Chapter 394, Red Arrow Star Joins
As for the reform of Facheras Samsung, even if it is carried out smoothly according to the plan made by Ossena, the alliance will still suffer continuous losses and it will not be able to break even until five years later.
During this period, the alliance is estimated to invest a total of about 1 billion to 1.5 billion.
However, this is different from maintaining the old system and making a net loss of 200 million every year. The extra money spent by the alliance can be regarded as an investment in the construction and reform of Fache Samsung, and the benefits will be seen in the future. Gu Hang is relatively willing to make such an investment.
As for whether the alliance can withstand a loss of 1.5 billion over five years... if you have this question, you are underestimating the alliance.
As Koroja's reforms have not been fully completed and Wrath of Owl and Black Arrow still need to provide large-scale material support to Fachs, these two core planets of the alliance still have enough capacity to fill the gap left by Fachs' three stars.
This does not include the profits from the Alliance Shipyards.
Moreover, since the Alliance has paid taxes, the Alliance's investment in the Star Army can of course be tax deductible. The Dragon Eagle Legion is here to fight this rebellion war, so of course the Military Affairs Department should pay for it.
To maintain the Dragon Eagle Legion, normal personnel retirement and replenishment, ammunition consumption and equipment loss, stationing and training costs... when you calculate it all, it wouldn't be too much for the Alliance to invest 100 million tax coins a year in this, right?
The Ministry of Military Affairs just pays the tax deduction.
However, the cost of maintaining an army is still very high. The Raging Bear Legion is very expensive, but at least there are not many of them; the Koroja Salvation Army is cheap, but with a number of 300 million, it can't be cheap at all.
Koroja can still withstand the 300 million Salvation Army.
In the future, as Koroja's reforms continue to advance and productivity catches up, the financial pressure on the alliance will be greatly reduced.
Currently, Koroja's annual output value can reach about 20 billion - compared to Fachs Samsung, it has 30 billion more people, but its output value is still not as good. The Alliance is still losing money on Koroja.
However, one-third of Koroja's hives have already pushed forward the reform strategy. In the past year, the Alliance has received 1.1 billion in taxes from unreformed areas, and the profits generated by the centralized production reform in the reformed areas are also 800 million.
This was achieved even though Koroja had suffered a population loss of more than four billion and was still continuously transferring population to the Angry Owl and Black Arrow Stars.
This has already reached the 2 billion in tax revenue that Koroja could generate each year before the war.
Koroja's tax amount is 4 billion, and the remaining 2 billion tax gap from previous years is made up by paying the population.
Gu Hang's request to Koroja is that by the end of the remaining four years of tax exemption, the planet's population will be reduced to less than 30 billion through transfers, and all kinds of output value profits will reach 3 billion.
If this can be achieved, then Koroja can be considered self-sufficient and no longer need subsidies or taxes in the form of population to fulfill the imperial tax.
In the next five years, nearly 6 billion people will continue to move out and settle in Angry Owl Star and Black Arrow Star. Gu Hang hopes that the output value of these two planets plus the shipyard will reach more than 20 billion in five years, and the alliance can reap more than 6 billion in profits. By then, the imperial taxes of these two places will be calculated at a total of 7 billion, and the alliance will still have a surplus of more than 6 billion after only 700 million.
At this point, the Alliance can be considered an extremely powerful political entity in the star field.
It is self-sufficient, has excess profits every year, can produce most of the weapons and equipment needed by the conventional Astra Militarum, maintains a Space Marine Chapter and a Battle Sisterhood, and can produce its own warships.
Although, under the organizational structure of the Planetary Defense Force and the Astra Militarum, they are not allowed to have naval fleets, nor are they allowed to conduct large-scale interstellar trade. If they want to engage in interstellar trade, they need to obtain a merchant license from the Imperial Chamber of Commerce.
However, this rule is not rigid, and many planets have their own ships. It is normal to have some ships, even if you don't have a navy or interstellar trade, but you have some material transportation needs, some escort needs, flexible defense in planetary orbits, and anti-piracy needs within the star system. Isn't it reasonable to have some ships?
Most planets do not have their own starships. In fact, the biggest obstacle is not any regulations of the empire, but the fact that they cannot afford them; even if they can afford them, they cannot maintain them.
But Gu Hang didn't have this worry. He could form an escort team, because the Alliance's ruling area had already spanned multiple star systems, and there was a practical need for this. What if there were interstellar pirates wandering over? As for the price, he could produce it himself, and he had his own shipyard, so the cost of forming it himself was controllable and low.
Even if we take a step back, Gu Hang can also affiliate the alliance's fleet to Gu's Trading Company. On the surface, it is a merchant fleet under Gu's Trading Company, but in fact it is the alliance's naval fleet.
With a complete army and navy, by that time, the alliance could be described as 'rich and powerful' - both rich and powerful.
Not to mention, in the past five years, Gu Hang relied on his position as the head of the star zone to get Feiyi Star. In the previous conversation between Gu Hang and Xu Dechen, it was also mentioned that Xiao Pei Desi had been abandoned by the parliament. Without his brother and backstage support, this guy couldn't control Feiyi Star at all.
Although the population of Feiyi Star is only 8 billion, the shipyard on the planet can build cruisers, which is really mouth-watering.
That was a huge fortune. It was a waste to put it in the hands of little Pedes. Gu Hang didn't think that guy would be able to hold on to it in the future.
Given that idiot's level, there are plenty of ways to get rid of him.
Moreover, this matter needs to be done quickly, as Gu Hang doesn't want to wait too long.
The sooner you get it, the sooner you can get the benefits.
As for how to get it, Gu Hang had some ideas.
Moreover, these ideas have already begun to be implemented.
Gu Hang didn't care about how Xiao Pei Desi would react to this. No matter what that guy thought or did, it would not change the result.
…
While Gu Hang was planning for Feiyi Star, another world in the Tianma Star Region had already started to move.
That is the Red Arrow Star, which is one of the only two planets in the Tianma star region that has not yet joined the alliance.
Red Arrow Planet is an empire world dominated by agriculture, with a total population of about 2 billion people. Many large or small farmers, or agricultural group companies, control the land on the planet. These farmers and agricultural groups form an industry association, which is the highest power structure on the planet.
The association will elect its leader, who will also become the acting planetary governor and authorize the establishment of a planetary government. The government of Red Arrow Star is a very loose organization that only handles public security issues and provides some necessary public services. They will not form an army or collect taxes, and the necessary resources for the operation of the government are also obtained through money from the Agricultural Association.
At the same time, the military construction level of Hongjianxing is also very low. There are only a few million ground forces among 2 billion people, and the heavy equipment is even more shabby. It mainly relies on light infantry.
The imperial tax on Red Arrow Star is determined by discussions among many people in the Agricultural Association. These large agricultural enterprises seize every trade opportunity and use grain to pay an annual imperial tax of 200 million. They also use grain trade to exchange for various industrial products needed by the planet, especially agricultural production machinery.
The development level of Red Arrow Planet is not high, and there is almost no industrial level. But the residents of the planet generally live a good life. They have a high food supply, and although most of it is taken away by agricultural companies and farmers, the remaining part can also provide food and drink for many agricultural workers.
Gu Hang had actually thought about how to capture the Red Arrow Star before, but he found it very difficult.
The people in the agricultural company were all local rich people with no special ambitions. They just stayed in their own small piece of land and farmed. Nothing special had happened on the planet for anyone to intervene.
Although their military strength was very weak and Gu Hang could defeat them with a wave of his hand, they were an imperial world and there was no way to fight them without sufficient reasons.
What's more, the main output of Red Arrow Star is food, and the output is very simple. Gu Hang doesn't seem to have to get it. He just needs to continue trading, let Red Arrow Star buy the agricultural output other than the imperial tax, and dump industrial products at the same time.
Although Gu Hang has a bit of obsessive-compulsive disorder about "map coloring", it has reached this extent now. He really wants to plant the flag of the alliance on all the planets in the entire star region.
Considering practical factors, the Red Arrow Star is really the type that can be plugged in or not.
Gu Hang was right in thinking so, but he did not expect that his rising fame in the star zone, the rapid expansion of the alliance system, and his taking the position of leader of the star zone would have such a huge impact on these local rich people on the Red Arrow Star.
Gu Hang didn't want to bother them and just wanted to do business, but he didn't tell them this, and the local rich men didn't know what Gu Hang was thinking.
Even if they told them, they might not feel at ease.
The envoys from the Red Arrow Star Agricultural Association came to Feiyi Star with an uneasy mentality, met with Governor Gu, and put forward their demands:
We want to join the alliance!
This made Gu Hang laugh.
I haven't done anything yet, and you guys want to join in voluntarily. Is that okay?
However, these local rich people did not join unconditionally.
Before sending out envoys, they conducted some research on the alliance system.
They have one biggest psychological barrier to joining the alliance - the alliance will 'confiscate' almost all means of production and monopolize all output. Whether it is the boss or the workers and farmers below, they will all be assigned a rank and receive benefits according to their rank.
They definitely won't be able to accept this, it would be more painful for them than killing them.
But they are really afraid of death.
Although, in their assessment, it is basically certain that Gu Hang is unlikely to take direct military action against Hongjianxing, but with Gu Hang's current capabilities, there is no need for military action to deal with Hongjianxing.
As long as the trade is cut off, or even if the price negotiations are just harsh, the blow will be fatal to a planet like theirs with a very single output.
So, with worried faces, these local rich people of Red Arrow Star came up with a plan.
They saw that there were also some private enterprises in the alliance system. This was more common on the Wrathful Owl Star. In order to avoid institutional rigidity, the alliance government gave people the opportunity to start their own businesses.
When people see an entrepreneurial opportunity, they can keep their job rank and benefits, and then start a business, and even get some support from the Union government. But on this basis, they have to sign a contract with the government and make performance commitments. Then, they can recruit workers and employees, and the recruited workers and employees also enjoy job rank benefits and allowances, which is equivalent to the government paying them wages.
This is equivalent to opening a new state-owned enterprise.
If the entrepreneurial results are not good, the job level will drop, or even drop sharply, and you may not be able to get the same job when you return; if the results are good, the job level will rise rapidly, and part of the profits from the business will be rewarded to the corresponding entrepreneur - in fact, it is equivalent to income other than tax. In addition, the government will also provide strong support for successful people who want to expand their scale.
However, under the alliance system, the successful cases of such entrepreneurship are basically concentrated in small-scale, non-key industries.
The smallest scale is for a couple to open a breakfast shop; the higher-level ones think there is a business opportunity somewhere and open a store or supermarket, hiring three or five people; the most impressive ones start a transportation company, or think that the current market for clothing design is lagging and start a clothing factory...
These local rich people in Hongjianxing saw opportunities in this policy.
They wanted to join the alliance to avoid being squeezed out and targeted, but they also didn't want to lose their current property, so they came up with this wild idea.
They all obtained job ranks according to the rules of the alliance and the scale of the industries they managed; the farmers and workers under them also all had job ranks and were paid welfare benefits according to the alliance standards. At the same time, they all obtained the status of entrepreneurs and could enjoy the excess profits obtained by their agricultural companies or farms.
They also promised to accept the jurisdiction of the alliance system. Those who perform well will be promoted in rank, and with the support of the alliance, their scale can be expanded and their profits will be higher. Those who perform poorly or who are unlucky enough to encounter natural disasters and are unable to properly deal with them, resulting in reduced production, will bear the risks themselves, and their rank will be demoted, their scale will be reduced, and in the worst case, they will even be shut down and handed over to others to manage.
To put it bluntly, in the past it was market competition that naturally led to these results, but now there is an additional layer of alliance jurisdiction and they are subject to alliance regulation.
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4k
I said I would be on a business trip for a week, I didn't say I would stop updating for a week... It means the updates may not be very stable, but I still want to get full attendance, it's all money!
Then there is the situation during this business trip… I had a sore throat the night before yesterday, but I didn’t think it was a big deal at first. Yesterday, I was exhausted from the flight and the rain. The temperature difference between the two places was huge. I was wearing thick clothes, but after landing, it was over 20 degrees and I was sweating. I quickly took them off, but the wind blew and it was cold again. As a result, I couldn’t stand it at night. I felt dizzy, vomited, and my sore throat worsened. I didn’t finish what I wanted to update last night.
When I woke up today, I had a low-grade fever.
The good news is that I don’t have to work anymore and I’m staying at the hotel. The bad news is that I took some medicine and slept all day, and I feel weak all over. The antipyretic medicine worked for a while, but the fever returned after a while…
Just barely finished this chapter.
Later on, I will try to write as much as I can and strive to maintain full attendance. If I owe more, I will not be able to repay it for the time being...
Continue to sleep...
(End of this chapter)
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