Industrial chains and markets

Mirabeau carefully considered the Crown Prince's words, and, taking into account the actual situation in France, his expression gradually became serious. "Your Highness, the most advanced Steam Engine technology is currently in the hands of the United Kingdom; we can only imitate their products from over a decade ago."

"By the way, I heard that United Kingdom recently built a new Steam Engine that has the power of more than ten horses."

"You're right," Joseph nodded. "That's why we need to establish Industrial Development Zone as soon as possible to attract capital and talent to invest in the research and development of new technologies."

Mirabeau said somewhat dejectedly, "I wonder if we can still make it..."

Joseph smiled confidently, "You should have confidence. We're only temporarily behind."

"Once the basic Industrial Chain is established and Positive Cycle is formed, technological breakthroughs will be an inevitable result."

Mirabeau was confused again. "Your Highness, what do you mean by ' Industrial Chain ' and ' Positive Cycle '?"

"I spoke too hastily," Joseph said apologetically, waving his hand. "The so-called Industrial Chain is a series of industries involved in the development of a particular industry, which are combined to form a chain."

Mirabeau was an important figure who could help Joseph promote the development of France industry, so he was very patient and explained the relevant knowledge and ideas to Mirabeau.

"For example, we used to spend a lot of money to recruit United Kingdom Textile machine technicians to help us develop the Textile, but when they arrived, they found that they couldn't even find the simplest tools and couldn't start work at all."

"The tools here are actually part of the Textile Industrial Chain. Similar links include the cleaning and storage of raw materials such as cotton and wool, the manufacturing and maintenance of looms, the construction of Workshop, the transportation and sales of products, and even the recycling of waste products."

All of these together constitute the Textile's Industrial Chain.

"Only when the entire supply chain develops healthily can we have a strong Textile industry. We neglected the Industrial Chain back then, thinking that acquiring a few looms would allow us to catch up with the United Kingdom Textile."

Mirabeau felt as if the clouds had parted and the sun had shone through, nodding repeatedly. "So we've spent a lot of money, but the Textile has always been firmly suppressed by the United Kingdom. It turns out that these seemingly trivial things behind the loom are what we lack even more!"

Joseph thought to himself, "He really is a talent of the Great Revolution; he understands things so quickly."

He continued, "Therefore, if we want to develop the Steam Engine industry, we must pay attention to the Industrial Chain from the very beginning."

"Starting from the most basic Coal and Iron Mine mining and transportation, to Workshop manufacturing basic measuring tools, then to Workshop printing blueprints and documents, and finally to Workshop building testing platforms."

"Gradually, the process transitioned to building Workshop that produced small parts, Workshop that cast rough Machines blanks, and eventually Workshop that assembled the entire Steam Engine."

Finally, there is a series of supporting industries such as the sale and repair of Steam Engine, on-site assembly, etc.

"With these, we can finally be considered to have the real ability to manufacture Steam Engine. Otherwise, even if we can copy the latest United Kingdom models, we will eventually be left far behind by the United Kingdom again."

While he was speaking, Mirabeau had already had his Servant bring him paper and pen and began to take notes quickly and earnestly—these were concepts he had never heard of or even imagined before, which opened a door to a new world for him.

That was a world called "Industrialization".

Joseph waited for him to stop writing before continuing, "The Industrial Chain is the foundation of industry, but for industry to flourish, it also needs an ' Industrial Cycle '."

Simply put, it's a process of "funds - production - market - cash recovery".

"Actually, that's not entirely accurate. The true Qidian of industry should be the market, which drives production and then attracts investment..."

What he said is almost universally known in later generations, but only a little over a decade has passed since Adam Smith wrote "The Wealth of Nations," and he only put forward the most basic concepts of capital operation, far from the refined and practical ideas of later generations.

Joseph then elaborated on these issues in detail, and concluded by saying:

Therefore, for the industrial sector, the market is always the most important factor. As long as the market is large enough and the profits are high enough, no matter how great the other obstacles, the corresponding industry will definitely be able to develop.

Mirabeau frowned and said, "Your Highness, but France doesn't have many mines that need pumping water, nor does it have Automatic Loom... The market for Steam Engine seems quite small."

Joseph shook his head and said, "There are many markets that we need to explore."

"For example, everyone is currently using water-powered mills and water-powered presses. If these were all driven by Steam Engine, the efficiency would be greatly improved."

"Although we don't have many mines, we have a lot of farmland that needs irrigation. If each village had one or two Steam Water Pump, we could increase arable Farmland by several times. It would also reduce crop losses during the dry season."

"And the Press I mentioned earlier, which can be used in almost all metal manufacturing industries."

He paused, then lowered his voice. "Actually, the biggest shortcoming of our market is Purchasing Power."

"Purchasing Power?" Mirabeau just copied it down. He was already numb to new terms all day.

It refers to how much money people have available to buy products.

Mirabeau hesitated, then said, "Your Highness, the Nobility are still quite wealthy..."

Joseph was somewhat helpless; this guy had simply filtered out the vast majority of poor people.

"That's far from enough. If everyone—I mean, whether Craftsman or tenant farmers—had the money to buy industrial products, that would be what industrial development truly needs—a market!"

He thought to himself: To achieve all this, a very difficult reform is needed, because it will inevitably affect the interests of those Old Nobles.

Mirabeau was stunned, and after a long while, he nodded slowly but firmly. "You... you're absolutely right!"

The two chatted until 5 p. m., when Joseph felt that the basic industrial concepts had been covered and prepared to leave. "However, industrial development will have to wait. Right now, I need to focus on the Potato business. Only when everyone has enough to eat can we possibly develop industry."

Mirabeau immediately said, "Your Highness, are you referring to purchasing Potato? I have a friend who deals in grain and has a lot of business in the Northeast Provinces. I can ask him for help."

"I think if I act as guarantor, he should be able to help you purchase it on credit, or even transport it directly to your designated location."

Joseph was overjoyed. "That's wonderful! Thank you very much, Earl Mirabeau."

"It's nothing, Your Highness," Mirabeau bowed slightly. "I hope I can contribute to the great cause you have planned."

The following day at noon.

In the luxurious Villa of Paris socialite Lady Able, a salon is being held that was actually initiated by Mirabeau.

(End of this chapter)

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