The Great Industrial Ming Dynasty Started from Beiping

Chapter 167 The Magic Pattern

It's not shameful to talk about the economy in front of the boss, Zhu Di is used to it, and since the boss said this, he asked.

"As you said, the upper limit of land is limited, and there is only so much food, and food is inseparable from the people. If there is less food, people will starve to death."

"No matter how much money you have, if you can't buy food, what's the use of it?"

Zhu Gaochi smiled, this is the difference in the understanding of economic theory, the economic theory of traditional agricultural society, and the economic theory of industrial society.

This kind of idea still exists in later generations. For example, concentrating the population on the land in order to expand food production is a relatively simple idea, and it also violates the industrial theory.

Including mistakes that some economists also make.

It is used to accuse backward countries of low-quality labor force and wrong production methods to explain their backwardness and inability to realize industrialization.

They even suggested that money should be used to run schools first, which completely confuses cause and effect.

I also made the mistake of old experience cognition, and the idea of ​​concentrating the population on the land is the same interest.

"A society dominated by agriculture, because of the lack of a market, thinks that the population should be concentrated on the land, hoping to solve the problem of excess manpower."

"So even if there is a new technology, because there is no huge market, sufficient purchasing power, and commercial transportation channels, the original supply bottleneck, etc., merchants dare not rush to invest."

"As the father said, there is an upper limit for food, but the market has not been developed, and the industry cannot be developed."

Zhu Gaochi did not underestimate this problem.

This problem cannot be solved in many countries in later generations, and many countries are still in the production mode before the industrial revolution.

It seems that there are more factories, and some modern commodities, cement roads, high-rise cars, but in fact the production mode is still the traditional mode.

The United Kingdom has unique conditions, and naturally developed the first industrial revolution, and even Renaissance Italy has to learn from Britain.

Western countries have gradually succeeded in learning the production model from the failure of learning technology, and it is not so easy for other countries to learn in later generations.

The success of the Chinese model shocked the world.

The country's experience also allows Zhu Gaochi to stand on the shoulders of giants.

"Our Daming is invincible inside and outside, the country is peaceful, and we have the conditions to develop industries, and under the control of my Yan Palace, Beiping Province can create a market without a market."

"What's more, I have a certain foundation in Ming Dynasty, so the difficulty is even lower." Zhu Gaochi looked confident.

Those countries that fail to create a politically stable, unified large market that can support large-scale production methods can only permanently stay at a self-sufficient small-scale peasant economy and Malthusian equilibrium.

No matter how the United Nations, the IMF, the World Bank and other countries provide assistance and provide fund support, no matter how they engage in the "Global Times" and the "Arab Spring", these countries will not be able to achieve industrialization.

"Industry increases people's income and increases people's income, but the food people eat has not changed. The stomach is still the same and cannot hold more food, so the money used to buy food is still the same."

"If so much extra money is kept at home and deposited in the cellar like a local rich man, it will be nothing but scrap copper and rotten silver."

"And the developed industry can provide abundant and cheap commodities, stimulating people to spend money to buy industrial products."

"For example, new coal stoves, briquettes, railways, fertilizers, black coal, etc."

"And food has a shelf life and cannot be stored forever. People will not use all their excess income to buy food that cannot be stored forever."

"So the old impression in my father's mind that people will use money to buy food is actually a wrong concept."

Zhu Gaochi said with certainty.

Only a small part of the family income of future generations is used to buy food, and most of it is used for consumption. If all income is equal to food according to the traditional thinking, it will not be able to provide so much food.

And people will not buy so much food, because it will be wasted and there will be more to eat.

You can get a very clear difference by comparing before and after 50 years.

Under the country's new distribution model, a market has been created, allowing technologies that are more efficient and require less labor to be promoted.

Not only did it not lead to the birth of a large number of people who lost their original jobs, as people feared, and the economy fell into recession, but instead formed a virtuous economic cycle.

In the era of reform and opening up.

A farmer who still guards the traditional field, his income is still only enough to fill his stomach, and he leaves the field to join the industry, changing from a farmer to a worker.

The income of the workers can not only fill their stomachs, but the surplus income can buy other industrial commodities.

From then on, farmers envied workers, and rural people envied city people.

But the city dwellers ate as much as the peasants, and the difference was that the workers bought the rest of the industrial goods with their wages.

In other words, it is the exchange of industrial commodity value and industrial commodity value.

Creating a method that can support large-scale production, this sentence is placed at the forefront, is also the core of the failure of many stable countries, and even the economic regression of many countries.

So it’s not that there are factories that are successful. Those stable countries that have acquired technology and established factories have not been as successful as China. The difference is here.

This change is called the Chinese model by the world.

It is unbelievable for an agricultural country to directly evolve into an industrial country through the efforts of a generation under the environment of the outside world.

After hearing what the eldest son said, Zhu Di still couldn't imagine it.

Like the common people, he believes that food is the most important thing, and this idea is not wrong.

But he is a vassal king and a well-known monarch, both in terms of vision and vision.

Zhu Gaochi's words were clear, and he really couldn't find any loopholes.

Even if a household stores food, it can only store food for two years at most, and ten taels of silver is as much as the sky, and no one does this.

It's not a year of war and chaos, and bad times.

"How to get people to shift their attention from food to commodities. The more industrial commodities there are on the market, the more people will have to buy them."

Zhu Gaochi was very sure.

Humans are social animals. When the stomach is satisfied, other needs will arise. This demand makes ordinary people take the initiative to pay for it.

Three big things to buy.

Neighbors have some, and I should have them too.

People who lie flat in later generations have never seen saving money and not consuming anything. Buying and buying is the norm.

In the book Ping An's World, the poor family of Sun Shao'an is also thinking of ways to buy the products they want.

Even Yang Bailao, a tenant in the old days, gritted his teeth and bought a red-headed rope with his daughter.

After Zhu Di digested it, he somewhat understood the boss's thoughts, and seriously asked the question he saw.

"Common people are used to saving, and I'm afraid they won't spend their excess income on consumption as you wish. It's probably like what you said, saving it underground like the local rich."

Hearing Zhu Di's question, Zhu Gaochi was not stumped.

"Food is a necessity, but it is also a commodity with very low elasticity. We must eat every day, but our stomachs are limited."

"The remaining industrial products are commodities with great elasticity. People's demand for these commodities may not be needed, or more may be better."

"If the common people feel that they don't need it, it will be a failed product that cannot stimulate the common people's consumption."

"Then how to make the common people enjoy these industrial goods more and better, we need to create the goods that the common people need."

"Seven things to open the door, firewood, rice, oil, salt, soy sauce, vinegar, tea, and coal are what the people need and cannot live without."

Before entering the age of oil and gas, in the age of coal, coal is a necessity in people's lives.

"Using briquettes requires coal stoves, and in order not to waste excess firepower, people will get used to heating hot water, so they will buy kettles."

"With a kettle, you need a kettle with water. With a steady stream of hot water, people will wash up frequently, and when there is a demand for towels, they will start drinking tea."

"Is it possible that so many demands were born out of thin air?"

"When these things become popular, everyone will buy them. People who don't buy them mean that the conditions of their families are not good. If the conditions are not good, it is difficult to please a wife."

"In order to beg for a wife, the people grit their teeth and want to buy it."

"When these products are popularized, then we will introduce better products and force the common people to continue to buy them. If anyone doesn't buy them, it will be inferior to others, and it will not be easy to please wives."

Zhu Di was speechless.

Every time I talk about these things with the boss, the topic is always inseparable from the wife.

Zhu Gaochi noticed Zhu Di's face, and he couldn't do anything about it. Begging for a wife is a need that people give birth to after satisfying their stomachs.

In order to marry a better man, women will dress themselves up more beautifully, and the demand for commodities is born.

The common people always want to compare, who is better off than others.

Comparing to the past is also to pass on the family line.

"So as long as the industry develops and the income of ordinary people increases, a market will be created."

"But my father is right to worry about the size of China Heavy Industry, so we need to establish a way to support large-scale production, that is, to create a market."

"The more workers are concentrated, the larger the scale of production capacity, and the more advanced the technology of the factory, the larger the market will be needed."

Why the Chinese model shocked the world, because the growth rate supporting the large-scale production method is incredible.

in short.

The growth of the market goes against the principle of natural industrial development. It takes one generation to create the market demand volume that the West has achieved for hundreds of years, and to meet the sales of the geometric multiplication of factory production output.

Other countries are also developing, but the speed of development is far behind China, because their markets cannot support China's speed.

This is Zhu Gaochi's big killer.

Allocate the market.

And this kind of victory is not born out of thin air. The country has also experienced failure. Based on the experience of failure, it crossed the river by feeling the stones and redistributed, thus winning.

The speed of China Heavy Industry is astonishing. Zhu Gaochi is not worried about whether the products produced will not be sold as the outside world guesses.

According to the British industrial revolution theory, it is true that it cannot meet his requirements, but the Chinese model, which can allow Ming to complete initial industrialization within a few decades, can also solve this problem.

(End of this chapter)