King-Chapter 1413 - 268: Three Bankruptcy Strategies vs Delaying Strategy_2
Chapter 1413: Chapter 268: Three Bankruptcy Strategies vs Delaying Strategy_2
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After a brief exchange of pleasantries, Count Francis swiftly steered the conversation towards the three disastrous policies from the Ministry of Finance. Hudson, who initially planned to remain neutral, realized he couldn’t continue avoiding the topic.
"Your Excellency the Count, to be frank, none of these three measures are practical.
Perhaps you could travel across various regions to observe the true conditions among the people.
In recent years, while the Kingdom has achieved consistent victories in foreign wars, greatly elevating our international status,
the cost of these victories has driven the Kingdom’s finances to the brink of bankruptcy, while industries across the land have been left in desolation.
This is reflected even in commercial tax revenues. The sharp decline in fiscal income from several major cities directly governed by the government is the strongest evidence.
Against such a backdrop, whether it’s government bankruptcy, increased taxation, or issuing paper money, any of these would only trigger a greater crisis!"
Since Hudson had decided to make his stance clear, he laid it bare. Whether his position aligned with the Ministry of Finance’s expectations wasn’t his concern.
As for solutions, there simply weren’t any. The fiscal woes of the Alpha Kingdom were already deeply entrenched, making it impossible to address through a few isolated policies.
To truly escape the financial crisis, the only way forward was to create new revenue streams—and these should absolutely not rely on raising taxes!
In Hudson’s view, the best solution currently, and indeed the only root cure, was reform!
Despite being a major power on the Continent, the Kingdom’s economy significantly lagged behind that of the Frank Empire and the Iberia Kingdom. The greatest issue was the low proportion of free citizens.
Across the entire realm, the land was littered with serfs—how could one invigorate an economy under such circumstances?
Even neighboring Moxi Duchy, whose current economic situation was much better than the Kingdom’s, owed much of its success to the influx of free citizens from countries across the Northern Continent, stimulating economic growth. ƒree𝑤ebnσvel-com
Whether they engaged in artisanal manufacturing or farming in the countryside, the efficiency of wealth creation by free citizens far surpassed that of serfs.
Except for newly developed regions in the Near East, which required significant upfront investment and bore high potential risks unsuitable for free citizens, the mature areas of the Kingdom were already equipped to implement family-based production systems.
However, meeting the prerequisites didn’t mean implementation was feasible.
If one were to attempt emancipating the serfs, traditional noble lords wouldn’t support it—and neither would the serfs being liberated.
During the Feudal Era, commoners’ lives were fragile as grass, easily destroyed by minor disasters or misfortunes.
The stability of the serf system stemmed not just from ignorance fostered by educational manipulation but also from serfs’ firsthand familiarity with the dire plight of the lower classes, which made them afraid to take that leap.
In densely populated regions with abundant labor forces, serfs wishing to become free citizens could directly redeem themselves, as noble lords typically wouldn’t intervene.
Every few years, some serfs would indeed take this step, only to return miserably, begging noble lords for food in front of other serfs.
Even if such experiences didn’t occur naturally, cunning noble lords might intentionally stage negative examples for demonstration purposes.
"Rise above your station"?
In a world of rigid social hierarchies, where do ordinary people find opportunities? Even risking their lives, they wouldn’t outmatch the Knight Masters!
And the nobles’ world wasn’t tranquil, either. Bandits, outlaws, and thieves—these figures were abundant in every feudal era.
To travel alone, making it safely two hundred miles from one’s hometown was a miracle blessed by the Lord of the Dawn.
The notion of turning serfs into tenant farmers remained mere fantasy. Even with no opposition from noble lords, destitute serfs were ill-equipped to handle it.
Currently, all production resources belonged to the noble lords. Profits and losses were borne by them, ensuring serfs, even in years of famine, could scrape a living.
Once the system shifted to tenant contracts, higher potential earnings were uncertain, but no one would shoulder their risks.
Should any able-bodied family members encounter misfortune under the tenant system, the entire family would face ruin. Unlike the current setup, where even amid accidents, dependents were cared for by noble lords.
Even with reforms, tenant farmers might only enjoy better living conditions briefly. Over time, escalating land rents would continuously exploit their vulnerabilities.
The ultimate outcome would see productivity enhanced, creating more wealth for society, while leaving the common people living even worse off.
They’d go from merely being destitute to being both impoverished and burdened. Starving and unable to travel more than one hundred miles from home—what use is such "freedom"?
Aware of these intrinsic dynamics, Hudson understandably refrained from advocating reforms that offended everyone.
If reform responsibilities genuinely fell upon him, his approach would be directly redistributing land to the lower classes while legally prohibiting any trade involving it.
If the earlier "reforms" would tarnish one’s name but retain hope for success, then this latter approach would put oneself straight under the guillotine.
"Marshal, everyone understands the inherent risks, but the Kingdom Government now has no choice!
Unless there is a better approach, one of these three perilous paths must be taken!
Perhaps you may not realize, but given the Kingdom’s current financial state, relying on new loans to repay old debts increases our total debt by three percentage points each year.
Should unforeseen events arise—such as large-scale disasters or wars—the Kingdom’s debt growth rate would sharply accelerate.
If we don’t resolve this problem now, the longer we delay, the harder it will be to fix!"
Count Francis spread his hands as he spoke.
It was apparent that he was an accountable Minister of Finance. He wasn’t looking to equivocate or stall, leaving the trouble for his successor to deal with.
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