Valley Emperor

Vol 2 Chapter 1979: oval structure

While walking slowly, Li Xuan continued: "In terms of expanding domestic demand, you have been doing it all the time, but the strength is still not enough, you must increase the strength!"

Hearing what Li Xuan said, Chen Lifu raised his head and glanced at Li Xuan. From his current angle, he could only see Li Xuan's profile.

Today, Li Xuan is no longer young, but he is healthy and well maintained, but his hair is starting to turn white.

After looking at it for a while, Chen Lifu quickly lowered his head, and after a little consideration, he said: "To expand domestic demand, I am afraid that it will greatly increase the income of ordinary people, and farmers still occupy the vast majority of our population structure. The income growth rate of some farmers has not kept up with the speed of our industrial and commercial economic development."

"Because we have been committed to the policy of protecting food prices, the speed of food prices and economic development has maintained a preliminary stability, but in recent years, with the rapid development of the economy, it is also to stimulate the development of industry and commerce and reduce a large number of workers and other urban low-income groups. Therefore, although food prices have increased slightly in recent years, the increase has not been large.”

"If food prices increase too high, the proportion of food expenditures of ordinary urban residents will rise sharply!"

Li Xuan also nodded slightly to Chen Lifu's question!

Although Daheng has been industrialized in the contemporary era, it has made great industrial achievements in various fields, and occupies an increasing proportion of the economy. However, more than 80% of the population of the Daheng Empire is still agricultural.

This is impossible. The population of the empire is already large. Even if it is industrialized, it cannot absorb such a huge population at the current level of industry and commerce. What’s more, so many people have to eat, and the current agricultural production technology is still relatively backward, and the per capita grain output is relatively limited.

There are not so many people working in the fields. If they all go to work in factories, people will starve to death, and many people will starve to death.

Food prices are a very contradictory thing.

Especially when most of the population in the empire is still agricultural, food prices are very sensitive. Too high food prices will greatly increase the pressure on urban residents, but too low food prices will lead to too low farmers' incomes.

Today's food prices in the empire are not too high, otherwise, the food expenditure ratio of urban residents cannot be controlled at about 60%.

But now in Li Xuan's view, the price of food is already too low, the income of farmers is too low, and farmers account for more than 80% of the population of the empire.

As for how to ensure the living standards of the urban population after raising food prices, how can they be guaranteed? Naturally, it is to increase wage income.

What the empire has to do now is not only to increase the income of farmers, but also to increase the income of workers, and where do these incomes come from?

Either to improve production efficiency or to squeeze corporate profits.

The former is very difficult. The improvement of production technology cannot be achieved in one or two days. Especially at present, the industrial technology level of Datang is not low. The tonnage of ships is several million tons, and the output of coal has exceeded 100 million tons. Compared with the past, the production technology has been improved by more than ten times. Although the technology can be continuously improved in the follow-up, it will be difficult if there is no major technological breakthrough.

If you want to continue to improve significantly, then you must comprehensively promote electrification, that is, the second industrial revolution in later time and space, the electrical revolution.

But it's hard!

It is also not easy to squeeze corporate profits.

On the one hand, in fact, the profits of many companies are not as high as imagined, because everyone's competitiveness is similar, and your competitors will kill you if your prices rise.

On the other hand, who owns the profits of the company? Shareholders and senior management, and these people are at the top of society, or vested interests, they will not be willing to give up high profits.

but!

In Li Xuan's view, this is not a big problem.

In the original time and space, it was difficult for countries to raise the wage level, and the income of workers decreased. Besides the greed of capitalists, another important factor was market competition.

In addition to domestic competition, there is also international competition.

If country a increases the income of workers, it will lead to an increase in the cost of enterprises. However, if country b does not increase the income of workers, the cost of enterprises will be low. What will happen in the end?

The products produced by the company in country B can wipe out all the products produced by the company in country A, thus causing the company to go bankrupt.

When a country's industries go bankrupt, workers will naturally have no jobs, which will lead to more severe conflicts.

But in the Tang Dynasty, there is no such problem.

Because Datang's industry and commerce are on a global scale, and there are no competitors.

The Datang Empire is now the only industrial country on earth.

The competition among Datang’s companies is the competition among Datang’s internal companies. This is very important. If, under the guidance of the Empire’s official policies, all companies raise wages for their employees, which will lead to rising costs, then the competition between them will be very important. The force will not change, or will remain the same.

Just like the Datang Empire set a minimum wage and limited the maximum working hours before, everyone has raised wages and costs, but their competitiveness has not declined, and they remain the same.

Therefore, the cost issue is not a problem in Li Xuan's view.

As for reducing corporate profits, this can better stimulate healthy competition between companies, and at the same time, it can further curb the gap between the rich and the poor.

With the advent of the industrial age, the gap between the rich and the poor in the Tang Empire has not narrowed much, and even tends to expand.

This situation makes Li Xuan dissatisfied. Li Xuan has always wanted to curb the gap between the rich and the poor and expand the proportion of the middle class as much as possible~www.wuxiaspot.com~ But unfortunately, he has not been able to do it for decades.

Now, Li Xuan thinks it's time, if he doesn't do it himself, or even fails to do it, then his heirs and even the next heirs probably won't be able to do it either.

Chen Lifu didn't know that when he was talking about excess production capacity, domestic demand, and the income of the people at the bottom with the Son of Heaven, the Son of Heaven in front of him had already thought about the gap between the rich and the poor.

The next day, Li Xuan convened many ministers in the cabinet for a meeting of the imperial cabinet. At the meeting, Li Xuan proposed a new population income structure, which is an oval structure.

"In the current population structure, there are too many, too many low-income groups, too few middle-income groups, and too many high-income groups!"

"This situation is unhealthy and will have a serious impact on the foundation of the empire!"

"In order to maintain the long-term stability of the empire and its ten thousand-year foundation, the population and income structure of the empire must be an oval structure!"

"That is to say, most of the population of the empire should be middle-income people, not the vast majority of people who are low-income people like they are now!"

Hearing the oval structure thrown out by the Son of Heaven, a group of ministers were stunned!

It's hard, hard, super hard to do this with the status quo of the empire!

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