Becoming a Russian Oligarch After Rebirth
Chapter 1465 - 1132: Accelerate Again_2

Chapter 1465: Chapter 1132: Accelerate Again_2

In the past two years, with these funds, indeed a lot of significant things have been accomplished!

Especially the heavy investment in the Chip wafer industry, which has now officially started production. In terms of process technology and production scale, it’s world-class!

It’s said that after the huge Chip wafer factory in the Suburbs of Moscow began operations, it directly squeezed out many competitors. After all, this side of the Chip industry is supported by massive government subsidies, and the Industrial fund provided a lot of subsidies in the early stages.

But most competitors don’t have such good treatment, and cannot get much in terms of subsidies. Everyone still cherishes the idea of a "Global Village, globalization" in this era, with less protection for local industries. Many people think that in the future, there will be a clear division of labor in the global industry chain, and everyone just needs to do well in one part.

So the Chip wafer Industry that Wang Ye has been working on didn’t attract much political attention. Initially, this Industry was fully competitive and had not yet formed the monopoly situation that would be dominated by two or three giants later on.

You’d think that once the most money-absorbing Chip wafer industry is supported, the annual $170 billion industrial support fund would scarcely have places that need huge investments. Yelena was even considering suggesting to Wang Ye to reduce the Bond issuance in the future, from $200 billion a year to just $100 billion.

This way, after deducting the $30 billion support for allied nations, there would still be $70 billion left, which is more than enough to spend!

Yelena was utterly shocked when Wang Ye called her over for a discussion today and immediately proposed to continue expanding the bond issuance size.

Her big eyes blinked in confusion, and she asked, "Boss, are you planning to invest in some new major projects?"

It’s no wonder she asked this because only new projects with huge Investment needs would require the expansion of bond issuance.

Otherwise, borrowing so much Money and not using it, won’t we still have to pay it back...

Wang Ye smiled, nodded, and said, "The Industrial Fund Office that you control, in fact, can play an even bigger role! For example, the Chip wafer, Internet, and Automobile Industries that I asked you to focus on supporting in these two years have indeed developed well, and the foundations are fairly solid. But in my view, that’s not enough, we can do even better!"

Yelena instinctively pulled out a notebook and a pen, ready to write down everything Wang Ye said.

Having been around Wang Ye for so many years, she knew very well that every time Wang Ye said something like this, what followed was extremely important, and could even change the entire Industry or even the National Economy’s pattern!

Wang Ye paused for a moment, then continued:

"To ensure the healthy and flourishing development of the entire Industry, investment in production is not enough; it’s even more important to promote consumption among the public.

Because only when everyone starts buying and using them can it be truly popularized!

Otherwise, no matter how strong your production capacity, if you can’t sell or the Consumers don’t buy in, it’s useless.

I plan to have the Industrial Fund Office introduce targeted Consumer subsidies in the future. For instance, if we want to accelerate the spread of the Internet, then we could provide cash subsidies for Consumers purchasing personal computers or applying for Broad band installations, reducing their purchasing and usage costs. Only then can we more rapidly popularize Internet usage nationwide!

Simultaneously, as Electronic products like computers and mobile phones become widespread, they will indirectly boost the Chip wafer Industry’s development because these Industries are interlinked.

Similarly, our Russian Auto Group has also established large production Bases now, with an annual capacity of over a million units, and there’s still great potential for expansion, but there is significant sales pressure.

What if we introduced Automobile purchasing subsidies? When Consumers buy new cars, we give them a 10% subsidy upfront; wouldn’t that stimulate enthusiasm for purchasing cars?

If everyone is eager to buy cars, wouldn’t Automobile Enterprises be able to expand production, provide more employment opportunities, pay more Taxes, and even consume more raw materials to drive the development of more Industries..."

After Wang Ye’s lengthy and broad discussion, Yelena was stunned.

She didn’t realize that Industry support could be conducted in this way!

However, doing so would mean that the country, acting as a guarantor, borrows Money and then directly distributes it to ordinary people for consumption; is this really okay...

After much hesitation, Yelena still voiced her doubts, "Boss, are you sure this won’t cause any adverse effects? Like inflation, or having to bear a huge Debt pressure in the future?"

Wang Ye smiled and shook his head:

"Appropriately incurring debt and reasonably utilizing it can lead to better economic development!

There is no need to worry about the debt issue, as long as our economy keeps growing rapidly, that bit of bonds is not a problem at all.

Of course, should economic development come to a halt, or even regress, the risks of a debt crisis will also become prominent.

However, I am confident that at least for the next decade or so, there won’t be any issues with economic development!

Therefore, we can confidently issue bonds and provide additional support to the development of the national economy."

The original intention of Wang Ye was based on his memories from his previous life, where the next decade or so was indeed a golden era for economic development. Without those extra "troubles" and with efforts to foster good relations with other countries, Russia’s economy should be able to surge forward.

But when Yelena heard this, she thought Wang Ye was saying that as long as he held his position for his "two terms," the economy would definitely not encounter any problems!

Yelena felt inward admiration, the Boss was still so confident.

Indeed, a man is charming when he has enough confidence...

...

What Wang Ye was doing was borrowing the "consumer subsidy" strategy from later generations. This was nothing new, but it was indeed effective.

In modern economics, just knowing how to make money is not enough; the key is also knowing how to spend it!

Only when money circulates can a country’s economy develop healthily. Otherwise, if everyone earns money and just deposits it into the bank, not willing to take it out for consumption, who will buy all the products produced by various industries?

If products don’t sell, it leads to a vicious cycle: businesses lay off employees or even go bankrupt, a large number of jobs disappear, many people become unemployed or their wages decrease, and then everyone is even more reluctant to spend money, leading to even more businesses closing down...

On the contrary, if everyone is willing to spend money, even like the United States, spending "tomorrow’s" money to enjoy life today!

That indeed plays a very positive role in stimulating growth: businesses thrive and expand, providing more jobs and taxes, everyone’s income increases, and the positive outlook on the future makes people more willing to spend...

This is a virtuous cycle, so don’t think that spending in advance is a bad habit and thriftiness is a good one—it depends on the perspective you are coming from.

If you are looking from the perspective of the country as a whole, the people on top definitely hope that everyone spends freely, borrows money to consume, and ideally takes out loans for decades to spend!

The benefits of that are just too great. It not only leads to the healthy development of every industry but also makes you work diligently for decades under the pressure of loans, without trying to start any trouble or laying flat...

However, Wang Ye didn’t analyze these underlying logics with Yelena. This aspect would become apparent to her after the various subsidies were distributed, as she would analyze the effects and track the subsequent development by herself.

She would come to understand this logic on her own, and perhaps in the future, she might become even more aggressive than Wang Ye...

Ultimately, the two agreed to increase the annual bond issuance to three hundred and fifty billion US dollars, which would mean that around three hundred billion could be invested in consumer subsidies.

The subsidy focus would be on personal computers, broadband, mobile communication, automobiles, and housing—these major items!

After all, for most ordinary people, these are the big-ticket items in their lives...

...

Amidst the busyness, the date approached March 7th, the day when Wang Ye would officially take office...