NOVPUBThe economic crisis had even greater repercussions than Franz had estimated. As a result of the butterfly effect, the global industrial output was now significantly higher than in the same period of history, yet the market had not expanded by much.
After the outbreak of the economic crisis, all these hidden dangers had become exposed. By the end of 1876, the economic crisis had crossed oceans and spread to the American Continent.
The first to be affected were not the capitalists in the North but the planters in the South.
The decline in textile production was not unique to Austria, as it was the same throughout Europe, leading directly to a decreased demand for cotton. This resulted in the first large-scale stagnation in the sales of Southern cotton.
What seemed like an ordinary event had far-reaching implications. Calls emerged within the United States of America for the development of their own cotton textile industry, and some people had already started taking action.
Planters, eager to secure greater profits, were no longer content with being mere suppliers of raw materials and began reaching into downstream industries.
Upon receiving this intelligence, Franz simply laughed it off, as the industrial development of the United States mattered little to Austria. In some respects, it was even positive.
It meant that the power disparity between the North and South would gradually diminish. It should be noted that in recent years, in order to balance the power between the North and South, European countries had tacitly been restricting immigration to the North.
Even with such biased interventions, it only managed to maintain the balance, with the Northern government still holding a clear advantage.
If it were not for the deterrence of England, France, and Austria preventing the capitalists in the North from rash actions, a second Civil War might have already started.
From Austria’s perspective, it was to their advantage for the Southern Government to have a certain level of industrial strength to counterbalance the North, rather than relying solely on a biased support from European countries.
Should a day come when Europe was embroiled in turmoil and could no longer pay attention to the American Continent, the Southern Government would at least need to have the capability to fight.
Franz was not worried about the military’s fighting ability; facts had proven that the capitalists in the North could not defeat the planters in the South. However, war was now a contest of industry and organizational capacity.
"Industry" was a prerequisite; without adequate industry, it would be impossible to guarantee the supply of weapons and ammunition, and there would be no talking about organizational capabilities.
Of course, every advantage has its disadvantage; after the Southern Government developed its industry, it would inevitably impact the international market, adding a new competitor.
However, the first to feel the brunt would be the British, as they dominated the cotton textile industry.
The Vienna Government had bet on the second industrial revolution; core industries were transitioning to emerging industries, where they had no fear of competition.
Not to mention the Americans, even England and France were lagging behind in this area. It was not technology they lacked, but rather, they were behind in talent cultivation.
Where Austria could implement new technologies into industrial production within months, it would take England and France two to three years of preparation.
In Austria, one could randomly pick a few people off the streets and they would have the potential to be trained as engineers. Such proportions were much lower in England and France.
The United States of America was even more out of the question as their educational system was even more backward. The most suitable path of development for them now was to copy the various countries of Europe.
First by relying on pirating to ramp up the quantity of their industries, and then as they reached a certain scale, incremental changes would lead to qualitative transformations, gradually embarking on the path of independent innovation.
This was the same path Austria had initially taken, but they caught the express train of the second industrial revolution, saving a great deal of time.
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"Immigration" was a hot topic in 1876, with the government vigorously promoting the benefits of immigration, and the high salaries on the African Continent were being exposed.
Inside a Vienna grocery store, the owner, Lars, was indoctrinating his employees.
"The African Continent is not as wonderful as you think – dangerous insects and beasts abound, and there are savage and brutal cannibal tribes. You could end up on a barbecue spit if you’re not careful.
Do not be fooled by the rosy picture portrayed in the newspapers; they are only trying to cheat you into going. If it were really that easy to become wealthy, I would have immigrated already.
...
After a lengthy discourse, many lost their enthusiasm for immigrating. Everyone was aware that the African Continent might not be as terrible as the boss described, but it certainly wasn’t wonderful either.
Even in newspapers, no one claimed that the African Continent was wonderful anymore. The emphasis was placed on "high wages" and "opportunities," downplaying the "risks."
To this day, the mortality rate on the African Continent remained higher than in the homeland. Even with the significantly increased mortality rate in the local sweatshops, they still couldn’t compare to the lethality of diseases.
These statistics were no secret; they were equally reported in the newspapers. To reduce the mortality rate, the government even published "The African Survival Handbook," which recorded precautions to take in daily life.
All of this proved that the African Continent was no paradise, and to become wealthy, one must first survive.
Seeing everyone waver, Lars gave a satisfied nod.
Vienna was not an industrial city and was less impacted by the economic crisis, except for some effects on the financial industry, other industries had hardly changed, and the grocery business was still passable.
Unlike before, where wages could be cut during an economic crisis, the first thing Lars had to consider now was how to retain his staff.
Apparently unskilled, the role of a grocery store clerk was not something just anyone could do.
First and foremost, a good memory was required—to memorize the location of products so customers could be served in the shortest time possible.
Secondly, some level of education was necessary to keep the accounts straight.
Finally, a pair of sharp eyes were essential—to catch thieves in an age without surveillance cameras.
Those with talent might be up to the job in just a few days; those without could still be causing trouble after several years of training.
Most clerk positions were for life, mainly because of the risks in replacing staff. If a replacement turned out to be incompetent or dishonest, the loss to the employer could be substantial.
Just as Lars was feeling proud of his eloquence, a familiar voice spoke up.
"Mr. Lars, I have already signed up for the immigration."
Lars: "Don’t worry, Rehn, you can still withdraw after signing up. Immigration is entirely voluntary; no one will force you."
After a moment of silence, Rehn, looking down, said, "I’m sorry, Mr. Lars. Thank you for your kindness, but I still want to go out and try my luck."
Lars was furious but managed to restrain his anger to maintain his gentlemanly demeanor in front of everyone: "You had better think carefully. Once you take this step, it will be hard to turn back." 𝓃𝓸𝓋𝓅𝓾𝒷.𝒸ℴ𝓂
Rehn kept his head down and seemed unable to respond.
Seeing Rehn’s demeanor, Lars knew he had made up his mind. He sighed and, pretending to be magnanimous, said, "Well, since you’ve made up your mind, go and try your luck! If things don’t work out, you can come back. This is your second home. May God bless you!"
Watching everyone’s touched expressions, Lars felt his inner rage subside. He might have lost a Rehn, but he had won over people’s hearts.
Unlike the factories that could force workers to toil under the whip, grocery stores couldn’t be managed that way. Losing the goodwill of the staff could lead to heavy losses for any storekeeper.
There were countless examples of this, and Lars had learned from the failures of others before gradually expanding his business.
Now, with five grocery stores in Vienna running smoothly, his success was due to his ability to put on a show. It was the most cost-effective way to win over people’s hearts.
The grocery was just a minor episode; not many people left Vienna to emigrate. The most emigration came from the industrially advanced Bohemian region, followed by Lombardy, Veneto, Bavaria, and other areas.
Now, the mainstream emigrants were the unemployed workers. Affected by the unemployment wave, most people, unable to find new jobs and having lost their incomes, had no choice but to strike out elsewhere.
The departure of unemployed workers did not draw much attention. To many, it was preferable for these people to disappear entirely.
With each economic downturn, unemployed workers were the most unstable factor; their absence clearly improved social order.
However, for capitalists, it was quite different. Seeing a large number of emigrants leave their homeland, many capitalists worried. If everyone left, where would they find cheap labor?
They had been prepared to use the economic crisis to suppress the recent wage increases, but now they only dared to ponder it.
Fearing that pushing too hard might empty an entire factory, they tread carefully. There were examples of this published in newspapers.
For instance, the Bavarian factory Deserrlandir Mechanics, due to unresolved labor disputes, ended up losing workers to resignation and emigration.
New workers, lacking the necessary skills, produced too many defective products, resulting in a loss of market competitiveness and the factory’s eventual closure.
Suicidal moves like these were reported frequently in the newspapers. There were even cases where the promise of improved treatment went unfulfilled, leading to further strikes by workers.
While negative impacts existed, positive ones did as well. Influenced by wage increases, the domestic market, which should have contracted during the economic crisis, instead experienced growth.
Although the population had decreased somewhat, the purchasing power of those who remained had increased. The theory of nurturing markets in economics, appearing for the first time in Austria, played no small part in this development.
By the end of 1876, besides a few industries heavily dependent on exports, most businesses focusing on the domestic market had begun to recover from the crisis.
