Ming Dynasty: At the beginning of the game, Lao Zhu resigned and retired.

Chapter 951: Economics Lesson for the Zhu Family

Master Hu looked at the three stunned Zhu brothers and the silent Zhu Yuanzhang, and sighed silently in his heart.

Economics!

This subject has been criticized and even demonized by many people in later generations.

But Mr. Hu knew that the political economics he learned in junior high school was actually the only country on earth in the future where it would be broken down and taught to every child in middle school.

And when they enter society, if they can really apply this knowledge, they will at least avoid more than 80% of the pitfalls.

Not only that, by the time of the Ming Dynasty, this knowledge seemed even more correct and profound.

Well, since they had no idea about economics at all, Mr. Hu could only use the most straightforward language and try his best to make these people understand what economics is, especially the national economy.

"Alas, I always say that your thinking and vision are similar to those of ordinary people. That's because you take money too seriously and even regard it as wealth, but you don't really realize what real wealth is."

"Just like now, is food considered wealth?"

"Of course it counts!"

“At any time, a person may not live in a mansion, ride a fine horse, or drink fine wine, but he cannot live without food.”

"As long as there is enough food, then people can at least survive."

"But what about the money?"

"Those piles of hard-core silver, are they wealth?"

"uncertain!"

"Why not?"

"Because if this silver can be exchanged for food, clothing, housing, transportation and other materials, then this silver is wealth."

"But what if I can't change it?"

"In other words, even if you have an inexhaustible supply of silver, but you can't buy food, what will you do?"

"At this time, can silver be used as food or drink?"

Mr. Hu's straightforward words made several members of the Zhu family frown and start thinking.

At this time, they finally understood why Master Hu asked those questions before, asking them what to do if they had one million taels!

Now it seems that their understanding of things like money and wealth is indeed somewhat superficial.

"Okay, now that we have explained the concept of wealth, let's look back at why I said that we should use materials to offset debts during the development of the feudal state."

"To put it bluntly, there are two points!"

"First, if the grain is sold to merchants, the price will naturally be higher, but no merchant can consume all the trade grain of an entire country."

"Then, although the price will be lower if we give it to Ming Dynasty, it will still be profitable. The most important thing is that we can save time and all expenses!"

"If we look at the total account, this approach at least won't be a loss!"

"I said this, do you think you agree?"

After thinking about it, all the Zhu family members nodded thoughtfully.

That's right!

If that's the case, it may not be appropriate to say that you make money, but it is true that you definitely don't lose money.

It has been confirmed that it saves time and effort.

At this time, Mr. Hu raised his second finger.

"Then here comes the second benefit, which is what I value the most. Logically speaking, it should also be the benefit that you value the most!"

"That is the promotion of domestic industries!"

Everyone had a look of doubt on their faces, and it was obvious that they did not agree with Master Hu at all.

At this time, Mr. Hu no longer felt disappointed.

Because it doesn't make sense!

He couldn't expect the Zhu family to have mastered the highly specialized economic means of "macro-control" by now, right?

So he just laid the matter out in the open.

"Let's take the example of the southern feudal state that had three harvests a year."

"As vassal kings, what we most hope to see is that the people of our country live and work in peace and contentment, and that our national strength grows day by day."

| "So, in order to achieve this goal, the more fiscal revenue the country has, the better, and the more money the people have in their pockets, the better."

"If a country has money, it can strengthen its military, build bridges and roads, and develop water conservancy projects;"

"If people have money in their pockets, they can not only live and work in peace and contentment, but also have enough money to raise their children and buy more goods."

"And as more people buy goods, more people will start businesses and open workshops!"

"And those who run businesses and workshops have to pay taxes!"

"From this perspective, as long as the people have more money in their pockets, a portion of this money will flow into the national treasury through various means such as commercial taxes and agricultural taxes!"

"Maybe you understand what I'm saying?"

It's no wonder that Mr. Hu is so long-winded, because he is now giving economics lessons to these men from the Zhu family by using examples and breaking them down in detail.

So from time to time, he had to wait.

He can only continue speaking after seeing whether the other party understands the knowledge.

Fortunately, maybe what Mr. Hu said was indeed detailed enough, or maybe the father and son on the opposite side were deceiving themselves for the sake of their face.

Anyway, the other party nodded.

Now that everyone has nodded, Master Hu can continue talking.

"it is good!"

"Then the question comes back to the question you are most confused about."

"Why do I say that using food to offset the money and sending it to Ming in large quantities is actually a good thing?"

"That's because this way the country can not only make a profit from the price difference, but also pass some of the money to the people."

"We are thinking along the same lines as before. If this southern vassal state not only sends the grain it collects from grain taxes to the Ming Dynasty."

"At the same time, in order to avoid the situation where low grain prices hurt farmers, why not use the money in the national treasury to buy the grain from farmers?"

"Of course, this price may be a little lower than the purchase price of merchants, but it will definitely not make farmers unprofitable."

"Because the government buys grain, firstly, to store it for emergency use, and secondly, because when the government sells its surplus grain, it sells it in large quantities."

"Even if you only make half a cent per pound, as long as the quantity is large, the state not only protects the interests of farmers, but also protects the state's fiscal revenue."

“So, let’s look at it again at this time. What will the farmers think at this time?”

"The grain tax is 10% of the tax. Just pay the grain directly. It's not high at all."

"The land is extremely fertile and the climate is pleasant, so crops can be harvested three times a year."

"Even if there are several bumper harvests this year, there is no need to worry about low grain prices hurting farmers, because the government will back them up, and the excess grain can be sold to the government offices."

"In this case, will their enthusiasm for farming increase?"

“Are land reclamation, property purchase, and shopping no longer a problem?”