Chapter 506 The Influence of Capital

The power of capital is strong, and its impact on Australasia is definitely more than a little bit.

In just one month since the four-year plan was announced, Australasia's foreign investment has soared more than three times, and the foreign investment in the most recent month has reached more than 27.35 million Australian dollars.

Although the speed of Russian capital investment cannot be so high every month, there is no doubt that these investments can greatly stimulate Australasia's economic growth, and Australasia's economy and industry will usher in explosive growth in a short period of time.

These Russian capitalists are definitely Australasia's lucky stars. With the help of these people, Australasia's four-year plan is definitely not just empty talk, it is very likely, and even 100% hopeful to be realized.

This is certainly a good thing, but it will also bring some predictable problems.

First of all, Australasia's labor laws must be implemented in these Russian-invested factories.

The eight-hour work system, double overtime pay and other systems must be implemented, and the welfare of the workers in these factories must be guaranteed.

This is a big challenge for these Russian capitalists. After all, they have never talked about labor laws and human rights in Russia before.

The previous Tsarist Russian government allowed these capitalists to exploit civilians at will, and even the Tsarist government was exploiting civilians at will.

But now it is different. Now in Australasia, you have to listen to the Australasia government.

The Australasia government still attaches great importance to human rights, and the welfare of workers must be guaranteed first.

Since humans entered the industrial age, the power of workers has been strong. As long as the interests of workers can be guaranteed, the interests of civilians covered by the working class are actually guaranteed.

Most workers are civilians, which is the result of this era. Guaranteeing the interests of workers can also guarantee the income of some civilians.

Civilians have income and can support their families, so they naturally will not think about rebellion and revolution.

There are two ways for capitalists to enter the Australasia market. In addition to directly creating new companies and factories, there is another way to acquire existing companies.

Either way, it has a good promoting effect on the Australasia economy.

After all, if capitalists acquire existing companies, the original business owners will definitely not sell them at a low price, but will choose to sell them at a high price.

After all, the current development environment in Australasia is still relatively good. It has not been affected by the war, and the prevention of influenza is relatively complete. Therefore, few companies have gone bankrupt, and most companies are in a profitable state.

The acquisition or joint venture of some local companies will allow more Australasian business owners to have enough funds to invest in other industries, or improve their living standards. In short, they will spend money and play a good circulation and promotion in society.

Money is the best state for a country only if it circulates continuously.

Some more extreme countries will promote people's desire for consumption. Part of the people's consumption is fed back to the government in the form of taxes, and part of it goes to other people's hands, starting the whole cycle again.

In this way, money will be circulated many times, which is unparalleled for the promotion of the economy.

But if people choose to accumulate money in their hands and do not let the money circulate, the promotion of economic circulation will fail, and economic growth will slow down.

Promoting people's desire to consume is a big problem for every government, but most countries will take a more moderate approach, such as subsidizing and discounting some goods to promote people's consumption by reducing costs.

This is not a bad idea for the people. After all, they will not suffer any loss in general and can buy more cost-effective goods than before.

The most undesirable thing is to take various measures to force people to consume. Squeeze the basic living needs of the people to promote the circulation of money in society.

In this case, the people do not want to buy things, but have to buy things.

Although it is beneficial to the country, it will also greatly increase the burden on the people, which is not good news for the civilian class.

Arthur will naturally not do this. After all, the royal consortium can stimulate market consumption with any action, and there is no need to use such a very unethical and prestige-losing decision.

The government is still very strict with these enterprises controlled or created by Russian capital. Not only must they strictly supervise them to implement the eight-hour work system in Australasia, but they must also supervise them to improve the system of protecting workers.

Only when all kinds of supervision are passed can these factories and enterprises open smoothly and start operating in Australasia.

It is worth mentioning that the government has almost no preferential policies and subsidies for these new enterprises, but there are still certain tax reduction policies for industries and fields that are more important to the country.

Generally speaking, the tax reduction is one to two years. This is not to treat these enterprises established by Russian capital well, but to encourage Russian capital to take root in Australasia and the industries that Arthur wants.

Australasia is relatively lacking in chemical industry, light industry, some textile factories and construction companies.

There are still many large constructions in Australasia, and sufficient construction companies are still necessary.

More importantly, these enterprises established by Russian capital are mostly larger than local enterprises in Australasia.

Although the lives of Australasia people are getting better day by day, this growth is accumulated slowly, and only a small number of people have become wealthy by relying on the country's great construction and development.

This also leads to the fact that most of the companies in Australasia are small and medium-sized enterprises with assets of no more than 5,000 Australian dollars, and less than 10% of the companies are large companies with assets of more than 10,000 Australian dollars.

Although it doesn't seem much, 10,000 Australian dollars is not a small number at any time.

According to the exchange rate, 10,000 Australian dollars is equivalent to 5,000 pounds, which is the value of 36,650 grams of gold.

Even according to the gold price in later generations, 10,000 Australian dollars is equivalent to more than 15 million assets, which is also only owned by a small number of people.

Now that these Russian capitals have poured in, the 10,000-dollar companies in Australasia should be able to multiply several times, and the number of 10,000-dollar households will also increase accordingly.

The value of the Australian dollar is not low. Even in British society, families with assets of 10,000 Australian dollars are definitely a minority.

This is also the disadvantage brought about by capital development. The wealth of a region is often controlled by fewer people, and the lives of civilians are actually not high.

What Arthur hopes is to improve the lives of Australasians as much as possible with his own ability.

If this four-year plan is successful, the next four-year plan will become the mainstream plan of the Australasian government in the future.

After all, the term of office of each cabinet government is only four years. Compared with the five-year plan originally proposed by Arthur, the four-year plan is more in line with the actual situation of Australasia.

Although the things completed in four years are destined to be less than five years, the policies of Australasia are always implemented under the supervision and control of Arthur, and the general direction will never deviate.

To be honest, the influx of these capitals also made Arthur feel relieved.

Arthur was worried about some relatively weak areas in Australasia before. With the addition of these Russian capitals, they should be able to catch up in a very short time, or at least make up for the gap they had fallen behind before.

A country with comprehensive development is healthy and its development potential will be revealed.

Although Australasia has caught up in some aspects, it has only been developing for 19 years, which is still a big gap with those old countries that have been developing for a long time.

This kind of compensation of background is far from being reflected in numbers. Conservative estimates show that it will take at least ten years to make up for the gap in these backgrounds.

If the impact of World War II is taken into account, it may take until after World War II for Australasia to become a completely powerful country in all aspects.

Although the benefits brought by capital to the country have been enjoyed, the disadvantages brought by capital to the country also need to be prevented.

In World War I, capital played a vital role in promoting the war. It is not an exaggeration to say that some European countries and the United States have been influenced by capital.

After the power of capital expands, it can even provoke wars between countries. From the beginning of capital showing its fangs, even national policies can be influenced by capital.

Let alone World War I, even the future World War II will be influenced by capital. It seems that World War II was launched by Hitler, but is there really no influence of capital in it? Absolutely impossible.

Even if there is no Hitler, there will be other Hitlers. Under the influence of capital, Germany will go to the battlefield. This cannot be changed by individuals.

The power of capital is vividly reflected in the United States in later generations. Behind every action of the United States, there is the shadow of capital.

It is precisely because of this that Arthur is still very wary of capitalists. These people can really do anything after they have power. Arthur's fear of the capitalist class is even equal to that of Soviet Russia.

Fortunately, in the current Australasia, Arthur himself is the largest capital and controls most of the Australasia economy.

For such a monarchy, especially when Arthur controls the economy and military, there is no need to worry about the influence of capital on the government.

After all, the size of the royal consortium is not a joke. If there is capital that wants to influence the government, it must first see whether this capital can withstand the offensive of the royal consortium.

Although the current royal consortium only has military industry and banks, it is only the royal bank that can cut off the economic source of a considerable part of the capital.

You know, the Australian dollar is jointly issued by the Royal Bank and the National Bank, and Arthur can control the issuance of the Australian dollar at any time.

When the source of currency is mastered, no matter how huge the capital is, it will only be controlled by Arthur at will.

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