Mediterranean Hegemony Road

Constantine continued: Your Majesty, this is the plan of the Ministry of Communications on the Greek peninsula. In order to connect the Greek peninsula with our mainland as soon as possible, the Ministry of Communications plans to build a railway from Ioannina to Athens.

Including seven branch lines, the total length of the railway is about 2,300 kilometers. It is planned to invest 80 million levs and the construction time is estimated to be 5 years!

Ferdinand nodded and agreed, connecting the railway network of the Greek peninsula and strengthening the control over the Greek peninsula, which is one of Bulgaria's established national policies now.

...

Well, Ferdinand has only left for just over two months, and he left behind such a big mess. It can only be said that the king is not easy to be!

If Ferdinand didn't ask, maybe many things would be directly classified as not important by the bureaucrats underneath. This is also a common problem of bureaucrats all over the world.

Although Bulgaria's current moral level has reached a very high level, Ferdinand never believed in the bureaucrats under him.

Maybe they won't make a big mistake, but it's hard to say whether they will be slack at work. After all, the Bulgarian government really has a lot of things to do!

So many that they don't have time to engage in political struggles! They are human too, if given the chance to be lazy, how could they possibly give up?

As for giving them a vacation? Ferdinand said: This is impossible! In this era, there is no popular saying about taking annual leave. The whole Bulgaria is on a one-off system, and his king is no exception?

And now is not the busiest time, when the world war breaks out, that is really busy!

Anyone who has experienced the first Balkan War knows this. In order to win the Ottoman Empire, Bulgaria put all its strength into the country, and many government officials have not entered the house once in a few months!

Well, except for special circumstances, under normal circumstances, no matter how busy government officials are, they are more relaxed than the workers at the bottom, right?

With a higher income, in principle, there is no overtime except ten hours of work every day!

Oh, and now the Bulgarian government is reforming and preparing to implement an eight-hour work day, but Ferdinand has never agreed!

This is a problem that affects the whole body. If the government changes the working hours, should other industries also be restructured?

Do not suffer from widowhood but suffer from inequity! It is common all over the world. Now no one in Bulgaria has any questions about the ten-hour work system and the one-off system. The most important thing is that everyone, including Ferdinand, implements this set of standards!

Of course, this is what Ferdinand thought to himself! His working hours are freely arranged. If there is no important thing, there is nothing to him at all!

The cabinet government doesn't eat rice. It's enough to ask Ferdinand to make a decision with a lot of questions. If he couldn't handle even trivial matters, Ferdinand would have been replaced long ago!

The most important thing is that the productivity of this era is limited. If the working hours are forced to be reduced, then the capitalists must also reduce the wages of workers.

In order to keep the income, everyone still has to work overtime obediently, so tossing, doesn't it mean that the work is in vain?

Don't mention work efficiency, it's all nonsense. Ferdinand's previous life is in the 21st century, aren't there still so many people working overtime?

Are capitalists all fools,

Don't know that working too long will reduce production efficiency and increase the defective rate?

Why are so many people still working overtime?

The reason is very simple, except for individual precision industries, for most factories, it is completely acceptable for the products to be slightly flawed!

Not to mention in this day and age, the capitalists dare to let their workers work fifteen or six hours a day, which is also considered a comprehensive consideration of various factors, and they do it for the sake of maximizing profits!

What if the working hours were forcibly reduced without reducing wages?

Worse yet, get ready to face the economic crisis!

Productivity in this era is limited. If a worker works ten hours to produce a product worth 100 levs, the cost of raw materials, machinery, and workshops must be deducted to be 45 levs, government taxes of 10 levs, and sales channels of 20 levs. The capitalists took 10 levs, the management cost was 5 levs, and the workers’ wages were 10 levs.

If the working hours are now eight hours, then the value of the products produced is only 80 levs, the cost of raw materials, workshops, and machinery may be 38 levs, and the government tax has also been reduced to 8 levs, and the cost of sales channels may be It is 16 levs, the management cost remains unchanged at 5 levs, and the wages of workers remain unchanged at 10 levs, then only 3 levs are left for the capitalists.

(The production capacity is reduced and the amortization of plant machinery costs will inevitably rise! The law of the market determines that the more products are produced, the lower the unit cost!)

Obviously, this is unacceptable. 10% of the capitalists cannot be all profits. Most people invest part of the money themselves, and then use bank loans to expand production capacity!

Now the interest rate of bank funds in Bulgaria is more than 5%. If the capitalists have a profit of 10%, after deducting the interest on the funds, they will still earn!

If this profit is reduced to 3% or even lower, there is no doubt that the company will not survive!

The cost of capital alone may not be recovered, let alone the expansion of production capacity! It is impossible for all capitalists to invest in full, right?

Even if there is so much money, it is estimated that no one will do that!

For example, the total investment of this project is 1 million lev, you invest 30% of the capital 300,000 lev, borrow 700,000 lev from the bank, and the annual interest rate is 5%.

The profit is calculated as 10% of the total investment, the annual profit is 100,000 lev, the loan repayment is 35,000 lev, the net profit is 65,000 lev, and the return on capital is 21.7%.

This figure can also stimulate the enthusiasm of capitalists for production. If they are allowed to invest 1 million leva in full, then the return on capital will only be 6.5%. What is the return on investment to expand production?

As for the rise in production costs, can it increase in sales prices? Obviously, the consequences are even more serious. Now that international trade accounts for 20% of Bulgaria's industrial production, will it still be competitive if the price increases?

Not to mention the loss of product prices in the international market, it will also cause domestic inflation and cause a chain reaction!

As long as he thinks about the terrible consequences, Ferdinand dare not act rashly!

Either the productive forces have developed to a certain level, or Bulgaria has enough colonial markets to plunder, otherwise it's better not to mess around!

At the beginning of the 20th century, the wealth created by the whole society was limited. No matter how it was distributed, it was impossible to achieve high welfare. Ferdinand would not violate the laws of the market!

...

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