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Chapter III National Policy (1)

...Your social security Xu Fan was silent for a moment, and then said..., Do you really plan to keep doing it?" Zheng Yu and the marshal looked at each other calmly and nodded slowly.

"You have to think that the amount of social security you pay is low now. First of all, the social security coverage rate is less than half. Secondly, the per capita income of society is relatively low. The government only pays insurance equivalent to 5% of workers' pre-tax income. The wages of workers will be increased... In addition to the development of industry and commerce, agriculture and farming, more and more workers will join the social security, and the coverage rate is getting higher and higher, and the government's burden will naturally become heavier." Xu Fan paused and became more and more serious. "You must understand that social security is not a short-term behavior, its impact is accumulated... Your social security account seems to be getting bigger and bigger, but that is because there is no repayment now. Once the economic crisis comes, workers in the whole society will be unemployed on a large scale, including have you ever thought about the future. What should you do if there is such a day in the future?" Zheng Yu felt a stern, knowing that the Lao Hua on the opposite side finally mentioned the most acute problem.

One important reason why he was able to quickly stabilize the country and grasp power, especially gaining the general love of the majority of middle and lower classes, and even during the national war, ordinary people from all walks of life, from workers to soldiers, always stood on his side and unswervingly supported the country to continue to fight. He introduced the huge killer of social security.

〖Suppressing Muti mutiny, Zheng Yu used the opportunity of court trial to target corrupt bureaucrats, and helped the people vent their long-standing resentment with a top-down self-purification. On the other hand, he made a high-profile commitment to launch social security. After the country entered wartime economic control, it forced the promotion in all enterprises included in the control, and even took advantage of the opportunity of Congress to recession, and used wartime legislation to enforce the promulgation of a series of regulations such as the "National Labor and Social Security Regulations", and insisted on improving workers' wage income and enterprises could obtain basic profits while implementing social security, so as to minimize the resistance to implementation and benefit the people.

However, experience in his previous life told him that the welfare system is a double-edged sword, which can not only improve social cohesion and create a favorable environment for social development, but also may also lead to the hidden and delayed social conflicts. The crisis of social security often breaks out after the social security system has been operating for decades and society gradually enters the peak of aging and repayment. Once there are problems with the national economic development, social security solvency is insufficient, and the stability mechanism based on the welfare society fails, the country may experience multiple complications.

What's more, it is a country like China with a large population and complex internal contradictions.

In a country in its previous life, the high welfare system was facing collapse after decades of maintenance. In the end, it was thrown into the society by "passing the burden", causing a series of problems and causing complex evolution that caught people off guard. Chinese workers can be attracted by the emperor and the government's high welfare commitments today, but once there are problems in the future, how will they face these superstructures?

"Teacher, I have considered this issue a long time ago." Zheng Yu said frankly. "Yes, we currently have no compensation issues for social security, and the social wage level is low, and the country's fiscal and taxation power is very strong. We can still support it. The pressure in the future will be greater... But if we don't take this step now, it will be more difficult to go in the future." Xu Fan listened quietly.

"At present, the country's average nose power income is low, exports are strong, and many industrial and commercial enterprises and even farms are extremely profitable. Now in the reform, we are less obstacles and have a smaller impact on the development of industry and commerce." Zheng Yu said, "After the war, a large number of soldiers must recover. Although we have made many arrangements to absorb this part of the labor force, the existing labor market will definitely be impacted. That is to say, the cost of basic labor, despite the minimum guarantee of social security legislation, will almost certainly decline, or at least not increase. In this way, the impact of industry and commerce will be smaller." "On the other hand, within the wartime system, the price of state procurement supplies was artificially suppressed, which only guarantees the profit margin of enterprises 5. After the war, foreign trade resumed, the Russian civil war had wartime demand, and the post-war reconstruction demand, the country's industrial products will generally increase, and the demand for agricultural products will be very strong, so that industry and commerce will be willing to hire workers and pay social security because they can calculate the accounts clearly."

"I set this ratio not on a whim. Our total salary last year was about 6.7 billion Huayuan, which may double in five years. Even if all of them are included in social security, the part paid by the government will be about 600 million Huayuan in five years, which can be fully borne. In addition, social security will not always be borne by the center in the future. In the future, I will introduce income tax reforms and tilt the tax share to local governments to facilitate local governments to adopt flexible tax policies according to local conditions.

As the local tax ratio increases, it is naturally necessary to bear part of the social security payment, so the burden on the central government will gradually decrease in the future." "Government's fiscal and tax revenue currently accounts for 11.5% of the GDP. In the future, with the improvement of tax efficiency, structural tax reduction will not reduce this proportion. What's more, personal income tax will accelerate as more and more national income reaches the tax level. With the development of national productivity, the country will gradually tilt towards a welfare society, and the tax rate will naturally increase."

"I am not worried that our society will be overwhelmed by the welfare burden in decades. It is mainly because I have considered it more comprehensively when designing the system." Zheng Yu said... First of all, our system combines the Bismarck model in Germany and the "poor model" in terms of philosophy. The country's mandatory social security only ensures the basic living needs of the unemployed, does not guarantee that they live a superior life, nor does it equal the rewards for work. After the compulsory protection, the socialized insurance system provides additional protection to meet various flexible needs."

"Secondly, we have mastered the entire East Asia and will further expand our control in the future.

All economies included in our system must be consistent from trade to industrial and commercial policies.

In other words, these countries also need to adopt a welfare system, with minimum wages and unemployment protection, which has killed these countries' shortcuts to artificially lower wages to attract capital to improve productivity, forcing them to subordinate to our economic system. However, these welfare guarantee measures will definitely be strongly welcomed by these countries. By building a democratic constitutional system in these satellite countries, their leaders have to listen to public opinion and follow the people's sentiment, and can no longer sacrifice generations of people to quickly complete industrial accumulation through iron-fisted power.

Use sweatshops to achieve manufacturing transfer. This is beneficial to the empire and is also beneficial to the citizens of the satellite country. This is a win-win." "Again, social security itself is not a dead money from banks. Our social security, currently more than half of our purchase of government bonds or deposits in central banks, and the rest purchase corporate bonds, invest in state-owned banks and large enterprise groups with stable dividends to open stock markets in the future, develop corporate bonds and financial bond transactions on a large scale, and social security will also be one of the main investors, sharing the benefits of the rapid development of the country." "Finally, inflation

Inflation cannot be eliminated in the long run." Zheng Yu paused and continued, "Our social security will have an inflation-linked mechanism, but in fact the actual role of inflation will always be greater than the superficial statistics... In the same sentence, social security is only to guarantee the minimum demand, and the purpose is to provide guarantees for the long-term and stable development of the national economy rather than to meet the needs of the people who are lazy and frustrated." "Of course, there are still many technical problems here. For example, social security funds are currently paid at a lower wage, but not

The cost of living is increased, the degree of security is increased, and the amount of security may be increased when you have to pay, so some problems will inevitably arise... But these problems are technical, at best, actuarial issues, and do not hinder the existence and destruction of the social security system itself. Bismarck is a good example in this regard: the pension he stipulates is collected after the age of seventy, but the question is how many workers in Germany can live to the age of eighty or ninety?" Xu Fan looked at the man with a sincere look and sighed with regret: "You are..."

Xu Fan's god was a little surprised, and with indescribable playfulness, he looked at Zheng Yu and remained silent.

Zheng Yu just looked at him calmly.

After a long time, Xu Fan sighed with a wry smile, shook his head, and did not say anything else.

The two fished silently.

"I have read your five-year development outline." After a while, Xu Fan said again, "Great is grand enough, but there is a very critical issue."

“And first it’s your economic development strategy.

"Xu Fan said, "Your plan is very detailed, but because it is too comprehensive, I don't know which aspect you should focus on in the past five years. You have to know that our resources are limited..."

"My idea is very simple: change the development strategy, make up for debts, and consolidate the long-term foundation for national development." Zheng Yu took a deep breath and said calmly. "In the first ten years, the country adopted high tax revenue, concentrated its efforts to build infrastructure, and developed strategic development in the industry. In terms of capital, capital mainly relies on the royal family, governments at all levels and financial deficits, rely on financial leverage, concentrate its efforts to develop heavy chemical industry, develop military industry, and then build a large-scale transportation network. In terms of light industry, to be realistic, it mainly relies on market forces, and capital and labor costs have been raised by the abnormally developed heavy industry, and its own potential has not been fully utilized."

"The next step, what I have to do is to reduce the speed of the construction of transportation infrastructure that has developed ahead of schedule in the past ten years. The first decade of development is to more effectively control the entire country, improve central control, and enhance the mobility and supply of national defense forces, and more to obey political and national defense needs. Secondly, at that time, three million bannermen and Hanjiān worked for free in labor camps. Now these people have turned into controlled labor after their labor service, but they have to pay wages. Although only half of the cost is raised. Without these free labor, it will be difficult to continue to build such a large-scale road network infrastructure."

"But this reduction is not an absolute decrease. The country's industry has developed too fast in recent years, especially in the past four years, the entire country's industrial material strength, construction machinery manufacturing power, and even engineering efficiency are no longer the same. This reduction is only a decrease in the proportion of total investment. After all, in addition to the restoration of Siberia and Central Asia Railways, the expansion and expansion of the double-track lines, the construction of new railways and highway branches of the headquarters are also very large, and the absolute amount is still greater than before."
Chapter completed!
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