Since crossing into this world, Wang Yang had carefully observed the details of society. In conversation, he was skilled at steering the topic and drawing out information, and his habit of diligent thought and tireless reading had yielded considerable insight. Now that Yu Yi had asked, Wang Yang had no intention of holding anything back, both out of gratitude for Yu Yi's protection and because he still needed his help. He explained:
"Throughout history, two things have mattered above all else to state finances: population and land. In taxation, the former means population taxes-ah, the so-called head tax and household levy, one assessed per person and the other per household-while the latter means land rent. Together, these three taxes are called the 'three levies,' and they form the chief source of tax revenue. All three rest on agriculture, which is why every dynasty has made agriculture its foundation. There are two reasons for this emphasis: first, food is the people's heaven, so it cannot be neglected; second, state finances depend on agriculture, so it must be emphasized!"
Yu Yi's expression grew increasingly solemn. The other youths looked at Wang Yang as though gazing upon a celestial being.
Wang Yang looked thoughtful, his voice steady. "...Yet dependence on agriculture has its own drawbacks: land is finite, output is finite, and both depend on the whims of heaven. Thus, when state finances run dry, the only recourse is to raise taxes and rents. Higher taxes and rents become a burden the people cannot bear; when they cannot bear it, they rebel; when they rebel, troops are raised; raising troops means raising taxes; higher taxes drive still more people to rebel. The cycle repeats until everything rots away."
Everyone present listened with rapt attention, holding their breath without uttering a sound.
Thirsty from