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Chapter 104 Rule of Law

Li Zhi was sitting in the Qinzheng Palace of Prince Qi's Mansion. His eldest son Li Huan stood in front of the table, curiously looking at the documents on Li Zhi's table.

It has been eighteen years since Li Zhi traveled to this era, and his eldest son Li Huan is already fifteen years old and has grown into a handsome young man.

Li Huan is now as tall as Li Zhi, but the young man's body has not grown yet, so he looks a little thin.

Li Huan looked at the bill on Li Zhi's desk and asked: "Father, what is the "Market Economy Law"?"

Li Zhi looked at Li Huan and said slowly: "The so-called market economic law is to give each enterprise in market competition the power to independently decide on its business plan. It allows individual enterprises to act completely in accordance with market laws."

After a pause, Li Zhi said: "To be specific, in our economic system, companies and firms have completely independent rights. Whether to start work is entirely the company's independent power. It is based on the company's current profits, raw materials and

Decisions made based on the situation of workers should not be interfered by external forces and the government."

"This kind of independent power is the prerequisite for the efficient operation of the market economy. Each enterprise only chooses to start operations when the benefits are maximized, so as to avoid resources that should be used elsewhere being wasted here. If the enterprise cannot produce

If the profit, or the profit level cannot exceed the social interest rate, the enterprise should stop production or even close down. Precisely because each economic individual can independently decide on its own production plan, the efficiency of the entire society can be maximized."

"If the government interferes externally with the production plans of enterprises, allowing enterprises that should be closed to continue production, and allowing enterprises that should be producing to stop production, the entire society will fall into the inefficiency of the planned economy."

As a time traveler, Li Zhi certainly understands the various shortcomings of enterprises under the planned economy. It can be said that enterprises under government control are not enterprises at all, but part of a bloated government.

Once they encounter external competition, enterprises under government regulation are often vulnerable due to inefficiency.

Li Zhi was in charge of one town and nine provinces, and he was trying to prevent the Tianjin system from repeating the mistakes of the Soviet-style planned economy. Li Zhi never interfered with the life and death of private enterprises, and allowed enterprises to rise and fall in the fierce market competition, and ultimately allowed the most efficient enterprises to survive.

.Basically, Li Zhi’s management methods are quite effective.

Various private enterprises in one town and nine provinces are very dynamic and efficient enterprises. Although these private enterprises do not have Li Zhi's inventive and creative capabilities, their management and production efficiency are even higher than Li Zhi's state-owned enterprises.

It can be said that these private enterprises have activated the vitality of the market, allowing every place where wealth can be created to operate as efficiently as desired. The prices of various products in society have been reduced to the lowest, and the quality has reached the highest level in the competition.

These cheap and durable industrial products support the framework of various industries in one town and nine provinces.

After listening to Li Zhi's words, Li Huan nodded and said: "My father's management ideas are very different from those of ordinary bureaucrats. The subtleties in them astonished my son. The current economic prosperity of one town and nine provinces is precisely because of my father."

Wang's exquisite management allows every enterprise and firm to maximize its vitality."

After a pause, Li Huan asked doubtfully: "But all the arrangements my father made have already become rules. All the bureaucrats in one town and nine provinces are acting in accordance with my father's rules. Why did my father issue this law at this time?"

"

Li Zhi nodded and said, "However, everything has a limit."

"Today, the market order in one town and nine provinces is being distorted by some people with ulterior motives. Today I issued the "Market Economy Law" to clarify the scope of market economy, so that when the "Anti-Monopoly Law" is released, officials and officials in one town and nine provinces will

Businessmen should not be confused and think that the government should intervene in the market in the future."

Li Zhi walked to the bookshelf and handed Li Huan the pamphlet on the "Anti-Monopoly Law" that he had compiled a few days ago.

Li Huan opened the pamphlet and read it word for word: "The so-called monopoly is when a certain organization or individual, relying on the capital it controls, sufficient production and operation scale and market share, through agreements, alliances, alliances, equity participation and other methods,

Manipulate and control the production or circulation of goods in one or several sectors.”

"If there is a 10% monopoly, there will be no competition in the market. Monopolistic organizations can use their monopoly position to obtain huge profits that exceed the normal profit range, or they can use their monopoly position to seek political interests and social status that exceed the market scope."

Li Huan read for a while, then raised his head and said, "Is this law enacted by your father to deal with Hua Kefang's Fanjiazhuang General Chamber of Commerce?"

Although Li Huan is only a young man, as the crown prince of Prince Qi, he already has many capable people around him.

Li Zhi assigned various teachers to Li Huan. Some of these teachers were old bureaucrats in the Tianjin system, some were experienced generals, and some were intelligence chiefs under Han Jinxin. In short, Li Huan had a team like the Prince of the East Palace, which ensured that Li Huan could

Maximizing access to social news also ensures that Li Huan can experience how to manage a team from an early age.

Therefore, although Li Huan is only fifteen years old, he is already very aware of various things in society. When Hua Kefang gathered businessmen to challenge Li Zhi, although Li Huan did not go to the agricultural machinery alley, he already knew it very clearly.

Li Zhi nodded and said: "Li Huan, nothing is absolute. Absolute freedom cannot bring absolute efficiency. Take the private economy of Fanjiazhuang as an example. My father allowed the company to grow completely independently, but Mr. Fanjiazhuang was born."

The Chamber of Commerce is such a monster. This monster does not pursue economic efficiency, but uses the resources it controls to seek political power."

"Although the merchants of the Fanjiazhuang Chamber of Commerce are all limited-scale merchants individually, these merchants have united through the chamber of commerce to form a self-aware organization. This organization has already monopolized agricultural machinery, dyes, cement and water trucks.

Production in other industries. Not only that, they stopped production collectively and used their monopoly position to challenge society."

"So, my father wants to introduce this anti-monopoly law to help government officials investigate, manage, and punish this kind of monopolistic behavior that goes against market competition and efficiency."

Li Huan blinked his eyes, raised his hands and said, "My father's methods are admired by me. With the Anti-Monopoly Law, Hua Kefang's chamber of commerce will fall apart in an instant."

"Father, do you want to arrest Hua Kefang according to law?"

Li Zhi shook his head and said: "The Anti-Monopoly Law cannot be implemented immediately after it is announced. There must be a period of time from the announcement to the implementation of the law, and market entities must be given time to adjust their behavior in accordance with the law. Otherwise, the law will become child's play."

, has become a rope that those in power can play with at will. "So after the Anti-Monopoly Law is announced in a few days, it will take another three months to be implemented. Although Hua Kefang is hateful, he manipulated it before the Anti-Monopoly Law was promulgated.

The market did not violate the laws of the time. So as long as he changed his mind within these three months, my father could not punish him."

Li Huan was stunned for a long time and then said: "It's an advantage for him!"

Li Zhi sat on the chair and said slowly: "This is the rule of law!"


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