Daming: Old Zhu, we agreed not to rush!

Chapter 37 Opening the Sea?Furious old Zhu!

An invisible hand regulating the market?
Supply and demand is a way?
Zhu Biao is more likely to allow himself to understand what Su Jing said, even if he can't fully understand it, he still tries to memorize it by rote.

This made Zhu Yuanzhang next door have a big head.

He can't understand.

One is that I haven’t listened to the previous class, and the other is that there is a wall, so the sound is not so clear.

This annoyed Zhu Yuanzhang.

I don't even understand what Su Jing said!
Su Jing didn't know this, but continued: "Whether it is the invisible hand or market regulation, it has its own natural disadvantages."

"Niu Yi, do you know what's going on?"

Su Jing's teaching has never been self-talk, he is guiding Zhu Biao.

Flaws in market regulation?
Zhu Biao recalled the work he had done these days, the documents and accounts he had read, and so on.

After thinking for a while, he replied: "The market adjustment will be a step slower."

"Master Su said before that the second wave of potato seedlings will be too late, because there will be a lot of seedlings by then."

"And these people grow potatoes because they have learned that the potato market is popular at this time. When potatoes are planted, the potato market will also change."

Su Jing immediately praised: "Very good! Niu Yi, you are very good at thinking and summarizing!"

"This is indeed one of the disadvantages of market regulation, hysteresis."

"Decisions that seem reasonable to businessmen at the moment may have lagged behind at the macro level."

"Market adjustment is a kind of post-event adjustment. The relationship between supply and demand changes, the price changes again, and the production of commodities is adjusted. This process takes time."

"However, the disadvantages of market regulation are not limited to this. If you observe carefully, you will find that when there is a best-selling product in the market, the producers engaged in the production of the product will desperately produce, or the merchants will desperately hoard."

"This is one of the other drawbacks of market regulation, blindness."

"Most individual producers and operators cannot make accurate judgments on the market prospects at the macro level, and can only make judgments from what they see, so they are extremely blind."

"Finally, there is another drawback, which is spontaneity"

"Businessmen seek profit. Wherever there is interest, they will swarm there, and resources will be gathered, resulting in unreasonable distribution."

Su Jing said a lot in one breath, stopped and took a sip of tea.

Zhu Biao repeated to himself: "lag, blindness, and spontaneity."

Zhu Yuanzhang next door is out of his mind, what is Su Jing talking about?
If you don't understand a little bit, that's okay.

But all understood, certainly not.

Zhu Yuanzhang, who was half-understood and tortured, was very uncomfortable.

The point is that I really don't know this thing, what's the use of knowing it?
"Master Su, do you mean that the market can't just rely on itself to regulate because of the disadvantages of market regulation?"

Zhu Biao raised his head and asked.

Su Jing took a look at Zhu Biao, he, his apprentice, had an extraordinary level of thinking.

"It should be added a premise that market regulation alone is not enough for the healthy development of the market economy."

Su Jing replied.

Zhu Biao asked again: "Then what else do we need to do?"

"Simple, let the visible hands do what the invisible hands cannot do."

Su Jing said with a smile: "The adjustment of the market itself is not easy to use, so use external force to adjust it. The court should do something."

Zhu Biao was taken aback for a moment, and suddenly realized: "Master Su is right, this is my Ming Dynasty's country, and the market itself is also subject to Daming's supervision, so naturally it can be actively adjusted."

"But, what should the court do?"

Zhu Biao found that whenever he seemed to realize something, new problems appeared.

And Su Jing seemed to be able to answer anything.

Simply divine!
Zhu Yuanzhang, who was separated by a wall, did not have Zhu Biao's ideas.

It's all because he doesn't like businessmen, he only thinks that business is a small way and doesn't produce anything.

Farmers are the foundation, and land and food are more important.

"Don't worry, you have to eat one bite at a time."

Su Jing said indifferently: "After understanding the three major disadvantages of market regulation, it is not finished. You also need to know the natural defects of pure market regulation, so that you can prescribe the right medicine."

"In addition to disadvantages, does market regulation have natural defects?"

Zhu Biao was a little puzzled and didn't quite understand.

Su Jing said: "Of course, the three major disadvantages of spontaneity, blindness, and lag mentioned just now are actually the disadvantages of self-employed people in market regulation, that is, businessmen."

"And pure market regulation itself also has flaws."

"The simplest and most direct thing is that it is difficult to achieve the overall balance of the entire Ming Dynasty's national economy."

"Businessmen have limited access to information, and they often have deviations in their views on the future market. Their decision-making is blind. When many businessmen have deviations, they will produce blindly, resulting in excess or shortage of goods. .”

"And when this contradiction reaches a certain level, it will cause economic fluctuations, the wealth of the entire society will be wasted, and productivity will also regress."

As Zhu Biao listened, he had new doubts:

"Master Su, the Ming Dynasty relied on farmers to survive. The balance of the total economy you mentioned seems meaningless. For farmers, farming is the only choice."

"Businessmen are just buying and selling goods, and Daming's wealth has been snatched by them."

In today's Ming Dynasty, commerce is not well developed.

At the same time, the feudal society was based on farmers, and food was not only food, but also played the role of currency.

The entire economic structure is relatively simple, and the defects of market regulation are not so obvious.

At the same time, Zhu Biao has a father who looks down on business, and under the influence of his ears and eyes, he also came to such a conclusion.

"Well said, Biaoer."

Zhu Yuanzhang couldn't help saying hello to his son when he heard this.

This is my son, Su Jing, how should you answer?
Su Jing was not surprised by Zhu Biao's doubts. In terms of the productivity of contemporary agricultural society, there is not enough food, so how can we talk about producing other things.

Su Jing didn't understand Zhu Yuanzhang's emphasis on agriculture and restraint on business.

This is the characteristic of the self-sufficient small-scale peasant economy in feudal society.

In the final analysis, it is still a question of productivity.

But Su Jing also knew that the Ming and Qing Dynasties were an important period for the development of the handicraft industry.

Anyway, I am just teaching knowledge, so if you are ahead, you will be ahead.

"Niu Yi, you are right, but have you ever thought about why Daming must only conduct business activities within its own territory?"

Su Jing asked back.

Zhu Biao was stunned, while Su Jing continued: "For example, Zhang Qian in the Western Han Dynasty opened up the Silk Road, and then had trade relations with the Western Regions."

"Our silk can be sold to people from the Western Regions at a price that is several times higher, and then we can buy local products that are cheap and large in quantity from merchants in the Western Regions and bring them back."

"Isn't this an increase in wealth?"

"Of course, the remnants of the Northern Yuan Dynasty are still there, and the Silk Road is impassable, but there are also extensive overseas trade markets. If we can open up the sea, it will definitely bring huge income to Daming!"

Hearing Kai Hai, Zhu Biao's face changed suddenly.

And Zhu Yuanzhang next door was already furious!

(End of this chapter)