Another short chapter. Sorry but it’s been a busy weekend. Part 8 of Vol 1 will start next release on Tuesday!
“As planned, the economy is deteriorating. It’s about time to take measures to promote the economy …”
“It’s still early. If it’s as per this document, leave it as it is for the whole of spring, and restore the tax to its original level at the beginning of summer. After that, monitor for a while.”
Then the Minister of Finance left the Emperor’s office.
In turn, Governor Count Hans Kirchhoff entered the office.
“Your Majesty, I have something to report … Oh, you were talking about economic trends.”
Hans looked at the material on the desk and commented.
Rupert sighed loudly and replied.
“Leon is by no means incompetent, but … as the Minister of Finance, he always wants the economy to be in good shape …”
“Well, that’s what every Imperial subject wishes for.”
“That is not possible in reality. If the economy overheats, it can burst in an instant … once it bursts, it cannot be recovered by ordinary means.”
Rupert shook his head many times.
“It’s all because of that great war.”
Hans pointed out the war between the Union and the Kingdom that took place ten years ago.
“Because of that war, we exported products that could no longer be made by the Union from our empire. The economy in the Empire improved too much.”
“The production capacity of the other side, which was reduced by the war, recovered shortly after the war. It was the same for both the Union and the Kingdom. Instead, the production capacity of the Empire became too much. Sigh … don’t make trouble for other countries if you want to go to war.”
Hans had no choice but to laugh at Rupert’s unreasonable complaints.
“The heartache I go through for having to raise taxes to cool the overheated economy … no one would understand.”
This time Rupert said with a bitter smile.
“Matters regarding the national economy are too difficult to understand for your subjects.”
Hans nodded slightly as he said.
“I wish I could maintain a booming economy at all times, but that’s not possible.”
“But I heard that the tax increase has increased tax revenue to some extent?”
“Yeah. But after three years, the tax revenue will be worse than before the tax increase. In the first place, the tax increase was not done to increase the tax revenue. The tax increase was to cool the overheated economy. And when the economy has cooled down enough, we will cut taxes and carry out public projects so that the economy will be booming again. That is the national economy.”
Rupert sighed deeply and continued.
“Of course, there are some things we have to do while the economy is bad. Until then, we don’t want the economy to recover.”
“Is the economy so easy to control?”
“Of course. This is a technique that has been established hundreds of years ago. Even if you don’t know the technique, anyone with decent thinking ability can understand it. If there is a country where the economy never recovers …”
“That means that they are deliberately in a recession, for those who are better off.”
“There are such people …?”
In Hans’s mind, he couldn’t think of anybody who would be better off in a recession.
“Hmm? Hans is a little slow sometimes … Look, there are people working for the country in that area.”
“Yes, those officials, including the bureaucrats. Even if the economy is booming, their salaries will only rise slightly? But the income of the townspeople, with merchants in the lead, will see large increases. The people’s income will increase while the official’s salaries remain the same … that means they will be relatively poorer. If so, wouldn’t they not want the economy to do well?”
“But … they are working selflessly for the country …”
“It’s a flaw in the system.”
Rupert commented and drank the last bit of coffee left.
“So, Hans, did you get any reports?”
“Yes. There is new information about the Water-Attribute Magician of the Kingdom, which we talked about the other day …”