Holy Roman Empire

Chapter 459: Adapting Methods to Local Circumstances

Looking at the white-haired old Prime Minister, Franz felt a bit hesitant and asked himself, “Is this really the right thing to do?”

He quickly dismissed this thought. Politics did not allow for indecisiveness. Besides, Prime Minister Felix still seemed very energetic and handled state affairs with ease.

Franz, who was a sentimental person, disliked frequent changes in personnel. Except for those who left early due to health reasons, the remaining cabinet members had all served for over twenty years.

The stability at the top ensured the continuity of policies to the greatest extent. Austria’s rapid development over the years was largely due to their contributions.

As for worries about ministers becoming too powerful and threatening the throne, only mediocre rulers needed to concern themselves with that. Franz had no such concerns.

Handled properly, the issue of “ministers overshadowing the ruler” could be turned into a tale of a “wise ruler and virtuous ministers.” Most of the time, famous ministers enhanced the reputation of famous rulers.

If they guide public opinion a little, the achievements of the ministers could be seen as the result of the emperor’s ability to recognize and employ talent. There was no need to compete for credit. Only those who were not legitimately in power needed to worry constantly.

In this regard, Western emperors are much happier, as they don’t have to worry every day about their subordinates growing too powerful and rebelling. The concept of rule by law has been deeply ingrained in people’s minds, and nowadays lineage is what matters; it’s no longer a world where one questions if a noble birth is necessary for becoming a king or general.

Of course, revolutionaries were an exception; they were professional rebels and couldn’t be generalized.

The documents had already been passed on to the cabinet members. Over the years, Franz had developed a tacit understanding with them: whatever the emperor wanted to do, the cabinet would take the lead in implementing it.

Those with doubts always secretly discussed matters in the palace first, and only after reaching a consensus would they bring it up in the government. The cabinet would bear the responsibility for any issues, and Franz would handle the aftermath.

After reviewing the materials, Prime Minister Felix opposed the plan, saying, “Your Majesty, encouraging people to have children is not an issue, but we must consider the practical situation.

Based on the current average income of our citizens, theoretically, a couple can support five or six children without much problem. However, in reality, it is quite challenging for some people.

Especially for the working class, once they have children, it becomes very difficult for both parents to work, reducing the household income and greatly increasing the financial pressure.

Currently, the areas with declining birth rates are all rapidly industrializing cities. Due to financial pressure, many working-class families are afraid to have children.

To increase the birth rate, we must address this issue first. Otherwise, as the number of workers increases over time, it will become increasingly difficult to manage.”

At present, the working class in Austria is the poorest. Although their income might be comparable to that of farmers, their standard of living was much lower.

After all, housing and daily living expenses consumed a large portion of their wealth.

In contrast, farmers lived more comfortably. With the opening up of the colonies, the domestic land issue was completely resolved, significantly increasing the per capita land area and their income accordingly.

Most families had already repaid their land redemption payments ahead of schedule, making this the most prosperous period for farmers. However, Franz knew that these good times wouldn’t last forever.

With the development of productivity, the widening gap between agriculture and industry will only grow larger, quickly offsetting these advantages.

Currently, industrial products are scarce, and people’s demands are low. The income from the land is sufficient for daily expenses, but as people’s needs increase, this money will no longer be enough.

Increasing the income from the land is very difficult. In fact, relative to the income from the land, it is on a continuous decline.

Just look at the hard-working Russian government in Russia. In a few years, the Russians will return to the grain market, bringing a large amount of grain that will impact the market.

Changes in supply and demand will directly affect the price of grain on the international market, which in turn will affect the income of Austrian farmers.

Franz had always been preparing for this. Increasing internal consumption is the most effective method, and the policy of encouraging people to have children is the most favorable measure. With a population increase, the consumption of grain will naturally increase as well.

Franz directly asked, “Prime Minister, what plan do you have?”

Knowing Prime Minister Felix well, Franz understood that if Felix brought up a problem, he would have a solution ready.

Prime Minister Felix replied, “Your Majesty, actually solving this problem is not difficult, but it will place some financial pressure on the treasury.

Previously, we had already enacted related laws, such as: legally mandating paid maternity leave and prohibiting dismissals, but these measures are just a drop in the bucket.

Once the child is born, they still need care. During this period, women cannot work normally, and once the paid leave is exhausted, they are usually put on unpaid leave by their employers.

It’s manageable if the grandparents can help with childcare, but this is rare. Most couples have to take care of the children themselves.

Given this situation, it would be better for the wife to stay home and care for the children. The government could provide a subsidy to alleviate their financial pressure.”

This was very German. Even in later times, Germany encouraged wives to stay at home and take care of the children. Surprisingly, this kind of thinking existed even in this era.

Such a perspective isn’t forward-thinking but rather a realistic necessity. Infants require constant care; otherwise, if you work overtime, the little ones might starve. For those who are enthusiastic about having children, it’s practically equivalent to being unemployed.

Franz had no objections to providing subsidies—after all, the wool comes from the sheep’s back. Since companies are already covering paid maternity leave, it could just as well be handled through taxation.

They could easily eliminate paid maternity leave and have the government directly issue maternity subsidies. The government could then cover any shortfall in tax revenue.

As for the issue of the reduced labor force, Franz wasn’t worried at all. The impact was negligible. This era still predominantly employed male workers, and the number of female workers in Austria didn’t exceed two million.

It’s not like all these women would be having children at the same time, right? Even if they were, Franz wouldn’t mind. The subsidy wasn’t long-term, only for a limited period.

After some thought, Franz said, “There’s no problem with issuing subsidies. The cabinet should quickly decide on the standards and duration for these subsidies.”

Franz had originally planned to distribute flour, as it was economical and practical. He intended to provide a monthly subsidy of twenty kilograms for five years, but he took back the words just as he was about to say them.

From a cost perspective, directly providing flour was indeed the cheapest option. As a major grain-producing country, Austria’s domestic grain prices were always low.

If the government supplied flour uniformly, subsidizing twenty kilograms per person per month, the cost could be controlled within 25 schillings, and the annual subsidy per person wouldn’t exceed three guilders.

The purchasing power of the guilder is indeed that strong, with one guilder equivalent to about 3.66 grams of gold. It would be a problem if its purchasing power weren’t strong. This is even without the invention of fertilizers; otherwise, grain prices would be even lower.

Based on these figures, the five-year childcare subsidy would only amount to 15 guilders. Spending 15 guilders to increase the population by one person is a very cost-effective investment.

However, things aren’t that simple. Implementing this could cause a series of impacts. For instance, the price of flour in the market would be affected.

Twenty kilograms of flour, combined with other ingredients to make bread, would be enough to feed a couple for a month. People don’t just eat bread, of course.

Since it’s sufficient, there would be no need to purchase more. The business of selling flour would decrease, and so would the business of selling bread.

Although this might seem trivial, in a market economy, even small changes can have far-reaching effects, impacting other industries as well. Franz wasn’t sure what the final consequences would be.

Disrupting the economic cycle rashly would be more harmful than beneficial for a country. Initially intended to save money, this approach might end up reducing financial revenue alongside expenditures.

This calculation must be done carefully, and Franz certainly wouldn’t make a hasty decision. If it leads to a reduction in tax revenue that exceeds the savings, wouldn’t that be a significant loss?

Finance Minister Karl suggested, “Your Majesty, it would be best for local governments to formulate specific policies, and we should simply provide guidance.

The situations in different regions vary, so a uniform standard isn’t feasible. For example, we shouldn’t offer housing incentives in Vienna, or the city’s population will explode in just a few years.”

Franz quickly realized that a one-size-fits-all approach wouldn’t work. These measures could only serve as references, as the conditions in the colonies couldn’t be matched by many places in the homeland.

Take Vienna, for example. If it were to emulate Neubruck, the biggest issue wouldn’t be an explosion in the city’s population but rather the government going bankrupt.

Unless Franz, as a major landowner, releases unlimited land to suppress housing prices, it would be difficult for the Austrian government to avoid bankruptcy at current prices. With each square meter exceeding 20 guilders, a 40-square-meter property would cost 800 guilders.

Driving down housing prices is unrealistic given Vienna’s unique situation. The city’s reputation as the “city that never sleeps” brings brand value. Unlimited land supply would be nonsense; without matching infrastructure, it would be a disaster.

Other factors, such as urban-rural differences, regional disparities, and income variations, also need consideration. If things go wrong, it would be hard to resolve.

Letting local governments create policies based on their actual situations would work much better. Different regions would have different incentive measures, aligning with their specific conditions.

Since these policies would affect political achievements, officials would be motivated. If they don’t perform well, they can be replaced with those who can. Austria currently doesn’t lack officials.

In this way, the cabinet would transition from being executors to supervisors, thus offloading responsibility. Even if the public was dissatisfied, their complaints would be directed at local governments.

With varying standards across regions, it would be clear that the central government’s intentions were good, and any problems arose from local execution.

It’s foreseeable that wealthier areas would have higher subsidy standards, while poorer areas would have lower ones.

Interestingly, birth rates would inversely correlate with economic status—richer areas would have lower birth rates, while poorer areas would have higher birth rates.

…

While Franz was racking his brains to increase the population, a conference on redrawing European regions was unfolding at the Vienna International Hotel.

Unexpectedly for this low-profile international conference, the foreign ministers of both Britain and France were in attendance. As the host, Austrian Foreign Minister Wessenberg had no choice but to preside over the meeting personally.

With the foreign ministers of the three major powers gathered, the conference’s status was instantly elevated, making the representatives from other countries who came to join the discussion feel quite awkward.

The diplomatic world operates on mutual respect; those of lesser standing often hesitate to speak up. Smaller nations, traditionally less influential in international affairs, see their say diminished even further.

Fortunately, this was just about the division of European regions, which ultimately came down to a matter of nomenclature, at most changing some geographical terms.

Everyone first agreed that geographical terms do not represent legal rights and signed an international convention. As it wouldn’t affect anyone’s actual interests, the conference proceeded very pleasantly.

The host, Wessenberg, was very satisfied and was about to announce the successful conclusion of the conference when a staff member hurriedly approached and whispered in his ear.

Wessenberg’s face, previously full of smiles, suddenly darkened. Troublemakers had arrived. If it weren’t for the presence of so many representatives, he would have erupted on the spot.

The international conference had just determined that the Lombardy and Venetia regions belonged to Germany, and now Italians were protesting outside.

The speed at which the news leaked clearly showed it was premeditated. Especially for such an incident to occur right under Austria’s nose put the Austrian government in a passive position.