Da Tang: Father, can I resign?

Chapter 297 Li Shimin: Call me Grandpa

"Buddha said that form is emptiness. Cheng Qian, you are confused by the appearance of everything and you don't know what to do.

"But everything has a cause. As long as we can see through the complex colors and find the core cause, we can sort out the myriad thoughts and solve the cause and effect."

Li Shimin taught with a Zen-like tone:
"For example, the current 'cause' is that there are too many copper coins and too few physical goods, which has led to the 'effect' of commercial chaos.

"Then we just need to prescribe the right medicine, reduce the amount of money, and increase the amount of rice, flour, grain, oil and other physical goods, and we will be able to resolve Li Ming's offensive."

Ning's nonsense was so true... Li Chengqian took a deep breath, his voice trembling:
"Father is right, but there is one small problem -

"How can we reduce the amount of money and increase the amount of food?"

He was a little worried that Lao Li was not thinking clearly again, and was also worried that Lao Li was deliberately tricking him.

The government can control the minting of coins, but what can it do about how the people below use the money?
If he had such abnormal control over the people, would he have been beaten like this by Li Ming?
Li Shimin glanced at his eldest son and was not in a hurry to answer his question:

"Cheng Qian, in fact, the government has many ways to directly interfere with private wealth and commerce."

Li Chengqian patiently replied to his father's question, which seemed like a test:

"You mean taxes?"

"Yes, the solution lies in taxation."

Li Shimin patiently and persuadingly.

"If I remember correctly, the summer 'rent, labor service and tax' are going to be collected soon, right?
"This is a good opportunity to adjust the situation where there is too much money and too few goods in the market."

Rent, labor service and tribute were the basic taxation system of the Tang Dynasty. Rent and tribute were paid in the form of rice and cloth, and labor service referred to labor service. Both were taxes in kind when the monetary commodity economy was underdeveloped.

Now, the problem is obviously that the monetary economy is "too developed"...

"Hiss, yes!"

After being reminded to this point, Li Chengqian was a little confused and guessed:
"Father, you mean...

"This year's rent and labor service will not be collected in kind, but in cash?"

Li Shimin nodded in relief:

"That's right. If the government still follows the old system and collects grain and silk, the supply on the market will inevitably be less and the price will be higher.

“But if the government collected money, the peasants would be forced to go to the city, sell their grain and silk products in the east and west markets, and use the copper coins they earned to pay taxes.

"In this way, wouldn't there be more physical goods on the market, and wouldn't the circulating copper coins be concentrated in the hands of the government?"

Li Chengqian sipped it carefully:

"Taxes are collected in cash, and farmers sell grain, so the money goes down and the grain goes up...

"Great, great idea!"

Only then did he fully understand the subtlety of his father's work, and he couldn't help but walk forward excitedly, dragging his limping leg.

"Li Ming's evil plan can only harm the cities, while the countryside is self-sufficient and has few transactions. The amount of copper coins and the price of goods have little impact on the farmers.

"Father's method is to allow more goods from the countryside to participate in trade, so as to absorb the excess currency!"

Li Shimin nodded:

"That's right. It's not enough to just increase revenue, we also need to cut costs."

"Cut costs?" Li Chengqian became interested.

"Cheng Qian, let me test you again." Li Shimin asked with a smile:
"Where do all the merchants who spend a lot of copper coins and buy up goods in the market come from in my Tang Dynasty?"

"It's the Pseudo-Ming." Li Chengqian answered without thinking. After a while, he asked back:
"How does father plan to cut costs? Should we ban merchants from the pseudo-Ming Dynasty from entering the country to trade?
"I'm afraid it's difficult."

He was blunt in his statement.

Trade blockades are a thankless task.

First of all, this was definitely a stupid move for the Tang Dynasty that would hurt the enemy by a thousand and hurt itself by a thousand.

Because the cheap goods of the Ming Dynasty were so popular, consumers benefited from it and the government also received a considerable amount of tariff and commercial tax revenue.

The total volume of trade between the two countries is so huge that it is the livelihood of millions of canal workers. If it is cut off brutally, the Tang Dynasty might fall into chaos without a fight.

To take a step back, even if Li Chengqian could take control of the situation and suppress all internal opposition, he would not be able to completely block the trade between the two sides.

Life will always find a way.

The border of Chinese civilization is too long and the terrain is too complex. Under the limited conditions in ancient times, it was impossible to control smuggling.

The Han Dynasty stipulated that “no piece of iron could leave the country”, but it still could not control the outflow of ironware from the grassland.

Now that the border between the Tang Dynasty and the Ming Dynasty is longer and trade is more frequent, the actual effect of the blockade will only be worse.

Blocking trade at the official level will only make underground smuggling more rampant and make all attempts to regulate commodity prices go to waste.

After all, the government’s capabilities are limited.

Hayek's big hand will equally educate every old-fashioned person who violates economic laws.

"How could I advocate banning trade between the two places? The disadvantages far outweigh the advantages. And how can you ban it? That's certainly not my approach."

Li Shimin denied the eldest son's guess and patiently pointed out:

"Remember what I just said? It's still about using taxes."

The delicate tone was just like a father teaching his young son to ride a horse for the first time.

"Trade, taxation... Father, are you talking about tariffs?" Li Chengqian slapped his forehead.
"Charging high tariffs on pseudo-Ming merchants?"

"No." Li Shimin crossed out his son's answer again:

“If the commercial taxes are too high, won’t merchants resort to smuggling?
“Besides, Ming merchants can still withdraw goods from the Tang Dynasty and import copper coins through middlemen in the Western Regions and Southeast Asia, and the extra costs will still be borne by the people of the Tang Dynasty.

"Should we impose high tariffs on all foreign businesses?"

Li Shimin blocked Li Chengqian's idea of ​​starting a trade war.

"This won't work, and that won't work either. So how should I deal with this?" Li Chengqian gave up:
"Father, please make it clear!"

"The problem is that there is more money than goods. Isn't that simple? We can impose tariffs in kind!" Li Shimin said:
“If foreign merchants bring goods into our country to sell, we will not collect copper coins when entering the customs, but will collect taxes on their goods according to the tax rate;
"If foreign merchants take the purchased goods out of customs, the same thing applies. The goods they purchased can be taxed according to the customs duty rate."

This is almost the same as exchanging the rent and labor service, with the rent and labor service changing from a tax in kind to a monetary tax, and the tariff changing from a monetary tax to a tax in kind.

"This is..." Li Chengqian thought for a while, then realized belatedly:
“Encourage merchants to leave the goods behind and take the coins away?”

"That's right. And..." Li Shimin blinked cunningly:
"Besides, merchants like in-kind taxes, which saves them the trouble of selling for money. Trade is more prosperous, and they have to thank us."

In this way, all the excess copper coins were received by the court, and more goods could be circulated in the market of the Tang Dynasty again.

By using tax tools, the effect of controlling the flow of money and physical goods is achieved.

Li Chengqian pondered for a moment and couldn't help but clapped his hands and laughed:

"After all, he is my father. With just a few simple arrangements, he can resolve this crisis."

"When Li Ming was dealing with the cash shortage, I was there the whole time, so I was able to learn a thing or two from him," Li Shimin said without hesitation.
"The method for dealing with this cash shortage has been given to you. All that remains is to execute it according to the plan."

Li Chengqian bowed:

"Yes, father."

"Also, don't forget your promise just now." Li Shimin said excitedly:
"Give me the military power."

Li Chengqian paused.

Before he could answer, Li Shimin said:
"You can't use your troops like this now. Confronting Li Ming in the Central Plains will be very disadvantageous to you.

"The Central Plains is your core region, but not Li Ming's core region. If the situation in the Central Plains becomes tense, it will be very detrimental to your economy. If a war breaks out, it will be a loss you cannot afford.

"But Li Ming was different. His ruling core was in Liaodong and Goguryeo, and there were Qi, Lu and Hebei between him and the main battlefield."

Li Shimin commented objectively, ignoring his son's increasingly ugly expression:

“Besides, Li Ming’s governance level is much higher than yours.

"Even if you delay the fight, as time goes on, your strengths will weaken and you will definitely not be his opponent. Sooner or later, he will destroy you."

The truth is like a sharp knife. Li Chengqian was almost autistic after hearing the truth.

"However, as long as you are willing to obey my military deployment, I can help you break the deadlock and perhaps gain a chance of victory."

Li Shimin raised his eyebrows maliciously, like a profiteer selling some strange merchandise:

"How about it, do you want to listen?"

A look of confusion flashed across Li Chengqian's face. Finally, he sighed helplessly and bowed:

"Everything I have, even my body and hair, was given by my father. Is there any room for me to disobey?"

I felt very reluctant when I heard it.

However, Li Shimin, who had suffered a stroke, did not care whether his son was reluctant or not. He assumed that he agreed and immediately issued an order:

"Immediately gather all the warships in the country and collect all the ocean-going ships in the civilian sector." Li Chengqian was shocked:
"Father, are you going to fight a naval battle?"

"No." Li Shimin smiled mysteriously:
"Someone will fight for us."

…………

Li Chengqian walked out of his mother's dressing room and did not return to the study immediately. Instead, he leaned against the wall, breathing heavily, and calmed himself down.

He could hear a faint sound coming from the room, which was Li Shimin's ecstatic laughter.

"Li Ming, ha! I'm going to beat you until you kneel down and call me grandpa! You want the crown, right? You have to get it with your own ability! Haha!"

Pa... Li Chengqian held his forehead with his right hand, his heart in a mess.

His left hand was on his waist, where a dagger was hidden.

"Mei Niang, maybe not today... that old man is still useful..."

Li Chengqian murmured silently, his face twisted with confusion.

Yes, my father finally passed the throne to him and gave him a lot of advice.

But this did not prevent Li Chengqian from still regarding him as an enemy.

Because his father has been his shadow since he was a child, and the root of all his problems.

The bottom line is that the wise and capable emperor simply regarded his eldest son as a tool to inherit the throne.

Since childhood, he received too little fatherly love and too much and strict discipline.

A little kid whose mind had not yet matured was watched by a group of loyal ministers including Wei Zheng, Du Zhenglun, Yu Zhining, and Zhang Xuansu for twelve hours a day, and would be criticized for any "frank criticism" if he behaved in the slightest way.

Those were sharp words that could break Li Shimin's defense.

Under the special care of so many famous officials, one can imagine how Li Chengqian's childhood was.

Such education was bound to backfire. Li Chengqian's behavior began to become eccentric and absurd, and a deep rift arose between father and son.

If it were just an education issue, it would be fine.

Not only did Li Shimin not restrain himself, he also played a "stress test" on his own son, placing Li Tai behind Li Chengqian to chase and bite him.

This became the last steel bar that broke the camel's back, and directly led to the demise of the father-son relationship in name only.

The kind that cannot be repaired no matter how much you try to fix it later.

According to his plan, after returning to Chang'an and successfully ascending the throne, he had many ways to make this lifelong enemy "die naturally."

Li Shimin was already ill, so his sudden death would not arouse people's suspicion.

However, seeing my lifelong enemy become so pitiful and ridiculous...

Li Chengqian sighed and felt very complicated.

"Your Majesty?" Seeing the emperor leaning against the wall in a daze, the eunuch immediately came over nervously to support him.

Li Chengqian waved his hand impatiently:

"I have nothing to do. Go and call Ma Zhou over."

"Yes!" The eunuch left quickly.

In any case, Li Ming was under greater pressure, so he first followed Li Shimin's method and finalized this summer's tax policy with the Minister of Civil Affairs.

As for revenge, it can be delayed a little longer.

"Not today, Mei Niang, not today..."

Li Chengqian repeated in a murmur.

…………

"What? This year's taxes are paid in copper coins?"

When farmers across the Tang Dynasty received this news, they were stunned.

In previous years, the tax was collected in kind, but this year the tax is collected in cash. This is not just a change of habit.

The biggest problem was that many farmers did not have enough copper coins to pay the taxes.

Even people in some remote areas have never touched money in their entire lives.

Because the small peasant economy does not require transactions, food, clothing and daily necessities are all grown in the fields and woven with one's own hands. Occasionally, if there is a commodity that is needed, food and cloth can be bartered.

Now they were suddenly asked to pay, and they were confused.

Where can I find so many copper coins?
There is no other way except to sell the grain production.

The farmers were in a very depressed mood.

It is often said that "low grain prices hurt farmers", but this was not the case during the Zhenguan period when grain prices were cheap.

Because farmers do not use money and do not pay monetary taxes, they do not need to sell their grain, so whether the market price is high or low has nothing to do with them.

As a result, when Emperor Yongqing came to power, he forced the honest farmers to sell their grain in the market. I am afraid that we will experience the true meaning of "low grain prices hurt farmers"...

"Huh? Are food prices so high?"

However, when the farmers carried their grain into the city with their heads down.

They were greeted by city dwellers with shining eyes.

Before they could react, citizens driven crazy by high prices had bought up all their goods, leaving them and a pile of money, more than they had ever seen in their lives, in the wind.

Hiss... Your Majesty's new policy seems to be quite good...

The same situation also happens to merchants.

Every businessman has to pay tariffs and there is no escape from it.

Because merchants have to transport their goods to a unified market to sell them, and without customs clearance certificates, they are not even qualified to enter the market.

The Lifang system still has its unique functions.

For businessmen who are always short of operating funds, being able to offset taxes with goods is a great benevolent policy.

Farmers got money, merchants reduced costs, citizens got low-priced goods, and the government controlled inflation.

Under Li Shimin's visible leadership, resource allocation was more optimized.

Win-win!

…………

"That's Li Chengqian? That's an idea that Li Chengqian could come up with?"

While in Pingzhou, Li Ming frowned at the battle report.

Defeating the New Turks, capturing Qibi Heli, and throwing an inflation bomb at the Tang Dynasty.

Li Ming felt that he had a great advantage and could just attack after the opponent became chaotic again.

Unexpectedly, the Tang Dynasty adjusted its tax policy and effectively resolved Li Ming's monetary offensive.

Did the other side learn Keynesian macroeconomic regulation without any guidance?

"To give someone a taste of his own medicine... is indeed a brilliant idea." Fang Xuanling stroked his goatee in admiration.

Zhang Sun Wuji touched his chin in confusion:

"Although Cheng Qian is not bad, he doesn't seem to be such a genius..."

"I always feel that..." Li Ming tapped the table and looked at his left and right arms.

"I was slapped by my grandfather."

"Your Majesty means that this was written by Your Majesty... the Emperor Emeritus of the Tang Dynasty?" Fang Xuanling pondered.

Changsun Wuji was also a little confused and remained silent.

Wasn’t it said that Li Shimin had a stroke and was half paralyzed?

But apart from him, who else in this world can compete with His Majesty Li Ming in terms of civil administration?
At this time, Yuchi Xunyu came with a dark face and reported:
"Brother Ming, urgent news from Pyongyang, Pyongyang was attacked!"

What? Pyongyang?!
Changsun Wuji was stunned, and Fang Xuanling was even more surprised, standing there holding the hot teacup.

Lao Fang had been in charge of the Goguryeo homeland and presided over the work of overthrowing and taking over Goguryeo. He certainly knew the importance of Pyongyang.

That was the former capital of Goguryeo and the gateway into the northeastern hinterland from the east!

If there is trouble in Pyongyang, there is trouble in Northeast China.

There is trouble in Liaodong and there is trouble in Ming Dynasty!
"There's a fire in the backyard... Can I say that he is worthy of being my grandfather?" Li Ming couldn't help but smile bitterly.

(End of this chapter)