Published: July 3, 2025
Today (June 27), this is the first part of the two-part posting.
It's a short interlude.
"The economy is deteriorating as planned. It's about time we consider economic stimulation measures..."
"It's still too early. If this document is to be believed, we should maintain the status quo through spring and then revert the tax increases as we enter summer. After that, we will observe for a while."
"Understood."
With that, the minister of finance left the emperor's office.
In his place, regent Count Hans Kirchhoff entered the office.
"Your Majesty, there is a matter I wish to report... Ah, I see you were discussing economic trends."
Hans said, looking at the documents spread across the desk.
Rupert let out a deep sigh and replied, "Leon is certainly not incompetent, but... as the minister of finance, he seems to always want a booming economy..."
"Well, that's something everyone in the Empire would wish for."
"Though it's practically impossible. If the economy overheats too much, it will burst... Once it bursts, there won't be a normal way to recover."
Rupert shook his head repeatedly.
"It's all due to that great war."
What Hans pointed out was the war between the Alliance and the Kingdom that took place ten years ago.
"During that war, we exported products that the Alliance couldn’t make, which led to an overheating economy in our Empire."
"The production capacity that decreased due to the war will recover after some time post-war. This applies to both the Alliance and the Kingdom. Meanwhile, our Empire has an excess production capacity. Honestly... we should wage wars that do not inconvenience other countries."
Hans could only smile wryly at Rupert's unreasonable grumbling.
"My heart aches at having to raise taxes to cool down an overheated economy... No one will understand that."
This time, Rupert spoke with a bitter smile.
"The economy of the nation may be beyond the comprehension of the common people."
Hans nodded slightly as he spoke.
"It would be great to always maintain a booming economy, but that's not feasible."
"However, I’ve heard that tax revenue has increased somewhat due to the tax hikes?"
"Hmph, tax revenue follows later. In three years, the economy will worsen compared to before the tax increase. The purpose of raising taxes isn't merely to increase revenue. It’s done to cool down an overheated economy. Once the economy cools sufficiently, we can lower taxes and initiate public works to return to a period of prosperity. That is how the nation's economy works."
Rupert sighed deeply and continued.
"Of course, there are several things that must be done while the economy is still bad. Until then, we cannot afford for the economy to recover."
"Is managing the economy really that simple?"
"Of course. This is a technique that has been established for hundreds of years. Even without knowing the techniques, anyone with a decent level of reasoning can understand it. If there is a country where the economy never recovers..."
"What if there is?"
"That means they are deliberately maintaining a state of recession. It's more convenient for certain individuals."
"Such individuals...?"
Hans couldn't think of anyone who would prefer a bad economic situation.
"Hmm? Hans, you sometimes miss the point... Look, there are those working for the country around here."
"Ah..."
"Yes, the bureaucrats and officials. Even if the economy improves, their salaries will hardly increase, won't they? But for the common people, especially merchants, their income will rise significantly. As the income of the populace increases, the salaries of those officials remain unchanged... that means they relatively become poorer. Therefore, they wouldn't want the economy to improve, would they?"
"Even though they are dedicatedly working for the country...?"
"That's a flaw in the system."
Saying this, Rupert finished the last of his coffee.
"So, Hans, you came to report something, correct?"
"Yes. Regarding the water attribute mage of the Kingdom that was mentioned the other day, I have new information..."