stjorthotic Chapter 710: Take The Initiative To Reduce Prices, Guide Purchases, Encourage Consumption, And Impro
Chapter 710: Take The Initiative To Reduce Prices, Guide Purchases, Encourage Consumption, And Impro
Yan Changqing, who was seated again, looked up and saw Ru Taisu looking at him with faint eyes, and said slightly puzzled:
"Why is Ru Shangshu looking at me like this?!!"
“But what’s wrong with me?!”
When Ru Taisu heard this, he immediately restrained his gaze and had no intention of telling the guess in his mind. At the same time, his expression returned to normal and he brought the topic back to the issue of 10 million Ming Dynasty Tongbao Banknotes that he just mentioned~ It says above:
"I just didn't understand. Since 'inflation' and 'deflation' are economic theories discovered and summarized by Shang Shang."
"Then Shang Sheng should know better than anyone else what consequences the issuance of over 10 million Ming Tongbao banknotes will bring.
"But even so, Shang Sheng still asked me to issue an extra 10 million Ming Dynasty currency notes. I'm sorry that I am not very talented and have little knowledge as to the reason for this. I would like to ask Shang Sheng to clarify my doubts!"
Hearing Ru Taisu's words, Yan Changqing did not doubt him, and then explained gently:
"Since Ru Shangshu knows the theory of 'inflation', he should also know it."
"The direct reason for the occurrence of inflation is that the number of Ming Dynasty currency notes issued by the imperial court exceeds the number of Ming Dynasty currency notes required for current circulation and transactions in Ming Dynasty society."
"The essence of this is that the total social demand is greater than the total social supply!"
"This has led to a series of 'inflation' phenomena such as rising prices, depreciation of banknotes, and economic overheating.
"To put it bluntly, people have more money, but the number of goods they can purchase is small."
"So people have to increase the price to buy goods of the same value as the original ones, which leads to the value of the 'money' in their hands and the depreciation of treasure notes."
"To put it another way, there is more money and less goods and materials."
Ru Taisu nodded and expressed his understanding. He also knew this part of the theoretical knowledge. The emperor and other princes had also told him about it before.
Seeing that Ru Taisu could understand what he said, Yan Changqing's eyebrows became more cheerful, and he said with a faint smile:
“But, are the imperial court’s supplies really low?!!”
"Or, is it true that the imperial court cannot come up with commodities and materials to offset the over-issuance of 10 million Ming Dynasty currency notes?!!"
Ru Taisu shook his head repeatedly and said:
"Of course not. Let's not talk about other materials for now. The hundreds of millions of kilograms of sea salt and hundreds of millions of kilograms of salted fish stored in Haizhou City are worth less than a thousand dollars."
Yan Changqing nodded and further said:
"So now the national court has goods and materials worth tens of millions of guan, and at the same time, it is preparing to overprint 10 million guan of Ming Dynasty treasure notes, and then put both into the market at the same time."
"Will this move bring about a big change in the overall social demand and social supply?!!"
"Actually, there is no major change!"
"Because the total demand in society, that is, the money in the hands of ordinary people, has increased by 10 million yuan."
"But at the same time, the total supply in society, that is, the quantity of commodities and materials, has also increased by 10 million yuan worth of commodities and materials!"
"Ordinary people can still buy goods of the original value at the original price, so the value of Ming Dynasty Tongxing Baobao has not fallen, and naturally there will be no so-called inflation."
"And the serious consequences caused by 'inflation' are even more impossible to talk about."
"In fact, if the imperial court does not issue more than these ten million Ming Dynasty currency notes."
"Then when the hundreds of millions of kilograms of sea salt and hundreds of millions of kilograms of salted fish meat worth 10 million pounds are put on the market, there may be an oversupply in a short period of time." 1
“As a result, the number of treasure notes in circulation during the Ming Dynasty was far less than the value of commodities and materials, thus causing the phenomenon of ‘deflation’!”
"As for the consequences of 'deflation', I think you should know something about it from Your Majesty and Your Highnesses. "
Having said this, Yan Changqing paused and then said:
"In the final analysis, the Ming Dynasty's currency is just a way to measure the value of commodities."
"It is the abundance or scarcity of commodities and materials that determines the value of the Ming Dynasty's currency!"
"It is not the quantity of overprinted Ming Tongbao banknotes that determines the value of commodities and materials."
"As long as the imperial court has sufficient reserves of commodities and materials and can redeem the Ming Dynasty Tongxing Baobao issued to the people in real time, then the value of the Ming Dynasty Tongxing Baobao will not be depreciated!"
"Ru Shangshu can use the following formula to calculate the currency circulation rules to calculate the amount of currency necessary for circulation within a certain period of time.'
“That is: the amount of money necessary for circulation within a certain period = commodity price × commodity circulation volume/unit currency circulation velocity = total commodity price/unit currency circulation velocity!!!”
After listening to the story of Shang Sheng Fan Bai, Tai Su could not help but fall into deep thought.
Yan Changqing did not disturb him. While he drank tea to moisten his throat, he quietly waited for Ru Taisu to think about the truth.
After a while, Ru Taisu just raised his head and looked at Shang Sheng Fan Bai, with a look of confusion in his eyes:
"What Shang Sage said, 'The amount of goods and materials determines the value of the Ming Dynasty's currency. I can understand this."
"But the tens of millions of Ming Dynasty currency notes issued by the national court are actually the over-issued Ming Dynasty currency notes for hundreds of millions of kilograms of sea salt and hundreds of millions of salted fish meat!!!"
"In other words, only the 10 million Guan Ming Dynasty currency notes issued by the national court to the common people can be used by the common people to buy hundreds of millions of jins of sea salt and hundreds of millions of jins of salted fish meat. Only in this way can the total budget be achieved. Supply and demand balance."
"But if the people get the 10 million Ming Dynasty currency notes, they don't use them to buy hundreds of millions of kilograms of sea salt and hundreds of millions of kilograms of salted fish meat, but instead use them to buy other commodities and supplies."
“Wouldn’t this lead to a shortage of other commodities and supplies, as well as an oversupply of sea salt and salted fish?!!”
"In the end, some commodities and supplies experienced a 'deflation' phenomenon, while sea salt and salted fish meat experienced an 'inflation' phenomenon!!!"
Hearing Ru Taisu say such words, Yan Changqing was sure that he really understood what he just said.
[Sure enough, he is worthy of being a person who can become the Minister of the Ministry of Revenue. This understanding and absorption ability is indeed very good!!!]
After a slight admiration in his heart, Yan Changqing opened his mouth to answer the question raised by Ru Taisu:
"Theoretically, that's true."
"The over-issued 10 million Guan Da Ming Tongbao banknotes were issued in order to cash in on the purchase of hundreds of millions of kilograms of sea salt and hundreds of millions of kilograms of salted fish meat."
"So I only used all of the over-issued 10 million Ming Dynasty currency notes, or most of them, to buy sea salt and salted fish.
"In this way, the overall supply and demand balance between the quantity of commodities, materials and money in society can be maintained."
"Otherwise, there will be what you just said, which will lead to 'deflation' in certain commodities and materials, while sea salt and salted fish meat will have 'inflation'.
"So in order to prevent the phenomenon you just mentioned, we need to use the national court's policy to let the people use the extra 10 million Ming Dynasty currency notes as much as possible to buy sea salt and salty salt. In terms of fish.”
After hearing Shang Sheng Fan Bai's answer, Ru Taisu couldn't help but mutter silently:
"Let the common people carry out limited consumption through the policies of the national court?!!"
After a while, Ru Taisu raised his head and looked at Shang Sheng Fan Bai. Qing became more and more confused and said:
“Does the imperial court still have to impose regulations on how people’s money should be used?!!”
"For example, the wages given to them by the imperial court to hire them to build roads are only allowed to be used by ordinary people to purchase sea salt and salted fish meat, but they are not allowed to purchase other commodities and supplies?!!"
“Can the common people accept this?!!”
"And how does the imperial court judge that the wages paid to the people for road construction are used by the people to buy sea salt and salted fish meat instead of other commodities and materials?!!"
Hearing this, Yan Changqing couldn't help but smile, then shook his head and said:
"Ru Shangshu made things complicated. What the court should do is to guide and encourage, rather than impose requirements and regulations."
“And the easiest thing is to lower the price!!!”
"Ru Shangshu should also know that once these hundreds of millions of kilograms of sea salt and hundreds of millions of salted fish meat are put into the market, the sea salt and salted fish meat on the market will be oversupplied in a short period of time, which will lead to high prices. down."
"By then, the prices of sea salt and salted fish meat will not only drop to the price of cabbage, but they will at least plummet by 30 to 50 percent!"
"Nowadays, the average price of salt in Daming is about 50 cents per catty. If it drops by 30 to 50 percent, it will fall to about 35 cents to 25 cents per catty.
"Similarly, the average price of Daming salted fish meat today is about 30 cents per catty. If it drops by 30 to 50 percent, it will fall to about 21 cents to 15 cents per catty."
"Instead of waiting for the prices of sea salt and salted fish meat to fall passively, the imperial court should take the initiative to lower the prices of sea salt and salted fish meat to form price discounts and attract the people!!!"
"For example, in the past, due to the fact that the Ming Dynasty had just been founded, all parts of the country were in ruins, so they had to use forced labor to build various engineering facilities."
"The imperial court is deeply guilty of the harm this has caused to the common people, and the imperial court will always bear in mind the hard work of the common people."
"Now, after more than ten years of development and recovery, the Ming Dynasty can still be considered to have achieved something."
"So in order to make up for the common people and repay the common people of Ming Dynasty.
"In the future, Ming Dynasty will start from hiring ordinary people to build concrete cement roads, gradually and completely abolish the compulsory corvee collection system, and implement the system of "work instead of labor".
"So that ordinary people will no longer have to suffer from forced labor in the future, and at the same time, they can earn wages and subsidize their families through voluntary employment."
"In addition, in the past, salt sold for fifty cents per catty, but now if you buy it from the national court, it will directly drop to thirty cents per catty!!!"
…………Please give me flowers……
"Also, salted fish meat that used to cost thirty cents per catty, but now if you buy it from the national court, it will be directly reduced to fifteen cents per catty!!!"
"All ordinary people who have participated in the construction of concrete and cement roads can rely on the employment certificate for the construction of concrete and cement roads issued by the local government.
"Directly go to the Daming Supply and Marketing Cooperative, which is about to be opened by the national court, and buy salt for thirty cents per catty and salted fish for fifteen cents per catty."
"However, since concrete roads across the country have not yet been fully constructed, in a short period of time, it is possible to transport and distribute 30 cents per pound of sea salt and 15 cents to all parts of the Ming Dynasty.
A pound of salted fish meat is not too much. "
"So people who want to buy sea salt for 30 cents per catty and salted fish for 15 cents per catty can save their money for now and wait."
"The imperial court now has hundreds of millions of kilograms of sea salt and salted fish reserves, which can definitely meet the purchasing needs of the people of the Ming Dynasty."
"No later than three months later, the first batch of sea salt worth thirty cents per catty and salted fish worth fifteen cents per catty will be transported and distributed to supply and marketing cooperatives throughout the Ming Dynasty!"
"Every month after that, there will be a steady stream of sea salt worth 30 cents per pound and salted fish meat worth 15 pennies per pound for people with proof of employment status to buy.
purchase.
"Even if the concrete cement road is built faster, it can be completed one day earlier."
"Then the national court can transport and distribute more sea salt and salted fish meat to supply and marketing cooperatives across the Ming Dynasty as early as possible, so that more people who need sea salt and salted fish meat can buy them.
"
"In this way, Ru Shangshu thinks that the common people will use all of the 10 million Ming Dynasty currency notes issued, or most of them will be used to buy sea salt and salty salt.
Fish?!!”
As soon as Yan Changqing finished speaking, Ru Taisu, who was sitting opposite, couldn't help but applaud and praised:
"Wonderful!!! Wonderful!!!"
"This plan is really brilliant!!!"
If we really follow what Shang Sheng Fan Bai said, then except for some people who really have to spend money, they will take the wages that are given to them.
Go buy other commodities and supplies.
The vast majority of other ordinary people will inevitably save all the wages paid to them, preparing to use them to buy the sea salt and salted fish officially sold by the imperial court.
After all, the sea salt and salted fish meat officially sold by the imperial court this time can be said to be sold at half the price compared to before!!!
In other words, the same price that used to buy a pound of salt and salted fish meat can now buy Guangdong and Guangxi salt and salted fish meat!!!
If the common people don't take advantage of such a huge advantage, then they are no longer common people.
Oh, no, it cannot be said that the common people took advantage. This is the harm caused to the common people by the state and the imperial court, and the compensation and reward for the hard work of the common people.
Report!!!
It is conceivable that as soon as this rhetoric came out, the people of Ming Dynasty would inevitably rise a lot again.
After all, since ancient times, which court has ever felt deeply guilty for the harm it caused to the common people?!!
Which court would say that it keeps the hard work of the people in mind?!!
And then provide real benefits compensation to the people?!!
It can be said that there is no!!!
Even if it is true, it is just words.
Daming actually sells salt and salted fish at half price!!!
Absolutely no dynasty in the past could achieve such huge concessions and benefits to the people.
Although the common people may not have a very long-term vision, they still have a scale in their hearts and can tell who is good to them and who is not good to them.
Especially since it is only the sixteenth year of the Ming Dynasty, it has not been long since the chaotic times of the late Yuan Dynasty.
There are still a large number of ordinary people who have experienced the oppressive rule of the Mongolian Yuan Dynasty, as well as the chaotic rule of the late Yuan Dynasty and the struggle of princes for hegemony, and then survived to the current era of Ming Dynasty rule.
Comparing the chaotic rule of the princes at the end of the Yuan Dynasty with the oppressive rule of the Mongol Yuan Dynasty, they know better than anyone else whether the Ming Dynasty is treating them well or not.
If the remnant forces of the Northern Yuan Dynasty, or other princes from the late Yuan Dynasty, want to make a comeback, then there is no need for the Ming court to take action.
No, I don’t agree.
To put it bluntly, the people's hearts are with the Ming Dynasty, not with the royal court of the Northern Yuan Dynasty or the princes of the late Yuan Dynasty.
Even if the remaining forces of the Northern Yuan Dynasty and the late Yuan princes could be defeated once, they could even defeat the Ming army many times.
But with the support of 60 million people, the Ming Dynasty could raise a large army at any time and fight again until the remnants of the Northern Yuan court and other late Yuan princes were defeated.
Until the power is completely wiped out!!!
PS1: The serial is hot, and we urgently need all the handsome guys, beauties, and big guys to order and customize! I wish all the big guys who make full orders and customizations to get rich overnight, good health, and all the best.
Good luck! Thank you all! I’ll give you some crispy snacks!