Reincarnated as Nikolai II-Chapter 252: The Time-Traveling Bureaucrat, Bunge: Star Rail (2)

Bluntly speaking, wasn’t that weird ideology only spread in Bunge’s later years?

’Bunge’s ideology changed with the times. In rash youth, Adam Smith’s free trade. During the Russo-Turkish War, protectionism due to military spending burden. And in later years, he advocated nationalism where the state must lead all reforms.’

Not passive reform demanding change from the state according to market and social needs, but direction where the state actively leads reform first.

That’s Bunge’s ideology I know and what bureaucrats agree with.

But only that far.

"Bunge coming up. So you searched the past to find the best possible method. I thought you’d be more creative."

"...It seems this fellow was influenced since he’s been to the Far East."

Bunge passed away many years ago, and the world has transformed dramatically since his time. The political and social landscape he knew has been completely reshaped by industrialization, changing demographics, and evolving power structures.

His advocated ideology, while demonstrating impressive economic efficiency in the Far Eastern context, suffered from serious limitations. Though it might have succeeded within the confined parameters of those regional economies, it would prove woefully inadequate as a comprehensive governing framework for the vast and diverse Russian Empire. The complexities of managing such an enormous territory, with its multitude of ethnic groups, religions, and local traditions, demanded a far more nuanced approach.

Though Kokovtsov tries wrapping his successor’s claims this way and that... well, after all that contemplation coming up with 1880s era Bunge.

It seemed like a somewhat disappointing answer.

"The main line alone exceeds 9,000 km, and including railways connected to this line that’s like the Empire’s spine after double-tracking construction, reaches 15,000 km."

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"So what? Increase railway construction?"

"No. The point to note here is that Chairman Bunge already planned the Trans-Siberian Railway expanding to the Urals before Tsar Alexander III issued the imperial edict."

How could father’s edict not have Bunge’s intentions dissolved in it? Before teaching me, by grandfather’s order Bunge taught father economics, politics, and finance, and he was Finance Minister then.

"What was the Empire’s situation then? It was a time when finances collapsed from war with the Ottoman Empire and constant famines, and the Empire was beyond poor, not even properly forming markets."

"Bunge filled that gap with tax reform. I know that too."

"But looking at the Empire’s economic history, precisely from this railway construction, the Empire began reviving."

While saying this, Stolypin explained how effective Bunge’s policy of rather increasing spending when poor and difficult was, presenting various figures and materials.

’...It’s not wrong. Bunge raised the Empire using finances enough to be called the Empire’s first modified capitalist.’

Though I acknowledge it, it’s just slight agreement, hard to fully concur with the argument.

So what connection does that Bunge have with current economic recession solutions?

"If there must be spending, it should be spending for the nation’s future."

"That’s obvious."

"If implementing public policy, it should spread money to as many people as possible, and just as that railway industry raised equipment industry and coal mining, minerals, steel, construction, even regional economies wherever sections connected, we too must do likewise."

"Just state your main point."

Asked for the conclusion, his tongue grows longer.

Now even Kokovtsov gave up supplementing explanations, perhaps unable to grasp what Stolypin was trying to say.

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While expressionlessly waiting only for Stolypin’s final argument, he spat out his conclusion.

"If Chairman Bunge made railways, I will make roads."

"...Roads?"

"I will make roads to raise the automobile industry and connect this to the new Chief of Staff reorganizing the military, and make logistics connect throughout the Empire to lower logistics costs. Lowering logistics costs means lowering price increases. Cost reduction. Possible to control inflation and prevent deflation."

Roads, roads.

If categorizing, closer to civil engineering than construction industry.

’...Nazi?’

Right. If they raised heavy industry Nazi-style, what’s stopping overcoming the Great Depression Nazi-style.

Road construction, I considered it briefly in passing too...

"25,000 km of sections! The moment it’s announced, markets will shake with expectation, stock prices will soar, and companies will run to banks preparing to jump in eating policy financing. Not a dark and rigid economy, but that dynamic energy will spread throughout the Empire!"

I didn’t think that far.

Now I understand why he expressed it as Bunge’s method.

Because Bunge was a man who thought of building the transcontinental railway even in those desperately poor times.

It’s the same now.

"It would be unprecedented public works in Imperial history, but how would the costs work? Can the Empire really handle such expenditure?"

"We didn’t build the Trans-Siberian Railway with our money. We built it with French money."

"...Then?"

To solve this by my common sense, must draw loans from various countries and become slaves to bonds.

Or just abandon the gold standard and build roads.

This isn’t building roads because cars increased, but planning to first increase roads and then sell cars.

Meaning the government must bear all initial costs outright.

’The plan is too vast. Even if the Imperial government proceeds, this is hard to continue without full domestic and foreign trust.’

No national leader dislikes public works. No leader doesn’t know public works revive the economy.

However, the reason they can’t do public works is because securing those funds is too difficult and if they can’t resolve it afterwards, it catches the ankles of both national leaders and nations.

"You believe bond issuance for that project will be possible even after depression comes? A huge contradiction arises here. The state must release money but ends up absorbing money for these public works funds. Meaning bond fundraising will be difficult, and since these won’t make money due to public works characteristics, it won’t be easy for the state to repay."

"When stocks and assets fall simultaneously, those holding money naturally flock to bonds. Though there will be profit decline from inflation, even that will prioritize stability."

"Hah!"

Arguing they’ll have no choice but to flock here when all investment destinations get totally shattered.

"And though I’m sorry to say this... Your Majesty."

From a position trying to overcome depression, this kind of solution isn’t appealing since stock recovery and asset price normalization will be slower.

However, Stolypin’s demands didn’t end there.

"Ahem, for the project’s credibility and guarantee, just as Tsar Alexander III did, this road construction too must be proclaimed by imperial edict to begin business."

...This bastard?