front of him.
He originally thought that Mainz was a soldier and should not have much research on economics, but the facts slapped him in the face. Mainz’s understanding and knowledge of economics is probably no less than his!
“I don’t deny that there is a bubble, but I don’t care about it. As long as the development of productivity can keep up with the speed of economic development, then this growth curve will be caught up by productivity sooner or later. What we need to do is to speed up the development of productivity as much as possible. The most effective way is to increase the number of workers and improve production technology.”
Ludlin understood what Mainz meant by this time: encouraging childbirth means increasing the labor force, and increasing education spending means promoting scientific and technological development and improving production technology. These two policies will form positive feedback on the development of productivity, and then promote economic development.
“Prime Minister, I understand!”
Ludlin finally admitted defeat. He had to admit that Mainz’s understanding of the economy was far beyond his own.
Mainz smiled slightly. Ludlin only saw the surface, not the inside.
Mainz’s real intention would never be told to these people!_Feilu reminds you: Three things to do when reading-