Bulgarian Empire

Constantine continued: "Your Majesty, this is the plan of the Ministry of Communications for the Greek Peninsula. In order to integrate the Greek Peninsula with our mainland as soon as possible, the Ministry of Communications plans to build a railway from Ioannina to Athens.

Including the seven branch lines, the total length of the railway is about 2,300 kilometers, with a planned investment of 80 million levs and an estimated construction time of 5 years! "

Ferdinand nodded and agreed, connecting the railway network of the Greek peninsula and strengthening the control of the Greek peninsula is one of Bulgaria's current established national policies.

...

Well, Ferdinand has only been away for just over two months, and left such a big mess behind, it can only be said that it is not easy to be a king!

If Ferdinand didn't ask, maybe many things would be directly classified as not important by the bureaucrats below. This is also a common problem of bureaucrats all over the world. They are anxious about the boss's worries, and worry about the boss's worries!

Although Bulgaria's current moral level has reached a very high level, Ferdinand never believed in the bureaucrats under him.

Maybe they won't make big mistakes, but it's hard to say whether they will be passive and sabotage. After all, the Bulgarian government really has a lot of things!

So much that they don't have time for political struggles! They are human beings too, how could they give up if given the chance to be lazy?

As for giving them a holiday? Ferdinand said: This is impossible! In this era, there is no such thing as annual leave. The whole of Bulgaria is a single-leave system. Is there no exception for his king?

And now is not the busiest time, when the world war breaks out, it will be really busy!

Anyone who has experienced the first Balkan War knows that in order to win the Ottoman Empire, Bulgaria devoted all its power, and many government officials have not entered the house once in several months!

Well, except for special circumstances, under normal circumstances, no matter how busy government officials are, they are more relaxed than low-level workers, right?

With a higher income, except for ten hours of working time every day, in principle, no overtime is required!

Oh, now the Bulgarian government is restructuring and preparing to implement an eight-hour working day, but Ferdinand has never agreed!

This is a question that affects the whole body. If the government changes the working hours, should other industries also be changed?

Do not suffer from scarcity but from inequality! It is common all over the world. No one in Bulgaria has questioned the ten-hour working system and the single-day off system. The most important thing is that everyone, including Ferdinand, implements this set of standards!

Of course, this is what Ferdinand thought! His working hours are all arranged freely, if there is no important thing, there is nothing wrong with him at all!

The cabinet government is not easy to eat. It is enough to bring a lot of problems to Ferdinand to make decisions. If even trivial matters cannot be dealt with, Ferdinand will have replaced him long ago!

The most important thing is that the productivity of this era is limited. If the working hours are forced to be reduced, then the capitalists must also reduce the wages of the workers.

In order to keep their income, everyone still has to work overtime obediently. Isn't this tossing like a waste of work?

Don't mention work efficiency, it's all nonsense. Ferdinand's previous life was in the 21st century, so there are still so many people working overtime?

Are capitalists all fools who don't know that working too long will reduce production efficiency and increase the rate of defective products?

Why are there still so many people working overtime?

The reason is simple, except for individual precision industries, for most factories, slightly flawed products are completely acceptable!

Not to mention in this era, capitalists dare to let workers work fifteen or six hours a day, that is after considering various factors and doing so for the sake of maximizing profits!

What if we forcibly lowered working hours without lowering wages?

That's even worse, get ready to face the economic crisis directly!

The productivity of this era is limited,

If a worker works ten hours to produce a product worth 100 levs, the cost of raw materials, machinery, and factory buildings is 45 levs, the government tax is 10 levs, the sales channel is 20 levs, and the capitalists take away 10 levs Leva, management costs 5 Leva, workers' wages 1o Leva.

If the current working time becomes eight hours, the value of the products produced will only be 80 levs, the cost of raw materials, factory buildings, and machinery may be 38 levs, and the government's tax revenue will be reduced to 80 levs. The cost of sales channels may be It is 16 Levas, the management cost remains unchanged at 5 Levas, and the wages of workers remain unchanged at 10 Levas, so the capitalists are left with only 3 Levas.

(The amortization of factory machinery costs will inevitably increase as production capacity decreases! Market rules determine that the more products are produced, the lower the unit cost!)

Obviously this is unacceptable, and 10% of capitalists can't be all profits. Most people invest part of their own money, and then use bank loans to expand production capacity!

Now the interest rate of bank funds in Bulgaria is more than 5%. If the capitalists have a profit of 10%, after deducting the interest on funds, they will still make money!

If this profit drops to 3% or even lower, there is no doubt that the company will not survive!

The cost of capital alone may not be able to recover, let alone expand production capacity! It's impossible for all capitalists to invest in full, right?

Even with so much money, no one would do that!

For example, the total investment of this project is 1 million levs, you invested 300,000 levs with 30% of the funds, and borrowed 700,000 levs from the bank with an annual interest rate of 5%.

The profit is calculated as 10% of the total investment, the annual profit is 100,000 levs, the loan repayment is 35,000 levs, the net profit is 65,000 levs, and the return on capital is 21.7%.

This number can also stimulate capitalists' enthusiasm for production. If they are allowed to invest 1 million levs in full, then the rate of return on capital will only be 6.5%. What is the return on investment talking about expanding production?

As for the increase in production cost, can it be increased in sales price? Obviously, this consequence is even more serious. International trade now accounts for 20% of Bulgaria's industrial production. If the price increases, will the products still be competitive?

Not to mention losing the international market due to product price increases, it will also cause domestic inflation and cause a chain reaction!

Just thinking about the terrible consequences, Ferdinand dared not act rashly!

Either the productivity has developed to a certain level, or Bulgaria has enough colonial markets to plunder, otherwise it is better not to mess around!

At the beginning of the 20th century, the wealth created by the whole society was limited. No matter how it was distributed, it was impossible to create high welfare. Ferdinand would not violate the laws of the market!

...

Please remember the first domain name of this book: . Miaoshuwu mobile version reading URL: