Ming Dynasty: Ask Zhu Yuanzhang to abdicate at the beginning

Chapter 433 The Double-Edged Sword of the New Policy: Progressive Tax System and Stock Market Maneuvering!

"The 'equalization of land tax and poll tax' implemented a more balanced tax system."

"All those who own land, regardless of the amount of land they own, shall be taxed according to the acreage."

"This law seems fair and reasonable, and is intended to reduce the burden on those who have no land."

"However, this alone is far from enough to truly curb the evil trend of land annexation."

His tone grew heavier, as if a thousand pounds were pressing down on each word: "The fundamental reason why the poor are trapped in their predicament is that they have no ability to withstand risks."

“These people have no savings at all. If a relative falls seriously ill and needs medical treatment, or if there are major events such as weddings or funerals, or even natural disasters or man-made calamities, they will be like a candle in the wind, teetering on the verge of collapse.”

"At best, they will be ruined; at worst, they will be forced to sell their children in order to survive."

"And the small plot of land they depended on for survival was often seized by wealthy households at low prices at this time."

"Year after year, the land will eventually flow back to the sea like water, becoming increasingly concentrated in the hands of a few powerful families."

Zhu Yunwen slowly raised his head, his voice revealing a resolute determination: "Therefore, I am determined to implement the second new policy, which is the progressive land tax system."

"Taxes are no longer uniformly distributed per mu (unit of land area), but are divided into several grades based on the amount of land produced."

“Any farming household with less than ten mu of land is classified as the first class; those with more than ten mu but less than thirty mu are classified as the second class; those with more than thirty mu but less than fifty mu are classified as the third class; those with more than fifty mu but less than one hundred mu are classified as the fourth class; and those with more than one hundred mu of land are classified as the fifth class.”

“The first class of taxes has the lightest tax burden, which increases progressively, with the fifth class having the heaviest tax burden.”

"Whoever covets land will bear the heaviest tax burden."

"This law aims to break the vicious cycle of land annexation that has been difficult to resolve for thousands of years, and to allow more people to own land."

Upon hearing this, the expressions of the people in the hall varied.

Some people lowered their heads in deep thought, while others frowned deeply; for a moment, the atmosphere was heavy and oppressive.

Just then, Zhan Hui and Wang Zuo rushed over. They had just returned from the government office and hadn't even had a chance to catch their breath before being urgently summoned back to the palace, which made them suspicious.

Upon entering the hall, they learned that His Majesty was discussing new policies, and both of them were shocked.

"Your Majesty, this policy is absolutely unacceptable!" After understanding the new policy measures, Wang Zuo's expression changed drastically, and he immediately knelt down: "As Mencius said: 'Those who have stable property have stable minds; those who have no stable property have no stable minds.'"

“Those gentry and powerful families who own vast tracts of land are the foundation upon which the imperial court can stabilize its rule.”

“Landless refugees are often of low character, prone to causing trouble, and often commit crimes, disrupting local peace.”

“Suppressing land annexation is the right thing to do, but if we rush into it and take such harsh measures, it will inevitably be biased.”

“Imposing heavy taxes on wealthy gentry to force them to concede profits, while showing great leniency and preferential treatment to the poor who have little or no land, is not only contrary to common sense, but may also incite public resentment.”

"If this is implemented abruptly, I fear the world will be thrown into turmoil, and the very foundation of the state will be shaken!"

He slammed his forehead to the ground, his mournful cry heart-wrenching, as if the implementation of the new policies would toll the death knell for the nation and the destruction of the family.

Zhu Yunwen remained unmoved, his cold gaze sweeping over Wang Zuo before sweeping over the crowd in the hall, and he asked in a deep voice, "What are your opinions on this?"

Upon hearing this, Zhan Hui's expression turned solemn, and he immediately knelt down, saying, "I believe that this plan has far-reaching implications and is by no means a trivial matter. If it is implemented rashly, it may cause endless troubles."

The rest of the people remained silent, neither explicitly opposing nor nodding in agreement.

Inside the main hall, the air seemed to stand still, with only the flickering candlelight casting swaying shadows.

After a while, seeing that no one spoke up, Zhu Yuntong simply pointed at one person and said in a slightly authoritative tone, "Yao Guangxiao, you speak."

Upon hearing this, Yao Guangxiao bowed with his hands clasped, his voice low yet clear: "Your Majesty, since ancient times, scholars and officials have mostly aspired to pass down their family traditions of farming and reading."

"After enduring hardships and accumulating some wealth, they would purchase hundreds or even thousands of acres of fertile land in the countryside as a foundation to be passed down through generations."

He raised his eyes, his gaze deep and penetrating, as if he could see into people's hearts: "With this land, my descendants will be able to live in peace for dozens of generations."

"However, if the imperial court were to actually implement a progressive tax system, the more land one owned, the heavier the tax burden would be, and the path of family business succession would be severed."

"This alone will provoke fierce opposition from the gentry and scholar-officials."

"Even the nobles of the court, and even the soldiers in the army, are the same."

"Because the soldiers fought bloody battles on the front lines, they also hoped to earn some wealth and pass it on to their descendants."

Upon hearing this, Zhu Yunwen's brows relaxed slightly, and he felt a sense of relief.

Upon closer examination, the fact that Yang Shiqi, Yang Rong, Xia Yuanji, and others remained silent was actually a veiled indication that they did not support the idea.

The reason is simple: they all come from scholar-official families. Even if they are young now and have only young children, or have no descendants yet, they will have them in the future. Who doesn't hope to leave a substantial family fortune for their descendants that can last for generations?

For example, doesn't the royal family also hope that their empire will last forever and be passed down from generation to generation?
However, if a progressive land tax system is implemented, the more land a family owns, the heavier the burden becomes, and the hope of passing on the family business will be like a candle in the wind, flickering and about to be extinguished.

The difference between handing over cash directly to one's descendants and bequeathing a lasting estate is worlds apart.

If a spendthrift son emerges among the descendants, no matter how much gold and silver there is, it will vanish in just a few years if he squanders it.

Only with farmland as its foundation can a place stand firm and endure.

The introduction of progressive taxation effectively blocked the path to building a business empire, which explains why even people like Yang Shiqi were resistant to it.

Even if they didn't care about their descendants, based solely on their background and position, they would inevitably favor those who acquired property and established businesses.

This is human nature, deeply rooted and difficult to shake.

Only Yao Guangxiao, this old monk who had no children and had long since cut off his own path, was able to transcend worldly ties and speak frankly.

He bowed slightly, his gaze calmly fixed on Zhu Yunwen, as if silently saying: Your Majesty should carefully consider the advantages and disadvantages involved.

Zhu Yunwen remained silent for a moment, his mind churning with thoughts.

Inside the hall, everyone held their breath, awaiting the young emperor's decision.

"Please calm down and let me finish speaking."

Zhu Yuntong's voice was steady and powerful, as if he wanted to calm down the emotions that had just surged within him.

He immediately spoke, his tone revealing a sense of composure: "Complementing the progressive land tax system are a series of supporting new policies."

Zhu Yunwen smiled faintly: "Your concerns that the gentry, officials, and even the families of generals will rise up against the new policies because they cannot pass on their family businesses to their descendants are a bit of an overreaction."

"I am determined to establish a stock exchange in the Ming Dynasty, promote stock issuance, and integrate the many factories under the Ministry of Assets of the Ming Dynasty into companies and publicly list them."

"Furthermore, those mercenary groups formed by nobles and gentry who venture overseas for exploration can also be reorganized into companies and, after approval by the relevant court agencies, go public to raise funds."

“The land held by the gentry can be used as equity investment and converted into corresponding shares.”

"These shares can serve as the foundation of our family business and be passed down to our descendants for generations."

Stock exchange?

Stock issuance?

"Package and listing?" This string of unfamiliar terms left the people present looking at each other in bewilderment.

What exactly is His Majesty saying?
Why is this something I've never heard of before, leaving me completely bewildered?
Seeing the blank expressions on everyone's faces, Zhu Yunwen understood their confusion.

He calmly explained, "A stock is a certificate of ownership of a company."

"The stock exchange is the place where these certificates are bought and sold."

"Going public means making the company's assets public, issuing stocks, and raising funds to strengthen its position."

He paused, his tone becoming increasingly clear: "The method of investing has existed since ancient times."

"When merchants in the Ming Dynasty ran their businesses, they often invited others to invest in them, which was essentially a form of shareholding. Now, we are simply extending this method to a wider range of applications."

Zhu Yunwen then explained stocks and the stock market in great detail.

He had been thinking about the plan to open a stock market and issue stocks for a long time.

Around this time, the world's earliest stock markets and securities exchanges also appeared.

He simply pushed the timeline forward by a little over a hundred years.

For the slow-developing feudal era, this was not such a distant time.

With the Ming Dynasty's various industries, commerce, and finance sectors flourishing, it's time to launch a stock market.

Although the stock market has many drawbacks.

But overall, it's definitely still beneficial.

Otherwise, later countries wouldn't have all established stock markets and issued stocks within their own borders.

Furthermore, the problem of resource sourcing for acquiring land from local gentry can be solved by "investing in shares".

The local gentry voluntarily contributed their land as shares in the government's company, and the land was thus taken over by the government without the government having to spend a single penny to acquire it.

In addition, the Ming Dynasty's overseas expansion also needs the support of the stock market.

The risk of bank loans is too high, and banks should not lend money or take on such a big risk.

Raising funds through the stock market and bearing the profits and losses yourself is the best way to venture overseas, and it is also a mature experience from the Age of Exploration.

A proven and feasible solution!
Let the "gamblers" gamble on the profits from going overseas!
Win and you'll be rich overnight; lose and you'll be bankrupt.

In any case, it has nothing to do with the imperial court, and it won't cause a financial storm like bank loans.

It can also raise more funds to go overseas.

This will propel the Ming Dynasty's maritime endeavors to an unprecedented new peak.

The people in the hall were all extraordinary talents with sharp minds. As Zhu Yunwen explained in detail, they quickly understood, and the doubts in their eyes gradually disappeared, replaced by thoughtful expressions.

Seeing this, Zhu Yunwen continued, "If the gentry convert their land into shares and inject them into the factories of the Ministry of Assets of the Ming Dynasty, then these lands will be handed over to the leasing management agency previously established by the court for unified operation."

"In this way, their land is converted into factory equity, thus naturally exempting them from the heavy burden of progressive taxes."

His tone revealed a hint of excitement: "You, as important officials in government, must be well aware of the enormous profits these factories in the Ming Dynasty make."

“Owning shares in these factories and having future generations enjoy dividends is no different from owning a piece of land and collecting rent.”

“If farmland is not managed well, or if there is a poor harvest in a year of disaster, there may be no harvest at all. But if you hold shares in a factory, you will not have such worries. The income is stable and you will not be affected by the weather.”

"The same principle applies to acquiring shares in the overseas companies held by nobles."

“Once the land is converted into shares, there is no longer any need to be burdened by progressive taxes. The inherited land property of the past is now transformed into company shares.”

"As long as the company continues to operate, future generations can rely on dividends and profits to enjoy a comfortable life."

Zhu Yunwen spoke eloquently, his words displaying both imperial authority and patient, persuasive manner.

Upon hearing this, the people in the hall reacted in various ways. Some remained silent in contemplation, while others' eyes flashed with amazement, clearly shaken by the profound implications of the new policy.

Of course, Zhu Yunwen deliberately concealed the risks inherent in company operations, which were far from the stable and controllable truth of land management.

He also failed to mention the nature of stocks as highly liquid assets.

If it falls into the hands of unworthy descendants, it is highly likely to be squandered and sold off, becoming a hidden danger of nothingness.

In this feudal era, many businesses operated as steadily as a rock, rarely facing collapse.

Although the companies under the Asset Management Department are newly established, they are thriving and generating astonishing profits, making them far from being associated with bankruptcy.

Therefore, the people inside the hall were unaware of the hidden flaws within.

Although they were exceptionally intelligent, they were unable to foresee the changing winds and clouds of the distant future.

Especially during the period when Ming society underwent dramatic changes and upheavals under the rule of Zhu Yunwen.

They are still inevitably limited by their original experiences and ingrained ideas.

It's impossible to imagine what a capitalist society would be like at this point in time.

In fact, in Zhu Yunwen's initial grand plan, even if the gentry converted their land into shares, he still planned to tax these assets to ensure the court's control and balance.

However, the fierce opposition from Zhan Hui, Wang Zuo, and others earlier was like a bucket of cold water poured over him, sobering him up.

If you take too fast a step, you may end up achieving the opposite of what you intended.

Even in later societies, the implementation of asset taxes faced numerous obstacles and was slow to materialize.

Moreover, the Ming Dynasty is still deeply entrenched in feudal constraints.
The ability to transform countless feudal landlords into emerging capitalists in such a short period of time was an unprecedented feat, a true miracle.

Demanding more would be overly impatient and short-sighted.

Thinking of this, Zhu Yunwen smiled calmly: "Use a progressive tax system to curb the trend of land annexation, so that farmers can live in peace on their land."

"Furthermore, by issuing shares publicly, those who are not good at commerce, unable to set up factories, and even less capable of organizing mercenary groups to sail overseas can also invest in the company and enjoy dividends and profits."

"Company shares can serve as a family business, passed down to future generations."

"The original farmland, after being handed over to the company, was transferred to the leasing agency established by the government for unified management and cultivation by poor farmers."

"In this way, the rich can reap huge profits from trade and manufacturing, while the poor can have land to cultivate and enough to support their families."

"The powerful families have no worries about losing their property, the poor families are free from the problem of lacking land, and the court no longer needs to rack its brains over the issue of land annexation."

He paused, his eyes gleaming, and surveyed the people in the hall. His voice was tinged with a smile yet maintained his authority: "Everyone gets what they deserve, and everyone is happy. What do you all think of this plan?"

……

(End of this chapter)