The land of Shenqi, Zhongyang.

"Your Majesty, this battle is very expensive."

"However, because there are too many meritorious soldiers, even though they have obtained a lot of spoils, they have not fallen into the government's bag."

"Those captured Linhu people also have to spend huge amounts of money to support them."

"In addition, the Huns who moved to Shenqi's land can be exempted from rent for two years, and the government cannot make ends meet!"

"Now, the government has to hire many Huns for a fee to perform labor service, and to repay the money borrowed from merchants from various countries before, and to pay for the huge consumption of newly built properties."

"The land of Shinki is already heavily in debt and overwhelmed!"

Li Si was holding a thick stack of documents, his face was full of anxiety, and even his hair turned much white.

The huge expenses of the land of Shenqi in the past six months have almost made Li Si breathless.

In half a year, the land of Shenqi flourished.

Whether it is roads, ditches or real estate, it is vivid.

Because Shenqi's land owed a lot of money to merchants from all over the world, they had to give them preferential policies, so more and more merchants gathered in Shenqi's land.

The improvement of people's lives, coupled with the entry of big merchants from various countries, has prompted the prosperity of business in Shenqi, and has become a holy place in the minds of businessmen from various countries.

Unfortunately, commercial tax revenue is far less than the huge consumption of Shenqi.

Zhao Jia's generous performance certainly allowed the Huns who had recovered their freedom to live in Zhao with peace of mind.

Unfortunately, whenever Li Si looked at the huge expenses in the treasury, he felt dizzy.

He knew very well that the prosperous Shenqi land had been so weak that it was even poorer than the large Hun tribe leaders.

At least a few of the great leaders of the Hun tribes not only relied on military achievements to pay off their foreign debts, but also accumulated a lot of money and slaves.

In Li Si's traditional concept, the government should have a much greater income than the expenditure, and the treasury has a huge surplus, so that the country can be considered to be prosperous and strong.

But now, the surface of Shenqi is very prosperous, but the government is so poor that it sounds like a jingle.

Li Si was very worried that when the government could not borrow money, although the regime could not collapse, it would greatly reduce the credibility of the government and even complain to the people in the country.

Just because the government that cannot afford the money cannot continue to exchange for past promises.

Zhao Jia took the document, looked around for a few seconds, and said, "Didn't he just owe some foreign debt? As long as he can still borrow money, there is nothing to worry about."

"Your Majesty still wants to continue borrowing money?"

When Li Si heard this, his expression was extremely wonderful, and he couldn't even keep up with Zhao Jia's brain circuit.

Zhao Jia said naturally: "The government is short of money, either to increase revenue or reduce expenditure."

"Shenqi's land is in a period of rapid development. If the reduction in expenses begins, it will not only make previous plans become a bubble, but will also lead to a reduction in the credibility of the government and cause a series of social problems."

"Since that's the case, then there's only open source."

"The so-called open source means increasing the money and food that the government can control, either using its abilities to make money, or continuing to borrow from major merchants from various countries."

"These are all very simple questions!"

Li Si couldn't help swallowing and said, "But the government has already owed a lot of money, grain and goods from major merchants. How could they continue to lend money to the government?"

Zhao Jia said in surprise: "Isn't it because the government has owed a lot of money, grain and goods from major merchants that they will continue to lend to the government?"

"If you don't borrow money, it will lead to problems in government operations, how can you pay off the loan?"

"If you can't pay back the loan, the big businessmen from all over the country will lose all their money."

"Sir, will they continue to borrow?"

When Li Si heard this, he was a little stunned and suddenly felt that his worldview had been subverted.

He thought about it carefully and found that he had no way to refute Zhao Jia's remarks.

It's a place to change.

If Li Si was a big businessman who was profit-oriented and lent to Shenqi's extremely huge materials, he would never want to watch the fall of the government in Shenqi's land before the other party paid off his debts.

In that case, Li Si will lose all his money.

Zhao Jia looked at Li Si's stunned look and continued: "What's more, as a condition for borrowing from these big merchants, the government has also issued many preferential policies to big merchants in various countries."

"The wine processing workshops, Tianxiang Buildings, and even paper and books in the land of Shenqi are all involved."

"Even if it is for the continuous gain, these big businessmen will never sit idly by and watch the government fall into a state of embarrassment."

At that time, Zhao Jia borrowed loans from major merchants from various countries, but with his reputation, he could borrow a lot of money, grain and materials.

However, because Zhao Jia needed too much money and food, even though he had a huge reputation, the big businessmen were quite hesitant and did not dare to risk losing all his money and borrow huge sums of money to Shenqi's land at the risk of losing all his money.

In order to stabilize the hearts of these big businessmen and tie them together with Shenqi's land, Zhao Jia simply used the long-coveted wine processing workshop, Tianxiang Tower, and paper, books and other items as collateral.

Of course, Zhao Jia only mortgaged the sales share, not the transfer of technology.

These technologies are also the fundamental reason why the Shinki land can flourish. They are protected strictly, and hundreds of spies killed every year.

Whether it is fine wine, food, books, or paper, it is an indispensable luxury for the nobles of all countries, with a huge gap.

Even so, Zhao Jia still deliberately limited his export share in order to maintain his price advantage.

It can be expected that under this business model, businessmen who can get a fixed sales share will definitely make a fortune.

Since it was profitable, the great merchants from various countries were tied to Zhao Jia's chariot.

They will never sit idly by and watch the government where Zhao Jia is located.

If they continue to borrow money from these big merchants, they will certainly feel a little dissatisfied, but they will continue to support Shenqi's land.

Li Si thought for a while, and finally shook his head and said, "After that being said, if this continues, businessmen will find that the money they earn is far less than the money they borrowed to the government. This lending operation model will always collapse."

He said earnestly: "Your Majesty develops the heart of Shen Qi's land, Li Si naturally knows that everything should be done within his ability and take every step forward."

"The most important thing at the moment is to develop Shenqi's land itself, use taxes to strengthen oneself, and rely on external things and tricks to achieve success, which is not a long-term solution."

To put it bluntly, Li Si's words are: if you take too big steps, you can easily get rid of them. You should be more at ease. You have to rely on yourself and don't do evil ways.

When Zhao Jia heard this, he smiled and shook his head.

Although Li Si has the talent of a prime minister, his vision is still limited by the times and he has no idea what Zhao Jia is doing.

The policy Zhao Jia is using now is deficit finance.

Although the deficit fiscal and fiscal deficits are different in order, the meanings are very different.

The latter simply means that state expenditure is greater than revenue, resulting in negative growth in the government's fiscal fiscal system, which is the so-called fiscal deficit.

Deficit finance is a concept of economic development.

From 1929 to 1933 AD, a global economic crisis occurred, and the income of people in many countries decreased significantly. Unemployment and economic sluggishness made all countries difficult.

In order to explain and rescue the crisis, deficit budget theories emerge one after another.

Among them, the theories of British economist Keynes and American economist Hansen are the most representative.

They believe that fiscal balance of income and expenditure is not the principle of national financial management, and the amount of debt is not a measure of a country's fiscal stability.

The reason why the capitalist economy has fallen into long-term depression and crisis is that it lacks effective demand.

In order to promote employment and eliminate crises, the state should actively conduct economic intervention, adopt the method of expanding national budget expenditure, hold public works, increase government investment, increase military orders, pay export subsidies, etc.

In the implementation of these policies, huge deficits will inevitably arise, but they can stimulate total social demand, increase employment opportunities, and then increase national income, alleviate or eliminate economic crises.

After World War II, many Western countries used this policy, which allowed the economies of various countries to recover quickly.

Although in the long run, this economic concept has great flaws and cannot fundamentally solve the problem, it can greatly stimulate national domestic demand and allow the economy to flourish.

Zhao Jia knew that if Shenqi wanted to imitate the expansion of capitalism, it would have to make the domestic economy flourish and then become aggressive to the outside world.

Unfortunately, the low income of the people and the underdeveloped business seriously restrict the expansion of capital.

In order to solve this problem, the most effective solution is to increase national income by paying the bill by the government, and then use this as a breakthrough to stimulate domestic demand and promote the vigorous development of the economy in Shenqi.

Red finance is exactly the governance philosophy brought out by Zhao Jia.

Of course, it is not that easy to support the development of the entire Shenqi land by relying solely on borrowing from major merchants.

Such things can only be emergency response, not long-term solutions.

As for how to make money, Zhao Jia had already thought about it.

The high housing prices in later generations and the policies of shantytown renovation in various places have caused many young people to take away their parents' lifelong savings in order to buy a house.

Even so, most families still have to borrow from banks.

A house not only earns the savings of the elders for the first half of their lives, but also allows young people to live in the shadow of paying off their mortgages for the rest of their lives.

It is no exaggeration to say that real estate merchants have used a house to earn the income and savings of two generations of ordinary families. Through this non-violent means of exploitation, the economic development of various places has been greatly promoted in a short period of time.

Zhao Jia can learn from this kind of governance model.
Chapter completed!