Chapter 336: Encouraging Financial Situation
If we look at the populations of the Central Powers and the Allied Powers separately, the total population of the Central Powers is 65.41 million + 52 million + 35 million, equaling 152.41 million people. Meanwhile, the total population of the Allied Powers is 165 million + 44.1 million + 39.7 million, totaling 248.8 million people.
When comparing the two, the population difference between the Central Powers and the Allied Powers is nearly 100 million people. While most of these 100 million people are Russian, we must not forget that both Britain and France also have vast colonies. If we include the populations of India and the African colonies, the Allied Powers' population would increase by several hundred million, far surpassing that of the Central Powers.
The massive population gap reflects the existing difference in the military capabilities of the two sides. If we add Italy, which is a highly unstable factor, the gap between the Central Powers and the Allied Powers becomes even more apparent. If not for the overwhelming strength of the German Army, it's doubtful the European situation would have reached its current state.
This vast population difference represents a larger war potential for the Allied Powers. If the war were to last only a few months or less than a year, the war potential on both sides might not differ significantly. But if the war lasts for years, even if Germany suffers minimal losses, it will eventually be drained by the combined efforts of Britain, France, and Russia on the European battlefield.
In 1912, Australasia's Gross National Product (GNP) reached 1.43 billion USD, a significant growth compared to the previous year. Currently, Australasia's economy ranks among the top ten worldwide. Of course, compared to the major powers like Britain, Germany, and the United States, it's still far behind, but when compared to lower-tier powers like Italy and island nations, Australasia has the potential to catch up.
Throughout 1912, the Gross National Product of major nations was as follows:
United States: 39.14 billion USDGermany: 12.477 billion USDUnited Kingdom: 11.785 billion USDFrance: 9.522 billion USDRussia: 8.438 billion USDItaly: 4.065 billion USDRepublic of China: 3.652 billion USDIsland Nations: 2.5 billion USDAustria-Hungary: 2.042 billion USD
When compared to Austria-Hungary or island nations, Australasia is already on track to surpass them. However, that's not the whole picture. The high GNP of Australasia is largely due to the contribution of the royal family's major businesses.
In particular, companies like Benz Motors, which are popular worldwide, contribute significantly to Australasia's total economy and taxes, making their contributions far greater than what the numbers can reflect. Without these contributions from the royal family's enterprises, Australasia's GNP would likely struggle to break the 1 billion USD mark.
The development of the economy is also visible in the living standards of the people. As of now, the average annual income in Australasia has reached 50.3 Australian dollars, though the growth rate has clearly slowed. This is normal, as the initial rapid growth was due to the low baseline of average income.
Arthur's factories and enterprises have been paying wages far higher than the average, which has rapidly driven up the average income. Australasia's current average income is not low by global standards and is considered middle-high in Europe.
As of now, the highest average annual income is found in the economically most developed country, the United States, where the average income is 350 USD, about 70 pounds, or 140 Australian dollars.
Next is the United Kingdom, with an average income of 249 USD, or around 60 pounds. Germany, France, and Italy rank third, fourth, and fifth, with average incomes of 190 USD, 160 USD, and 115 USD, respectively.
When compared to these figures, Australasia's average income of 50.3 Australian dollars, which is approximately 125.7 USD, exceeds the average incomes of Austria-Hungary, Russia, and Italy.
While the total economic output of these countries is far greater than Australasia's, their populations are also several times or even more than ten times larger than Australasia's. Meanwhile, Russia, with its relatively low average income, still has a significant portion of its population living in poverty, where even having a full meal can be a luxury.
In such circumstances, it is no surprise that a large number of Russian citizens are choosing to emigrate to countries like Australasia, where Arthur has strongly advocated eliminating hunger within the nation.
It's no exaggeration to say that as long as people come to Australasia and pass the immigration review, they won't have to worry about facing hunger. Once they pass the immigration process, they are effectively treated as Australasians and can enjoy the country's welfare and food policies.
Even those with low education and unable to find work are placed in construction and infrastructure projects, earning food and housing through public labor schemes.
Though the royal family spends millions of Australian dollars annually on distributing various welfare foods, the expenditure is worth it. Looking across all of Australasia, who doesn't feel grateful for the royal family and Arthur?
Spending a small amount of money to gain the people's approval and affection has been a very profitable business for Arthur. By ensuring that people are fed and clothed, even societal stability has significantly improved.
In the early days of the Australian Duchy, security and law enforcement weren't as strong. At that time, there were even cases of theft and robbery just to get a meal. But now, unless there is a significant financial incentive, who would be willing to risk breaking the law for a meal?
It's worth mentioning that for all low-income or no-income people registered in Australasia, the Royal Welfare Committee distributes free food every year, which is enough for these people to be fed.
Although the food is basic—primarily grains, with a small amount of meat, milk, etc.—for those facing hunger, having something to eat is better than nothing. More importantly, these foods are distributed directly by the Royal Welfare Committee, under the supervision of the royal family, ensuring there is no theft or corruption.
Naturally, if such an event were to occur, Arthur wouldn't hesitate to let people witness the royal family's authority and the consequences of offending them.
Although Arthur is usually seen as kind and rarely gets angry, the high-ranking officials and elders in Australasia's political circles know that if anyone crosses Arthur, even God wouldn't be able to save them.
For Arthur, with his supreme royal authority, he is Australasia's sky, and whatever he says is the truth of the nation.
The rapid economic development is also reflected in Australasia's government finances.
In 1912, the total revenue of the government's finances reached 96.37 million Australian dollars, a 23% increase compared to the previous year. This massive growth is largely attributed to events like the Sydney Olympics and the successful global voyage of the airship Morning Dawn.
A large number of foreign tourists flocked to Australasia, contributing significantly to the country's economy and to the government's tax revenue.
In addition, the continued growth of Australasia's domestic economy has brought government finances closer to the 100 million Australian dollar mark. However, 1913 doesn't have the Olympics, so it will be more challenging to maintain such growth.
There is, however, good news: the second phase of the Leonora Industrial Base has been completed and will begin production and hiring workers in the new year. This will contribute significantly to the industrial and economic growth of Australasia, making continued fiscal growth a possibility.
Of course, the surge in fiscal revenue also means that fiscal expenditures won't decrease. In 1912, the government's total fiscal expenditure reached 89.13 million Australian dollars, an increase of more than 22 million Australian dollars compared to 1911.
This large increase is mainly due to preparations for the Olympics and an increase in immigration policies. Furthermore, significant investments were made in food stockpiling, weapons production, and medical supplies.
Despite these high expenditures, the government's finances remain in surplus, with a surplus of 7.24 million Australian dollars. This is certainly better than a deficit, and not many of the world's major powers can say the same.
In fact, except for Britain, whose vast colonies contribute to its surplus, most other countries are experiencing fiscal deficits.
A report from the Royal Security Intelligence Bureau's European division shows that, except for the British mainland, all other major powers are in fiscal deficit. The Russian Empire, in particular, faced the largest deficit, with total fiscal revenue of 130 million pounds and expenditures of 185 million pounds, resulting in a deficit of 55 million pounds, which is even larger than Australasia's total fiscal revenue.
This is the advantage of having a large population. Even though Russia's economic condition isn't that great, the sheer size of its population still places its fiscal revenue among the top in the world, behind only the most economically developed countries like the UK, France, Germany, and the United States.
(End of Chapter)
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