After thinking about what they needed to do, Dora and Punk thought about it and decided to listen to Gaia before expressing their opinions.
"I was about to explain to you." The two little devils beside Gaia were still holding his arms, and they didn't know what they were thinking. "Affected by this abnormal situation, if there are some rumors, it is far from the location of the incident. The economic situation in Nola Town, which is most threatened, will soon become severe, and the copper coins will depreciate significantly. If the city lord and the officials in charge of economic affairs are not pigs, they will prohibit the exchange of copper coins into gold, and seal the current existence by myself. ...Do you have a place to store gold here?"
Anrak hesitated for a moment: "Yes, yes, in my memory, banks store gold, but Mr. Gaia, this... the royal capital will not sit idly by and do nothing. They will definitely take measures to save the economy. Even if there is a problem, it will be reported in the newspaper It says the economy will improve in the next six months..."
"You have to believe what the newspapers say, you will make mistakes during the New Year." Gaia leaned forward slightly, and after complaining in her mind that there are banks and newspapers here, she said to Anrak seriously, "Neither you nor anyone else. We can understand the nature of this economic crisis, so the policies we implement will fail completely in the face of the economic avalanche.
Listen, the essence of this crisis is overproduction. According to my observation, just by looking at the places where explorers stay, it can be seen that the consumption power of ordinary people is far lower than the quantity of goods provided, so luxury goods are provided for free. , so the accumulated economic bubble will disappear in an instant. "
To be honest, Gaia has long felt that the economic development here is strange. Stocks and investments have come out, but the overall impression is still that of the Middle Ages... Is it because of the influence of the remaining elven culture?
Putting this aside, Gaia continued to use the information he had observed from the previous era and said: "If stocks start to collapse, the collapse of futures will follow, and then the crisis will affect the banking industry. During the bubble era, banks have no restraint. Loans to the nobles will now all become bad debts. The banks will suddenly find that they have very little cash in their hands and there is no way to turn around. In the face of the crisis, the people need to withdraw their deposits to survive, and they will soon find that the banks There is no way to respond to their requests for withdrawals, and then panic will spread, and people who have no temporary need to withdraw money will also flock to the banks and ask the banks to hand over their deposits, and the banking industry will collapse in an instant."
Bank collapse, how is this possible...
However, there are no logical loopholes in Gaia's words, at least Dora can't find them...
Of course you can't find it.
Gaia glanced at Dora who was silent and knew what she was thinking: "This is the fact. The elves have probably reached more than half of this road with their cultural heritage, while humans have just left the starting point. , but every day is closer to the end.”
Anrak was silent for a while and then asked: "Then, is there no way to prevent this from happening?"
"No." Gaia shook her head and leaned back on the worn sofa. "The only way is to shorten the length of the Great Depression and reduce the damage it caused. But once this big trend starts, it will roll forward. It doesn’t stop at the end.”
Anrak's expression suddenly looked very sad. She put down the bread in her hand, thought for a moment and then said to Gaia: "I want to warn the relevant departments in Nola Town."
"Okay, but will it be useful?"
"I guess they will be laughed at. But when things really develop to the point you said, I will also be affected. After all, everyone has fled, how can I build a hot spring?"
"It makes sense." Gaia nodded directly without talking nonsense.
"So." Anrak hesitated, "What I want to do is make money through the difference in exchange?"
"Remember to exchange everything for gold." Gaia responded disapprovingly when she saw that Anrak knew everything.
After a long silence, Dora suddenly asked Gaia: "Mr. Gaia, how can I reduce the duration of the depression?"
"It's very simple. There are three main points."
Glancing at Dora, Gaia said in her heart: Do you also want to participate?
But he still told a few people about previous reforms similar to Roosevelt's New Deal.
"Wait a minute!" Penke suddenly stopped Gaia's explanation. "I can understand the rectification of banking finance and the implementation of social security. Why do we need to use work for relief? Doesn't that increase the cost of relief? We need to use the money used for relief. In addition to the payment, additional expenses for various raw materials and production equipment will be paid.”
"Yes." Gaia nodded cheerfully, "But this is the essence of this measure. If it is just an ordinary relief for the unemployed, these people will buy daily necessities after receiving the relief funds, and the whole process will only have funds and goods. This time it flows. But after switching to the work-for-relief method, the royal family needs to purchase production materials and production machinery for the hired workers, and the relevant caravans will receive orders in order to transport these things to the hired workers. At the work site, a considerable-scale delivery fleet must be organized. The vehicles transporting the fleet require fuel and maintenance parts, so the fleet owner must order these supplies from the companies that produce these.
Just pure relief cannot achieve such an effect. Of course, in traditional relief activities, after the relief funds flow to the hands of the nobles through the purchases of the relief recipients, they will also invest part of the funds in commodity reproduction, but the scope of the impact is far less than that of relief for work. . "
"I see."
As soon as Penke nodded, Gaia continued: "More importantly, working-for-relief will maintain the dignity of a laborer and make them feel that they can get out of trouble with their hands, while ordinary relief will make them subconsciously feel like a Beggars, let them give up on themselves, and they may degenerate into real beggars in the near future. I think that as a leader, you should try your best to let the people live with dignity."
Miramichi burst into laughter.
"Let the citizens have dignity..."
"This is the first time I've heard this,"
"If it weren't for Mr. Gaia,"
"I will definitely treat him like a fool talking nonsense now."
Unlike Miramichi who didn't care and just wanted to take advantage of the situation, Penk took a deep breath and said with a straight face: "I always feel that the methods Mr. Gaia just mentioned look beautiful but are difficult to implement. The current situation in Nora Town probably cannot be implemented. Human beings do not have such abundant financial resources to carry out such huge ideas... I can't see the specific data, so I can't say for sure, but..."
"There's really no way to implement it."
"Mr. Gaia, your assertion makes me very helpless." Penke said this, but his expression did not mean the slightest bit of displeasure.
Gaia was also helpless: "There is nothing we can do about it. After all, the situation in the human kingdom is here. The treasury of a single country cannot support such a large-scale reform action. Considering the overall situation of the world, I think only the elves have the ability to complete To implement this set of policies, even the strongest federal Imeqa can partially implement it.”
