Becoming a Russian Oligarch After Rebirth
Chapter 894 - 848: The Great Infrastructure Construction Plan

Chapter 894: Chapter 848: The Great Infrastructure Construction Plan

Russia, as a country, has been graced with a continuous outpouring of talents in the fields of science and technology, literature, arts, and medicine, including the foundational disciplines.

However, the only exception seems to be the field of economics, where there really isn’t much research...

Otherwise, given the assets it has inherited and the continuous efforts by the upper echelons to promote economic development, one would expect the national economy to be thriving.

So why hasn’t the country truly become wealthy? Even during those years of rapid economic growth, it only basked in the glow of soaring international energy prices.

The real economy has always been weak. Apart from oil and natural gas, there isn’t a single standout pillar industry.

Ultimately, the whole country couldn’t find an expert in economics.

Or rather, there isn’t really anyone who understands the economy among the high ranks in the political arena!

Those present, the committee members, are clearly aware that Director Mikhail is a true tycoon in the business world, whose understanding of economic aspects is unmatched by them.

Raising this question, they may not have expected a real answer, but simply wanted to lead into what comes next.

So no one dared to come forward and "show off" their limited knowledge; everyone maintained their silence, waiting for Wang Ye to continue his point.

Wang Ye looked around the room, seeing that no one had anything to say, and continued:

"Economics can be complex, but it can also be quite simple.

In my understanding, to promote the prosperity and development of all sectors of society, the most crucial thing is to get the money circulating!

There is a story about this.

There was a small city, somewhat isolated and backward, with a struggling economy, and the lives of the people there were not at all comfortable.

One day, a foreign businessman passing through the city decided to stay for the night and found a hotel.

He took out ten thousand rubles to book the hotel’s best suite.

The hotel boss, upon getting the money, immediately used it to pay the wages he owed to his hotel staff.

When the hotel staff received their wages, they suddenly had so much extra money that they went to the mobile phone store beneath the hotel and bought a new phone.

The phone store boss, after selling the phone, hurriedly paid the back rent and water and electricity bills they owed the hotel.

The money went around in a circle and eventually returned to the hotel boss.

It was at this time that the foreign businessman, after seeing the room, felt that the accommodation was too poor and was dissatisfied. He asked the hotel boss to refund the room fee and left...

Think about it, the hotel boss didn’t make a profit, but everyone’s debts were paid off, and there was even consumption, which promoted the circulation of goods.

What principle does this story illustrate?"

Saying this, Wang Ye paused and looked at everyone.

The dozen or so committee members had varied expressions.

Some were frowning in deep thought, others were looking down, pondering something, while some simply looked clueless.

Indeed, the story Wang Ye told was quite... "peculiar".

No one made any money, but why were all their debts paid off, and the hotel staff even bought a new phone?

Wang Ye himself did not expect them to provide an answer, so he revealed the solution.

"This story tells us that the economy is not just money; it is about the circulation of money!

Only when money starts to circulate can all sorts of economic and even social problems be resolved.

So, in the actual society, who can take on the role of the foreign businessman?

I believe foreign investment is best suited for this, and this is one of the reasons why countries around the world strive to attract foreign investment.

If there is no foreign investment, or let’s say the amount of foreign investment is insufficient, how then do we resolve this issue?

I think that banks can take on this role!"

At this point, Wang Ye paused again, giving everyone time to ponder.

A few committee members, having heard this, began to grasp the meaning behind Wang Ye’s words, showing expressions of sudden enlightenment.

"Director Mikhail, are you suggesting... to allow the Central Bank to print an excessive amount of money? Wouldn’t that cause massive devaluation of the currency?" One committee member seemed to understand a bit more and, after some thought, voiced his concerns.

It is well known that printing money is simple, only requiring that the printing presses work overtime without any real cost.

If this could make a country wealthy, then it would be all too easy – every country would do the same.

Therefore, printing money is straightforward, but the key issue is that it can cause currency devaluation, which in turn leads to inflation!

This can quickly become an uncontrollable situation, with numerous negative examples already well known.

Like the frequently joked about "Zimbabwean Dollar"...

Wang Ye nodded, "It is indeed possible that this could lead to such consequences, but it’s not inevitable. Have you noticed that other countries are also printing money excessively, but their economies haven’t been affected, and their currencies haven’t devalued? In fact, they are developing quite well."

Wang Ye did not elaborate on which countries had been successful with this approach.

If the committee members still didn’t understand by this point, it would only indicate a serious lack of economic knowledge...

Wang Ye wasn’t planning a "scholarly discussion" with them in the first place; he merely needed their agreement on his economic advancement plan. The real implementers would be governmental institutions like the Central Bank, the Ministry of Finance, and the Ministry of Commerce!

The professionals in those departments are the real experts and should understand his intentions.