Vol 5 Chapter 67: , De-industrialization + real estate

Genius remembers this site address in one second: (Vertex Chinese), the fastest update! No ads!? The tumultuous London conference has come to an end. The clouds of the Great Depression still loom over the world, inflation has exploded, and the world economy has entered recession period.
First, the defeated countries of Italy and Germany. In order to repay their debts, the government chose to increase the money supply. In just a few years, the Deutsche Mark depreciated more than 4,000 times, and the private wealth was looted.
In addition to defeating foreign countries, the life of victorious countries is not easy, and no one should want to be alone.
After the First World War, France adopted a policy of paper currency inflation and the franc depreciated. By 1921, its purchasing power had fallen to 41% of 1914. The price ratio of the pound sterling dropped from 25.02:1 in 1914 to 99.6:1 at the end of 1922.
"Your Majesty, the French government has just announced that it has abandoned the gold standard!" Chancellor Kennedy said cautiously
Ferdinand’s face changed and history changed again. Originally, he thought he would wait until 1926 when French talents would abandon the gold standard!
"Know why?" Ferdinand asked with concern
"Your Majesty, France's domestic economy has deteriorated. Their loose monetary policy has caused severe inflation. Now they can't hold on!
This is our statistical data. It is certain that the economic plight of the French is directly related to the war reparations paid by the defeated countries.
Before the World War, 92% of the industrial products in France were produced locally. Now, 38% of the industrial products used by the French came from Germany, and 5% came from Italy. Six percent came from the Austro-Hungarian Empire! "Kennedy replied while handing in a piece of information to Ferdinand.
Due to the butterfly effect, the French received more war reparations, increased the two industrial countries of Italy and Austria-Hungary, and more cheap industrial products entered the French market in the form of war reparations.
Now France has 49% of the market, which is occupied by industrial products paid by the defeated countries for war indemnities. If we calculate their trade with other European countries, then the French domestic industrial products account for less than half of the market. !
This means that the French industry will suffer a fatal blow, countless factories will be forced to close their doors, the unemployment population has skyrocketed, and the normal order of the domestic economy has been broken!
"So what about other countries? For example, the British Empire, did the same happen?" Ferdinand asked concerned.
"Yes, it's just not as serious as France, as long as the countries that accept the physical debts of the defeated countries have this situation.
According to the analysis of data collected by the Bureau of Statistics, the total industrial volume of the French may have fallen by 23% compared to 1918, and it will continue to fall over time!
The total amount of industry in the UK has also fallen by 18% compared to 1918. However, with the addition of the three North American countries, their total industrial volume has increased dramatically, covering up this problem.
Now the French intend to use currency depreciation to increase the competitiveness of exported goods, in order to save their domestic industry! "Kennedy explained
Ferdinand shook his head helplessly. After the World War, the domestic markets in Germany and Italy were basically abolished. Except for the most basic daily necessities, they could not afford other industrial products, and then this product was not available. All flowed into the international market.
The Austro-Hungarian Empire is not much better, but their pressure on compensation is less, and the overall market shrinkage is inevitable.
Mao Xiong is no exception. After so many years of war, the population has fallen by a quarter, the domestic economy has long been a mess, and the people's spending power has long since disappeared.
Not only the market in the European continent has shrunk, but the market in the American continent has also shrunk. Since the division of the United States, in addition to the development of the arms market, other industries have experienced a decline.
On the one hand, due to the independence of countries, tariffs have naturally appeared, restricting the circulation of American industrial and commercial products. In addition, in this era, American-made products are inferior to Bulgarian knockoffs. Apart from being cheap, they have no international competitiveness at all. .
With poor economic development, the purchasing power of the people naturally declined. After independence, most of the federal states experienced economic recession, and the rate of decline far exceeded that of Europe.
The purchasing power of so many markets has fallen, and global industrial overcapacity is inevitable! It's no wonder that the international media would mock Bulgarian capitalists for not knowing what to do, and actually increasing industrial investment under such circumstances!
"Complete the theory we have prepared for industrialization, and then sell it to the British!" Ferdinand thought for a while and said
"Yes!" Kennedy replied cautiously
"De-industrialization theory" does not mean abandoning industry completely, and it is estimated that no country will completely abandon industrialization in this era!
Rather, it promotes the idea of ​​"limited industrialization", that is, keeping the total amount of domestic industry within a range that can meet the most basic needs of the war years.
It advocates transferring unnecessary industries to colonies where labor is cheaper, or countries that are economically backward, thereby reducing production costs.
Of course, it is not enough to just talk about de-industrialization, and we have to give a suitable reason. Environmental protection need not be discussed. People in this era do not have this awareness.
Isn't London the financial capital? Let the British continue to develop finance!
By the way, I also mention the tourism, service industry, and the upstream development of the industry. For example, let Britain become a manager, or let the world work for the British Empire~EbookFREE.me~ Anyway, they are all fools. It doesn't matter if ordinary people believe it or not, as long as the capitalists find that moving their factories out of the UK can make more profits!
As for the unemployed population, can they develop real estate? This is a good industry that benefits the country and the people.
Where is London? The capital of the British Empire, the financial center of the world!
What are the housing prices in downtown London now? For only 300 pounds, you can buy a house with an area of ​​more than 200 square meters, and the housing prices in the suburbs are even cheaper.
You must know that this is a freehold property right, and the land is sold together!
It is too cheap to sell for three million pounds. I am really sorry for the reputation of the British Empire! Change a house to a battleship, this is the normal opening mode.
It must be fired up, otherwise it will be a trip for nothing. How can such a good opportunity to make a fortune be missed?
It seems that the British have also speculated on real estate. Ferdinand can't remember exactly when, and it doesn't matter if we do it in advance!
When capitalists discover that the huge profits of real estate have passed, it will be difficult to put the brakes on! Even this generation of politicians in London will support them in developing real estate!
As long as the Lloyd-George government doesn't want to get out of it right away, they must solve the domestic unemployment problem. Is there an industry that is easier to stimulate employment than real estate?
This is a conspiracy, as long as the British believe that London housing prices will rise, then housing prices will really rise!
When housing prices rise, capitalists must enter the market. As long as the capital comes in, Ferdinand’s goal will be achieved.
"Carl, find some economic experts to advocate for London's development prospects, and give a proper reminder that London's current house prices are too low, and there is still a lot of room for development!" Ferdinand thought for a while.
"Yes!" Karl replied