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2505 The crisis of capitalism

Xiao Letian is right. In the early era of colonialism, the Western business model was the dumping model that Mr. Krupp thought at this moment.

Because at that time, European countries regarded industrial strength as their core competitiveness, that is, industrial production capacity must be closely bound to their own territory.

Both the merchants themselves and the government are trying their best to promote the construction of their own factories on a large scale. A large number of industrial products are produced in their own country and then transported to the world through marine trade. Whether in colonies or semi-colonies, these poor and backward countries have become dumping places for Western industrial products.

Then European merchants used the profits earned by these industrial products to purchase countless resources from the colonies, and then transported them back to the local area by sea to continue to produce new industrial products for sale.

It is a continuous cycle. Under this model, there are more and more factories in European countries and the GDP is getting higher and higher, compared with the colonies becoming increasingly poorer.

The wealth of the colonies is like sheep sheep, and it is plundered to Europe again and again. The dumping of cheap industrial products in Europe will make a lot of wealth, and then the local resources are plundered at low prices, which will deepen the plunder.

Under such a model, Europe will become richer and richer, and the colonies will become poorer and poorer until one day this model cannot hold on and breaks like a tight spring.

Ultimately, this is a predatory business model that never considers the sustainable development issues of other colonial countries.

The shearing of the wool back and forth will only completely reduce the colony to extreme poverty! By that time, the colonies will no longer be able to buy industrial products in Europe, and the colony's own resources will be completely drained.

At that time, a very terrible phenomenon will occur. Europeans will suddenly find that the industrial products they produce, those originally very popular, suddenly become unsold. On the surface, it is an oversupply of production capacity.

Overcapacity of production capacity will naturally create a capitalist economic crisis, which is an indelible nightmare.

The oversupply of production capacity is ultimately due to the unsalable product sales.

Why can't I sell it? Because Europe can't digest such a large amount of industrial products at all, and other colonies around the world have been plundered by Europeans and have no ability to buy your industrial products again.

In this way, what are you waiting for? This economic model will collapse sooner or later, and it will collapse very tragically.

Moreover, the economic crisis directly induces the impulse of human war! Greedy humans will not think of changing themselves to solve problems!

All they could think of was going out to rob, bandit-like robbery, overtaking their own crisis to other weak countries!

But when all the weak countries in the world have been bullied by them, when all the weak countries have no wool to shear, all they can do is fight each other like evil dogs!

European powers began to fight each other, hoping to pass on the economic crisis to other European countries. So what was the result? Of course, it was a world war.

Xiao Letian coldly painted a hell-like picture to everyone. He directly pointed out a fatal point in the current European economic operation, that is, traditional colonialism has come to an end. If we do not actively carry out reforms, then Europe will face the final self-destruction of evil dogs fighting for each other.

"Did you figure it out now? Mr. Krupp, do you really feel that if you survive according to the past idea, will there be a future? There is no more!"

"For the present moment, you only have one way, that is, bravely welcome the changes of the times, actively seek change! Actively change your business mind."

"Don't always think about building your factory on your homeland. Be braver and build your factory into the global target consumer market."

Production, research and development, and sales in new markets. This not only allows you to make huge profits, but also because your local investment has also driven the economic development of the target market countries.

Only when the economy of the target market develops will they mobilize more vigorous consumption capacity and promote our commodity sales again.

Once an enterprise like Krupp Arsenal enters Asia, many upstream and downstream industries will benefit. First of all, in order to cooperate with the arsenal's material dispatch, the railway system will be gradually built, and then mining, steel plant smelting, and finally mechanical processing, a series of industries will flourish.

Countless workers earn wages, improve living standards, and local governments also have fiscal revenues. This money will flow back and forth in society and eventually form new purchasing power and feed back to your business.

This is the endless way to make money. Do you still not understand?

Take the initiative to build your own financial ecosystem and create your own business chain.

What you have to do is control the round-trip cycle of the entire business system from top to bottom, instead of foolishly continuing to be a producer and then predatory sales.

This is the mainstream of the future. Whoever can grasp this mainstream will be able to control the future world. At that time, what you will build will not be just a company, but a super empire.

How about it? Are you a little moved? But let me tell you, the truth is not as simple as I just said.

Another major reason for building a factory is safety!

This is the second point I want to say, please remember it!

At this moment, in whose hands is the golden route on the sea in the world? In the hands of the British, it is under the control of the Royal Navy.

My dear sir, what if your Krupp company's goods were intercepted by the British on the sea? This is not without precedent. Don't forget that when Benjamin was in power, he ordered a military embargo on our Chinese.

At that time, we had sixteen ships of Prussian arms, all of which were detained by the British and French navies!

The rifled barrel used to produce Mauser rifles and high-strength firing needles... These are industrial products that our Chinese cannot produce for the time being.

However, the sales of these strategic industrial products have always been under the control of the British.

Is it so good to feel like raising someone's breath? I think you should be very clear in your heart. Should the safety of business transactions be held in the hands of others? Have you ever thought about this problem?
Chapter completed!
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