Chapter 13: Cruel Society

No matter how beautifully Karl paints the picture, the essence remains unchanged: to accelerate industrial development, they are prepared to sacrifice agriculture.

Primitive accumulation of capital is bloody. While expanding markets abroad, there is inevitably internal exploitation.

This is dictated by the era. As someone aspiring to be a legendary emperor, Franz is bound to take such actions. On the surface, the Austrian government has never exploited the peasants.

Only 5% of agricultural tax is levied, which is almost the lowest in Europe at this time.

In reality, besides the agricultural tax, there's also a tithe of ten percent collected in the name of the church.

It can't be more. The Austrian government is dominated by the nobility, and policies must tilt in favor of the ruling class. Getting them to pay tax together is already quite an achievement.

However, for most people, they also have to pay a land redemption fee, which is their biggest burden. Ironically, this is a burden they willingly take on.

The Austrian government didn't force peasants to redeem land, it was all voluntary. The rent from government-held land is only 30%, and after deductions, it's just 15%, showing no intention of severe exploitation.

To redeem the land, one has to pay 20% of the land's income as a redemption fee for forty consecutive years or compensate in cash.

If the government had forced the peasants to pay this land redemption fee, there would have been much resistance. But allowing them to buy the land voluntarily changes the dynamic, and they are grateful to the emperor for the opportunity.

Even with these burdens, it's better than in the serfdom days. They not only have enough to eat but also have a certain amount of disposable property.

Of course, they're also more tired now. When working for the nobility, they took it easy when they could. Now working for themselves, no one slacks off.

Everyone wants to earn more, pay off the redemption fee quickly, and live a better life.

Right, in the eyes of the peasants, owning land means better days ahead.

After Franz took office, many convoluted taxes were simplified or abolished in Austria.

Aside from the 5% agricultural tax, other taxes no longer affect the peasants. Tithes don't count; they are collected by the church and have nothing to do with the great emperor.

Now, the government aims to win over interest groups in various states with low grain prices. In the long run, this increases Austria's market share of agricultural products.

Future Americans played this game of low-price dumping, proving its profitability. Even if they didn't profit from agriculture, they made substantial returns elsewhere.

If not, they would have quit. They are not into charity. Sustaining losses year after year? Who can endure that?

By joining major grain-producing countries to raise grain prices, it's not something the Americans couldn't do. They kept dumping at low prices because there were larger benefits to gain.

On the surface, the Austrian government wholesales grain at a low price, causing losses for local interest groups. But once Austria controls the grain supply of various countries, the situation changes.

Governments, whether willing or not, politically have to lean towards Austria. They don't have a choice.

From the perspective of personal interest, Prime Minister Felix should oppose this policy. But as the Prime Minister of Austria, he can't just consider immediate interests.

Karl's persuasion was successful. Everyone knew Austria's grain production would surge, and domestic consumption wouldn't be enough. If they don't find external markets, it will rot in the warehouses.

Everyone's mindset has been led astray. When such things happen, there isn't just one solution, such as reducing taxes on agricultural links to increase the competitiveness of grain prices, or developing ancillary industries like brewing, developing livestock, and processing grain.

"Prime Minister, these losses will only be for the first few years. Considering the actual situation, we are now lowering our prices by 20% compared to international grain prices to preemptively capture the market. Once we've captured the market, we can slowly raise prices. All the losses we incur now will be recovered in the future. The government also encourages the export of refined products to maximize high value-added products to safeguard everyone's interests," Karl seriously analyzed.

In this business, only the Austrian government dares to act this way. Other grain-exporting countries don't have many state-owned enterprises to control grain export prices.

Capitalist always seeks profit, especially in the low-barrier agricultural industry. Who cares about future profits?

Focus on the present first, or you'll be crushed by competitors before reaching the future.

...

The strategy of "dumping at a low price" was thus set in motion. It's an open strategy; who can resist the temptation when faced with benefits?

Franz merely furrowed his brow, signaling his tacit agreement. Reality is so brutal. Without sufficient benefits, how can one convince others to join the cause?

Fortunately, in this era, not many people emphasized the importance of industry. Under the feudal system, capitalists didn't have much say. Otherwise, the cost Austria would have to bear to establish this economic alliance would be even greater.

...

Making a plan is easy, but implementing it is not that simple. The much-discussed Austrian civil service examination kicked off on December 21, 1848.

To avoid difficulties in oversight due to the vastness of the empire, and to prevent serious cheating, the Austrian government set all the exam venues in Vienna.

The Ministry of Finance was the first to start the exam. It wasn't that they didn't want to hold the exams concurrently; there simply weren't large enough venues available.

Unlike later times when schools were everywhere and one could easily borrow some classrooms for examinations, now there weren't many venues available. Many had to take their exams in open squares.

Even the square in front of Franz's palace was borrowed by the government to serve as an examination site.

At the top of the Vienna palace, Franz took out his telescope and looked at the long line of examinees waiting to enter, feeling very emotional.

There was a time when he too was among the sea of examinees, facing failure after failure, attempt after attempt. Before the results of his last exam came out, his fate had already changed.

After a sigh, Franz put down his telescope and left the castle. By this time, the examination had begun.

In the examination room, the examinees were answering questions earnestly. Some were pondering, some were writing vigorously, some were scratching their heads, while the invigilators walked quietly back and forth. The atmosphere was extremely serene.

This was Austria's first civil service examination. The invigilators were very professional, but they exerted great pressure on the examinees.

Armed soldiers served as proctors. Those with weak nerves might find the setting intimidating.

Time ticked by, and the bell indicating the end of the exam rang.

"Everyone, stop writing immediately and leave the examination room. Those who violate this will have their results invalidated," a cold voice from an invigilator rang out.

One by one, they left the examination room with heads hung low. Clearly, many felt they hadn't performed well, with many answer sheets left largely blank.

Outside the exam hall, the place was buzzing. Groups gathered together, lamenting their performances.

"Wigel, how did it go?"

"How could it be? Who knew the Ministry of Finance would set such diverse questions? It's as if they tested everything. What about you?" Wigel replied with a bitter smile.

Politics, history, culture, economics, military, religion, geography, numbers, music, art, international affairs... all were covered in the exam paper.

While professional knowledge dominated, the myriad of topics had severely dampened spirits.

"I'm preparing for the next exam. No matter what, I must pass one, or I won't be able to face my family back home," Raul said with a serious face.

The passing rate of this examination had been made public: a high 50%. If one couldn't pass, they belonged to the eliminated half.

Nobles cared about their reputations. Being openly outcompeted and labeled as part of the eliminated group meant hanging their heads low for a long time.

Thankfully, in this era, there weren't many commoners taking the exams. If they had lost to a commoner, their stress would probably have been even greater.

"You're afraid you can't explain to Eilina, right? You've boasted so much in front of her," Wigel pointed out bluntly.

Exposing the lie, Raul nonchalantly responded, "So what? I've always been a poor student. It's expected if I don't pass. Having top graduates like you from Vienna University taking the same exam with us is inherently unfair."

Wigel calmly replied, "You're hoping that if I don't pass, you can mock me for a lifetime. Rest assured, that won't happen!"

Wigel was confident in passing the exam. However, he aimed for a good rank. There's a difference between barely passing and topping the list, and the treatment for each would undoubtedly differ.

High scorers stayed at the headquarters, while those with low scores were dispatched to local positions. This was an open secret. It's fair since everyone earned their scores.

The Austrian government valued efficiency. As soon as the examination ended, the marking began. Once the results were out, they were immediately made public, and candidates were selected based on scores.

If scores were the same, pedigree mattered. Those from higher backgrounds got priority. No further explanations were necessary.