Vol 4 Chapter 46: Distribution of wealth

Constantine continued: "Your Majesty, this is the Ministry of Transport's plan for the Greek peninsula. In order to integrate the Greek peninsula with our homeland as soon as possible, the Ministry of Transport plans to build a railway from Ioannina to Athens.
Including the seven branch lines, the total length of the railway is about 2,300 kilometers. The planned investment is 80 million levs. The estimated construction time is 5 years! "
Jeff Ferdinand nodded and agreed, linking the railway network on the Greek peninsula and strengthening control over the Greek peninsula. This is one of Bulgaria's established national policies.
Uh ...
Well, Ferdinand has only left for more than two months and has left such a big mess. It can only be said that the king is not a good person!
If Ferdinand didn't ask too much, maybe many things would be directly classified by the bureaucrats below. This is also a common problem among bureaucrats all over the world.
Although Bulgaria's current level of morality has reached a very high level, Ferdinand has never believed in the bureaucracy under his hands.
Perhaps they will not make a big mistake, but it will be difficult to say if they will be passively idle. After all, the Bulgarian government has a lot of things!
Too many of them have no time to engage in political struggle! They are also human. How could they give up if they had the chance to be lazy?
As for giving them a holiday? Ferdinand said: This is impossible! In this era, there is no popular saying of annual leave. The whole of Bulgaria is a single rest system. Is there no exception for his king?
And it's not the busiest time yet. When the World War breaks out, that one will be really busy!
Those who have experienced the first Balkan war know that in order to win the Ottoman Empire, Bulgaria has invested all its power, and many government officials have not entered the home once in months!
Well, except for special circumstances, how busy are government officials under normal circumstances?
Holding a higher income, except for ten hours of work a day, in principle, no overtime!
Alas, the Bulgarian government is now reforming and is preparing to work eight hours a day, but Ferdinand has never agreed!
This is a problem that affects the whole body. If the government changes the working hours, should other industries and industries also change their systems?
Do not suffer from widowed and uneven! It is universal in the whole world, and no one in Bulgaria has questioned the ten-hour work system and single rest system. The most important thing is that everyone including Ferdinand has implemented this set of standards!
Of course, this is what Ferdinand thinks! His working hours are freely arranged. If there is no important thing, there is nothing for him!
The cabinet government is not eating rice. It is enough to often find Ferdinand to make a resolution with a bunch of questions. If even trivial matters can't be dealt with, Ferdinand will already be replaced!
The most important thing is that the productivity of this era is limited. If the working hours are forcibly reduced, the capitalists will also have to reduce their wages.
In order to keep your income, you still have to work overtime obediently, so tossing is not tantamount to working in vain?
Don't mention any work efficiency. All of them are nonsense. Ferdinand has been in the 21st century. Isn't there still so many people working overtime?
资本 Are capitalists all fools? I don't know if working too long will reduce production efficiency and increase the rate of defective products?
Why are so many people working overtime?
The reason is very simple. Except for individual precision industries, for most factories, slightly flawed products are completely acceptable!
年代 Not to mention this era. Capitalists dared to let workers work 15 or 6 hours a day. That was a combination of factors and considerations. This was done for the sake of maximizing benefits!
What if forcibly reducing working hours without reducing wages?
It's even worse, prepare to face the economic crisis directly!
Productivity in this era is limited. If a worker works for ten hours and the value of the product is 100 leva, the cost of raw materials, machinery, and factory building is 45 leva, the government tax is 10 leva, and the sales channel is 20 l Eph, the capitalist took 10 levs, the management cost was 5 levs, and the worker's salary was 10 levs.
If the working hours now become eight hours, then the value of the product produced will be only 80 levs. The cost of raw materials, plant and machinery may be 38 levs. The government tax will also be reduced to 8 levs. The cost of sales channels may be It is 16 leva, the management cost is unchanged at 5 leva, and the worker's salary is unchanged at 10 leva, so only 3 leva is left to the capitalists.
(Production capacity is reduced and the amortization of plant machinery costs will inevitably increase! The more the product of the market, the lower the unit cost!)
Obviously, this is unacceptable. It is unlikely that all 10% of the capitalists will be profits. Most people will invest part of their own money and then use bank loans to expand production capacity!
Now the interest rate of bank funds in Bulgaria is more than 5%. If the capitalists have a 10% profit, they will still earn after removing the interest on the funds!
If this profit is reduced to 3% or even lower, there is no doubt that the enterprise will definitely not survive!
The capital cost of Yeguang may not be recovered, let alone expand the production capacity! Is it impossible for all capitalists to invest in full?
Even if there is so much money, no one will do that!
For example, the total investment of this project is 1 million levs ~ EbookFREE.me ~ You invested 30% of the funds 300,000 levs, and borrowed 700,000 levs from the bank at an annual interest rate of 5%.
The profit is calculated based on 10% of the total investment. The annual profit is 100,000 levs, the loan is repaid 35,000 levs, the net profit is 65,000 levs, and the return on capital is 21.7%.
This number can also stimulate the enthusiasm of the capitalists for production. If they are allowed to invest 1 million levs in full, the return on capital will be only 6.5%. What is the return on investment for expanding production?
As for the rise in production costs, can it increase the sales price? Obviously, this consequence is even more serious. Now international trade has accounted for 20% of Bulgaria's industrial production. If the price increases are still competitive?
If the product price is lost and the international market is lost, it will also cause domestic inflation and cause a chain reaction!
As long as you think about the terrible consequences, Ferdinand is afraid to act lightly!
Either the productivity has reached a certain level, or Bulgaria has enough colonial markets to plunder, otherwise it is better not to mess around!
初 At the beginning of the 20th century, the wealth created by the whole society was limited. No matter how it was distributed, it was impossible to achieve high welfare. Ferdinand would not violate market rules!
Uh ...

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