Speaking of which, Li Mengyang knew about this railway bubble, because this was a period of history. One of the several major bubbles in human history was that in the second half of the 19th century, the railway construction in the United States was simply impossible to say.

Let’s just say that, why didn’t there be any high-speed rail in the United States later? Because they feel that their railways are already the most perfect, and there are railways everywhere, so there is no need to upgrade or anything.

This is true, and this is accompanied by another bubble, that is, the bubble of the steel industry!

Isn’t the raw material of railways just steel? So, this is actually all connected, and the subsequent Great Depression and other things have something to do with it.

And the root of these bubbles is still in the market.

The producer does not want to reduce its production. To be honest, it is the same for everyone to put it on. If the production scale is small, the money will be less. Moreover, in fact, this matter itself also affects politics.

Western economics is really separate from politics; + governance, so Mr. Marx seems so alternative. But in fact, just talking about this railway bubble, the real essence is that the economy and politics are linked, that is, capitalists and politicians join forces!

Not to mention anything else, what is the land used for railways? And what is the land used for steel plants?

You should know that land is the basis of these industries, so there is no need to mention railways. Industries like steel mills must receive support from the state, because the steel mills themselves have high requirements for geographical location, at least they must have water. It is best to be close to coal mines and iron ore, which are all necessary conditions.

To put it bluntly, there is only one possibility of forming this bubble. That is collusion between officials and businessmen!

So. In the original United States, many people said that they were manipulated by capitalists, and this matter actually started from the Gilded Age after the Civil War.

In fact, as Li Mengyang traveled for so long, he also reviewed and studied the history before. The Civil War did fight an American, and it really made the birth of the United States like later generations. But this war actually defeated the original American elite political class!

At least, many southern political elites are finished, mainly including the oldest group of American elites in Virginia.

This is the history before, and what happened after the bubble burst?

The freight rate of the railway is getting lower and lower, and it is as low as the bargain price. For example, the first Central Railway was opened. It costs $500 for a person to go from western America to eastern America. At that time, it was the price, but later, the price came to $100, which was thousands of kilometers away. It was hard for a living person to add luggage in your era.

Then, then something appeared when the freight rate was low, which was the thing Li Mengyang said to Andrew Carnegie!

By the way, it means using the railway, and then the vast American people can buy things directly without going out. This is the original form of Taobao, which is completely the online shopping version of that year.

To put it bluntly, even the American people back then were not stupid. They also knew what to do. There were a lot of railway companies that collapsed, but it didn’t matter, the railway was left behind!

The bubble bursts, no one can stop it, but after the bubble bursts, something stays, which is very important.

Things after the bubble are very valuable. For example, this railway will of course have a great effect in the future. Now, the methods proposed by Li Mengyang are to learn from the ancients on the one hand, to play Taobao, and on the other hand, to transfer this production capacity!

The real reason for Taobao’s trick is that the American railway was built much faster than the original history, so the bubble is about to explode now.

But this thing that is going to explode is production capacity. These construction capabilities were destroyed by themselves before, but now, Li Mengyang is planning to let these production capacity come to China. This idea is very good, but it really needs to be done.

Li Mengyang himself knew that it was impossible to completely transfer production capacity. At most, it was some steel production. As for the most critical laborers, could they transport all the people?

So, the railway company must have to pour out all the money!

In this matter, Carnegie's capitalists would never want to see it because it would affect their interests.

What capitalists want is not to cut their own production, but to a larger market... because this is the benefit!

But Li Mengyang can do this now!

Yes, he is the emperor, he is the supreme ruler of the Pacific Rim Federation, and this guy was decided by the Citizens' Congress and the ruler for life!

He doesn't need votes!

OK, the last one is the key...

Why did the bubble make such a big difference in history? It is because of democratic politics. Politicians need votes and cut production, so there is no votes at all!

Because the production you cut is not just the capitalist, but also the capitalist's employees and related industries. There are many, many, and this action is very, very big. If it is democratic politics, then there is absolutely no way to do this.

In fact, if we look at it from a long historical perspective, how did the development of capitalism come about?

As production increases, productivity develops, so a market is needed, and a larger market is needed. This production, coupled with the market, something is born...

By the way, it’s modern democratic politics!

In essence, modern democratic politics is for capitalism. It should be noted that this is modern democratic politics, not the populist democracy of ancient Greece.

But this democratic politics did something as soon as it started, which was to cut off the economy. They were just politics, regardless of the economy. But in fact, democratic politics has always been for the economy, or to put it directly, for the service of capitalists. Anyway, if all the history is revealed, it reflects this point.

The democratic revolution in Britain, the Thirty Years of Germany, the French Revolution... Anyway, it never left this thing. Or... what disrupted the whole world was the development of capitalism and capitalists.

Of course. This does objectively promote the development of society. There is nothing wrong with the progress of productivity, but you must also understand the internal laws, otherwise many judgments will be wrong.

With Li Mengyang's current decision, he can only solve part of the production capacity transfer problem, and this action is very difficult, but he must do it now. Although this will cause him to lose some reputation.

Li Mengyang couldn't help but recall the middle of the first decade of the 21st century, that is, the era when he traveled through time. At that time, the world's economy once again had problems, and China, as a factory in the world, is making a very bold reform.

Supply-side reform!

At the beginning, this supply-side reform was called for industrial upgrading, then the new normal, and then it was called out directly, and it was necessary to reduce production capacity...

Simply put, it is to eliminate the excess production capacity. For example, the crude steel output at that time was 800 million tons. There were still 500 million tons idle. The world's steel output was the first in China. The second place was Hebei, the third place was Tangshan, and the fourth place was the hidden production of Hebei...

This direction is correct, because this action conforms to economic laws, and the market for all mankind was detected at that time.

Market detection?

Yes, why is there an era of sailing?

Why are there so many adventurers in Europe who explore and explore the world?

Why are so many people supporting these explorers? Many of them are rich, even the European royal family?

Just one purpose, to discover new markets!

I discovered southern Africa, and then I had labor force and black slaves!

I discovered a new route, found India, found a new continent, and found a better sea route to connect with the East. All of this is to find a market.

But at that time, the earth was explored, and the market we knew was so large. Western capitalist countries were still blindly trying to open up the market and not think of solutions to the supply side. This was definitely wrong.

However, if the supply-side reform will of course have problems with the economy and everyone will have a hard time.

Now, Li Mengyang has an advantage, which is the advantage he has obtained through the analysis of some of the above lists, that is, the Chinese market that has not been truly developed!

Yes, in the 19th century China, Li Mengyang took over China, which is a China that has not carried out much Westernization movement. Li Mengyang in China knows that there is enough room for development to digest the excess production capacity in the American region!

To be honest, the fact that the production capacity in the United States cannot be completely transferred is because Li Mengyang knows the isolationism in the United States. He knows that most of these people from the New World, especially white people, will not come to China, and the few who can come to it are after all.

So, Li Mengyang needs some material...

In front of the Palace of Supreme Harmony Square, civil and military officials from the Pacific Rim Federation, new and old, and businessmen from all walks of life, the most important are the railway tycoons who came from the United States... In fact, these railway tycoons are the hottest capitalists in the United States now. Everyone invests in railways, namely shipping tycoon Vanderbilt. This old guy comes to invest in railways.

"Comrades!" The emperor Li Mengyang appeared in front of the Hall of Supreme Harmony, and he wanted to give a speech.

"!"

"Long live my emperor!"

Anyway, popularity is enough, the speech begins!

"Comrades! Our Pacific Rim Federation has been established for more than two years, and the construction of the Chinese region is also in full swing! But! The speed is not enough! As the emperor of the empire, I am deeply worried! The construction of the Chinese region will be a construction that causes changes in the world! It is a great achievement that must be written by human history! But now, our movement is still too slow! In order to speed up, we must support the complete industrial system of the American region! And I know that the American people have always liked to explore! There was a westward movement back then! And now, I, Li Mengyang, Clint Mengyang, and Li I, are calling here! The people of the American people, go west! Go west! Go west again! We must expand the westward movement! Sublimate the westward movement! Let us change the whole world!"

"!"

"Long live my emperor!" (To be continued.)

ps: Thank you for your support! Black Car is asking for a subscription, thank you very much!

So what, in fact, I’ll just tell you something about stabilizing the morale of the army. It’s the recent situation. After joining SDR, the soft girl coins began to be free, right?

Let’s look at the previous events. Other countries also have this process. For example, Japan, after joining SDR, it gradually became liberalized. So, what’s the result?

The Japanese yen appreciates, the Japanese economy stagnates, lost 20 years, 30 years, so now!

We are empiricism, so we just go in the opposite direction. I believe everyone can understand, hehehehe
Chapter completed!