Holy Roman Empire - Chapter 459

Chapter 459: Chapter 32: Adaptation to Local Conditions
 

Looking at the gray-haired old Prime Minister, Franz began to have his doubts, asking himself, “Is this really the right thing to do?”

But he quickly dismissed the thought, understanding that politics has no place for indecisiveness. Besides, Prime Minister Felix still looked very spirited and was more than capable of handling state affairs.

Franz, who was sentimental, did not like to change his staff too often. Except for those who left early due to health reasons, the remaining cabinet members had served for more than two decades.

The stability at the top ensured the continuity of policies. All these years, as Austria maintained its rapid development, they had all been contributors to this success.

As for the fear of ministers overshadowing the monarch or the concern about the cabinet becoming too powerful, those were issues only a mediocre ruler would worry about. Franz had no such concern.

If handled properly, “ministers overshadowing the monarch” could be transformed into a story of a “sage king and wise ministers.” Most of the time, capable ministers serve to highlight the greatness of a king.

With just a little guidance of public opinion, the achievements of the ministers could be attributed to the Emperor’s ability to recognize and utilize talent, eliminating any need to compete for credit with his subordinates. Only those with an illegitimate claim to power needed to worry every day.

In this respect, Western emperors were much happier, not having to worry about their subordinates growing too powerful and rebelling. The consciousness of legal rationality had taken root in people’s hearts, and the trend was to look at lineage, not a world where “if one is not a king or general, then one must be of noble birth.”

Of course, the Revolutionary Party was an exception; they were professional rebels and could not be treated the same.

The information had already been passed on to the cabinet members. Over the years, Franz and his colleagues had developed an understanding that it was the cabinet that charged into battle for the Emperor’s aspirations.

Any doubts were first discussed secretly within the Imperial Palace, and after a conclusion was reached, it would be raised within the government. Apart from the cabinet taking responsibility for the issues, Franz took care of the aftermath.

After reviewing the information, Prime Minister Felix objected, “Your Majesty, encouraging childbirth is not a problem, but we have to consider the actual situation.

Looking at the average income of our people, theoretically, a couple could support five or six children without much problem. But in reality, for some, it is still a significant pressure.

Especially for the working class, once they have children, it becomes very difficult for both spouses to work at the same time. Losing one income increases the financial pressure on the family.

The areas with declining birth rates within the country are all cities with rapid industrial development. Due to the pressures of life, many working-class families dare not have children.

If we want to increase the birth rate, we must first solve this problem. Otherwise, as the era evolves and the number of workers increases, it will become increasingly difficult to manage.”

The poorest group in Austria is now the working class. Although their income may be on par with that of the farmers, their standard of living is nowhere near comparable.

After all, the cost of housing and daily living consumes a large portion of their wealth.

On the contrary, the farmers are more comfortable. With the opening of the colonies, the land issue within the country has been completely resolved, and the average land area per person has greatly increased, as has their income.

Most families have already paid off the land redemption fees in advance. This is the wealthiest period for farmers. However, Franz was clear that these good times would not last long.

With the development of productive forces, the disparity between agriculture and industry will only grow larger, and these advantages will soon be offset.

Currently, there is only a small supply of industrial products, and demand is low. The earnings from the land are enough for daily expenses, but as people’s needs grow, this money will not suffice.

Raising income from the land is too difficult, and in reality, it is actually in a state of continuous decline.

One only needs to look at the Tsarist Government, which tirelessly farmed the land to know that it would only be a few years before the Russians re-enter the food market, posing a significant impact on the market with a large influx of Russian grain.

Changes in the supply-demand relationship will directly affect the international market price of grain and, consequently, the income of Austrian farmers.

Franz had always been proactive in his work. Increasing domestic consumption is the most effective method, and the policy of encouraging childbirth is the most beneficial measure. With an increase in population, the consumption of food naturally increases as well.

Franz directly asked, “Prime Minister, what’s your plan?”

Knowing Prime Minister Felix as he did, Franz was sure that since a problem was raised, a solution was already prepared.

Prime Minister Felix answered, “Your Majesty, actually it’s not difficult to resolve this issue, though it will put some pressure on the finances.

Previously, we have issued related laws, such as mandatory paid maternity leave and prohibitions on firing, but these are just a drop in the bucket.

After giving birth, children still need care, and during this period, female workers cannot work as usual. Often after paid leave ends, they are placed on unpaid leave by the company.

Those with parents to help are better off, but these are the minority. Most take care of their children themselves.

Given this, it might be better for wives to stay home and look after the children outright. The government could provide some subsidies to alleviate their financial pressures.”

This was very Teutonic; Germany in later times also encouraged wives to stay home with the children. It’s surprising that such a concept existed at this time.

This idea wasn’t advanced but rather a practical necessity. Infants can’t be left unattended, otherwise, they could starve to death if their parents worked overtime. For those actively seeking to procreate, this essentially amounted to unemployment.

Franz had no objections to providing subsidies; the cost would eventually be borne by the enterprise anyway. Since companies had already taken on paid maternity leaves, this could be converted into the form of tax revenue.

The paid maternity leave could entirely be abolished, with the government directly providing childbirth subsidies. Any shortfall in tax revenue could then be covered by the government.

As for the issue of reduced labor force, Franz was not the least bit concerned. The impact was truly negligible; at this time, men primarily made up the workforce, and the number of female workers in Austria did not exceed two million.

It is impossible for so many people to have children at the same time, right? If that is the case, Franz does not mind. This subsidy is not long-term; it is only for a limited period.

After some thought, Franz said, “There is no problem with issuing subsidies. The cabinet should determine the standard and duration of the subsidy as soon as possible.”

Originally, Franz had planned to distribute flour, which was both economical and practical. A subsidy of 20 kg per month, to be distributed for five years, but he stopped before the words left his mouth.

From a cost perspective, distributing flour directly is indeed the cheapest option. As a major grain producer, Austria has always enjoyed low domestic grain prices.

If the government were to uniformly supply flour, subsidizing 20 kg per person per month, the cost could be controlled within 25 pennies, and the annual subsidy per person would not exceed 3 Divine Shields.

The purchasing power of the Divine Shield is that strong: 1 Divine Shield is approximately equivalent to 3.66 grams of gold. It would only be a problem if its purchasing power were not strong. This is even before the birth of chemical fertilizers, otherwise, grain prices would not be this high.

Based on these figures, the child-rearing subsidy for five years would amount to just 15 Divine Shields. To increase the population by one person for 15 Divine Shields seems very cost-effective.

Things are not that simple, as this action would lead to a series of impacts. For instance, the price of flour in the market would be affected.

20 kilograms of flour, along with the ingredients to make bread, are enough for a couple to consume for a month, and not everyone eats only bread.

Since that would be enough, naturally, there would be no need to buy more. The businesses selling flour would decrease, and so would those selling bread.

It may seem insignificant, but in a market economy, everything is connected, and these changes would also involve other industries. The final consequences are uncertain even to Franz.

Rashly breaking the economic cycle is definitely more harm than good for a country. The original intention may be to save money, but while fiscal expenditures might be reduced, fiscal revenues would also decrease.

This account must be carefully calculated, and Franz would certainly not make a decision recklessly. If the reduction in tax revenue were to exceed the savings in expenses, wouldn’t that be a significant loss?

Finance Minister Karl suggested, “Your Majesty, it would be best for the local governments to develop the specific policies. We just need to provide guidance.”

The situations vary from region to region and cannot be standardized. For example, in Vienna, we cannot encourage housing rewards, or the city’s population would explode in a few years.”

Franz quickly realized that a one-size-fits-all approach was indeed not feasible. These measures could only serve as references, as the conditions that the colonies could offer were unattainable for many local areas within our homeland.

Take Vienna as an example, if they were to emulate New Brook, the biggest issue would not be a population explosion but government financial bankruptcy.

Unless Franz, the great landlord, provided land unlimitedly and depressed housing prices, given the current prices of over 20 Divine Shields per square meter, and 40 square meters costing 800 Divine Shields, it would be difficult for the Vienna Government not to go bankrupt.

Depressing housing prices is unrealistic, as Vienna is a special case. The fame of the City that Never Sleeps has brought about a brand effect. Unlimited land provision is also nonsensical, as it would be a disaster if the infrastructure could not keep up.

Furthermore, differences between urban and rural areas, regional disparities, income disparities – these issues all need to be considered. If problems arose, it would be difficult to resolve them.

Allowing local governments to formulate policies according to actual conditions would be much better. Different areas offering different rewards is the most practical.

Since this is tied to their performance, there’s no worry that the bureaucrats won’t work hard. Those who don’t do well will be replaced by those who can do better; Austria is not lacking in officials.

In this way, the Cabinet becomes a supervisor instead of an executor, and even absolved from responsibility. Even if the people are dissatisfied, they would only blame the local governments.

After all, the standards are different in each place, which is enough proof that the Central Government has good intentions; the problem lies in the local governments’ implementation.

One can imagine that in the future, the wealthier areas will have higher subsidy standards, and the poorer areas will have lower ones.

And the birth rates just inversely fall into place: economically developed areas have low birth rates, while the poorer the area, the higher the birth rate.

…

While Franz was striving to increase the population, at the Vienna International Hotel, a conference regarding the redefinition of European regions was underway.

Unexpectedly, the foreign ministers of England and France both attended this low-profile international conference. As the host, Austria’s Foreign Minister Weisenberg had to personally oversee the meeting.

With the foreign ministers of the three great powers gathered together, the level of the meeting immediately rose, causing embarrassment for the other country representatives who came to play a minor role.

Diplomacy also respects the principle of equivalence; representatives of lower status struggle to speak with confidence. Moreover, small countries inherently lack confidence in international diplomacy, resulting in even less influence.

Fortunately, the conference only concerned the redefinition of European regions – at the core, it was merely a naming issue, at most, changing a geographical term.

Everyone first agreed that the geographic terms did not represent legal claims, and they signed an international convention. As it would not affect actual interests, the conference proceeded very pleasantly.

The host, Minister Weisenberg, was very satisfied, and just as he was about to declare the meeting a success, a staff member hurried over and whispered in his ear.

Weisenberg’s previously jovial expression quickly turned gloomy. The troublemakers had arrived, and if it were not for the presence of so many delegates, he would have erupted on the spot.

Just after the international meeting determined that the Lombardy and Veneto regions belonged to the Germany Region, the Italians began protesting outside.

The speed of the information leak was swift, obviously premeditated. Particularly, for such an event to occur under the nose of Austria, it put the Vienna Government directly on the defensive.