Chapter 6826 Carrying It Alone

And the people in the Taicang Continent area have a harder life. In order to ease inflation, the Phoenix Holy Land can only raise interest rates on the Taicang Continent, suck blood, ease its own inflation, and harvest the economy of the Taicang Continent.

So Brother Yu has been bitter in these years. The Honghuang Alliance is also fighting everywhere, and others have to unite to fight him from time to time, economic sanctions, and military strikes.

He has to maintain the funds of Xiang Chen and Mu Feng, who are making drastic moves outside, and maintain the economy of the Honghuang Alliance from collapsing. It is painstaking to avoid excessive inflation.

Fortunately, the system within the Honghuang Alliance is huge, and the economy between the large and small universes under its command has formed a good internal cycle in the development of these years. If you impose sanctions from the outside, at most the export trade will make less money, and the prices of ordinary people will also be affected, but it will not be a problem of food and clothing.

This so-called economic cycle can also be described simply and clearly.

Money houses, markets, people, and alliance officials are four in one.

The money earned by the people is partly deposited in the bank, and partly used for consumption. Then the merchants in the market economy can make money, export goods to the people, and provide food, clothing, housing and transportation for the people's daily life.

The bank also has money to lend to entrepreneurs and invest in construction.

The merchants make money and have money to pay taxes. The alliance government has enough tax revenue to support the army, develop technology to strengthen the army, and protect the people from foreign invasion. The excess money can be used to invest in social welfare, people's pension, medical care, and infrastructure.

This forms an economic cycle, that is, the people make money, so they have money to deposit in the bank and spend money. Only with consumption can the market economy grow.

The restaurant can only make money and survive when there are customers to eat, and can only pay taxes. The clothing store can only survive when there are people buying clothes, and can continue to provide clothes that the people need.

Only with taxes can the alliance officials have money to support the army, invest in construction, and improve social welfare.

This is a whole cycle.

But when war comes, everyone cuts off their trade with each other, the economy, military expenses increase, tax pressure increases, and the alliance's treasury begins to be empty, which will form a series of economic collapses.

Suppose the alliance has no money, and starts to absorb a lot from taxes and people. The original tax of 100 yuan has soared to 1,000 yuan, and the pressure falls on merchants and people.

Merchants pay more taxes, and the money they originally earned begins to decrease, so they start to raise prices. Noodles that cost 10 yuan become 15 yuan, and clothes that cost 100 yuan become 200 yuan.

The people's money can buy less goods, and wages cannot be raised. Naturally, the living standard is poor. Because the prices are high, people dare not spend money, and the market economy begins to sluggish, which will form a vicious cycle and eventually the economy will collapse.

This is the bad effect of inflation.

Money is only money when it can be used, when the market is alive, when it can buy all kinds of necessary materials, and when it can bring enjoyment to oneself, otherwise it is just a piece of waste paper.

This is also the reason why all forces encourage people to consume. If you don't spend it and I don't spend it, it will stay in your hands. Restaurants will close down if no one eats, clothing stores will close down if no one consumes, and the market economy will begin to collapse, and a series of problems will come.

However, it is also necessary for the alliance government to maintain prices at a normal level to avoid excessive inflation so that people dare to spend money. Otherwise, when a monthly salary of 3,000 yuan costs 30 yuan to buy an apple, how many people dare to go to a fruit store?

Assuming that the alliance prints money crazily to alleviate this problem, the purchasing power of the alliance's currency will inevitably be impacted and the currency will depreciate.

When an apple costs 500,000 yuan, the money that countless people have saved with great effort is only enough to buy an apple, and the consequences are unimaginable.

When the people can't make a living, it is the beginning of internal disintegration and the beginning of resistance.

To alleviate this situation, either open up trade, get cheap goods from other countries through trade, reduce the cost of prices, and exchange what they have, or launch a war against foreign countries.

Rely on war to plunder the assets of the people of other forces, enslave other forces, and suck blood from others to alleviate inflation within their own forces.

So Luo Yu's suffering, Luo Yu's pressure is very great. Although he did not charge on the front line, he stabilized Mu Feng and Xiang Chen's courage to charge in the rear!

However, when the world is unified, these problems will naturally be solved. Economic routes will be opened up in various places. The places that were rich in apples in the hostile areas were not given to the hostile forces before. The forces will unify and open trade, and local apples can be safely transported to places where there are no apples.

The people in the apple-rich areas have money. There are no places to eat apples. In the past, an apple cost a sky-high price, but now you can buy apples at a low price. Everyone dares to consume, and the market will get better and better, forming a good economic cycle.

The most typical situation is that when watermelons are in season, pandas eat a watermelon. Watermelons are at most one or two yuan per catty, and a watermelon is more than ten or twenty yuan. The surrounding dogs eat watermelons for dozens or hundreds of yuan. The watermelon rinds that pandas feed pigs can be regarded as treasures by them, because there is no land to grow in his broken little place.

If he can recognize the right father, trade between each other can be opened up, and the cheap watermelons of pandas can be transported there, even if there is more transportation cost, but in the case of large quantities, their prices will naturally drop a lot.

When the Honghuang Alliance takes a place, the first thing is to immediately open up the economy and trade restrictions between each other, so as to ease the economic difficulties and inflation of both sides.

However, this approach does not produce immediate results, but is better in terms of stable and long-term sustainable development

However, the approach of the Phoenix Holy Land and other forces is to directly suck the blood of the defeated regions, raise interest rates, and plunder their resources, which can quickly and violently restore the local economy and suppress inflation quickly.

The disadvantage is that they don’t care about the life or death of the defeated regions, but just treat the defeated regions as leeks to be harvested.

The development direction of other forces outside the Honghuang Alliance is basically the same as that of the Phoenix Holy Land, sucking the blood of the world to enrich themselves.

Only the Honghuang Alliance is willing to take a slow-acting, but sustainable development approach that benefits you, me, and everyone.

Other forces are not unaware of the development of the Honghuang Alliance, but as newly revived ancient forces, they do not have the economic stability experience of the Honghuang Alliance for so many years to slowly realize it.

When everyone is involved, they use the fastest way to each other.

This is also one of the reasons why the leaders of the Dongsu Empire, Cang Lei, Kunlun, and other forces can quickly surrender and surrender after they can overcome their inner reluctance after being defeated.

Because they know that they have only lost the opportunity to become the master of the world, but the imperial forces under their command will not end up being sucked blood and used as leeks.

Xue Lingxiao is not a love-minded person. She also knows that only the doctrine and development mode advocated by the Honghuang Alliance can bring real prosperity and long-term stability to this world.

So she decided to be the one who stood up, even if she would be cursed!

She knew that she would inevitably become a shameful scum in the eyes of countless tribesmen. Perhaps countless years later, people will gradually understand her, but not now.