novelAbuy Chapter 889 - 663: Year-end
Chapter 889 - 663: Year-end
In the end, the shipbuilding plan that included two battleships and nine aircraft carriers was approved.
After all, 50 million Australian dollars was not a significant expense for the current government, and with the cost to be spread over two to three years, it was even less of an issue.
If this could further strengthen the nation’s naval power, such a transaction was definitely worth it, and the Cabinet Ministers would not be unreasonable.
Minister Melon was worried about cuts to the budget of his Public Security Department, but once Arthur indicated that the funds for shipbuilding would be drawn directly from the national treasury and not reallocated from other departmental fiscal budgets, Minister Melon no longer objected.
With the addition of these two battleships and nine aircraft carriers, Australasia’s naval power could take another step up, becoming the third-strongest navy in the world, behind only the UK and US.
Of course, compared to other naval powers, Australasia’s navy composition appeared somewhat extreme, with aircraft carriers being the true main battleships, while the status and number of battleships had dropped to a secondary level.
Though this seemed odd, as other nations’ naval construction still focused on battleships, with aircraft carriers—converted from battleships and destroyers—only serving as auxiliary support.
But, if one had seen Australasia’s advanced airplane design, they would understand the reasoning behind making aircraft carriers the main battleships.
The technology Australasia had for aircraft carriers, especially if paired with radar, was already capable of dominating battleships.
The attack range of battleships was limited to the range of their main guns, whereas for aircraft carriers, it was the flight distance of the planes they carried.
Radar also allowed aircraft carriers to detect battleships before entering their attack range, and such a technological gap had already proven aircraft carriers’ superior combat strength over battleships.
While historically the significance of aircraft carriers surpassing that of battleships would still take some time, in present-day Australasia, the development of jet planes had already greatly advanced this timeline.
Aside from Australasia’s particularly keen focus on the development of aircraft carriers, other nations, including the UK who pioneered aircraft carrier development, did not place as much emphasis on them.
The UK’s current aircraft carriers, though progressed from over a decade ago, were limited by airplane technology, leading the British to believe that aircraft carriers’ combat capabilities would not exceed those of battleships, which they considered to be the most powerful warships in the world currently.
Although they were aware of Australasia’s previous Giant-class aircraft carrier design, they mistakenly believed, due to the lack of Australasian airplane technology, that Australasian aircraft carriers were also inferior to the strongest battleships.
This was the largest misconception that the British fell into, a misjudgment about the development of warships caused by airplane technology.
However, there was no helping it, as the true combat power of an aircraft carrier was determined by the capabilities of the planes it carried.
Even with the most advanced aircraft carrier design, if the planes it carried were decades old, it still wouldn’t compare to a decades-old aircraft carrier equipped with the most modern planes.
Of course, this is under the premise that the aircraft carrier can withstand the take-off and landing of more advanced planes, for if the planes couldn’t even take off or land, then it would be just for show.
Including this naval shipbuilding plan, the last few months of 1926 were a microcosm of never-ending construction and projects in Australasia.
This also made Australasia the most envied country in the world during the second half of 1926, attracting a large number of immigrants.
But the capitalists would not let them succeed, and the only end for these refugees was a forced drowning in the milky-colored lake.
The biggest good news brought about by the population surge was that Australasia’s infrastructure development no longer lacked manpower.
The 2.53 million immigrants created nearly a million laborers, who immediately joined the infrastructure industries of Australasia. This helped to keep the unemployment figures at a relatively low level.
Railway and highway construction, along with other infrastructure projects, progressed much more quickly due to the constant influx of labor. The country’s development soared, completely unaffected by the economic crisis.
Consequently, while the economies of other countries had dropped significantly during the economic crisis, Australasia’s economy remained at its existing scale without decrease or growth.
This was actually quite normal. Although imports and exports had been reduced due to the economic crisis, the boom in infrastructure brought about growth.
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With an increase and a decrease canceling each other out, the economy managed to maintain balance. This was quite an achievement during an economic crisis when the economies of many countries were drastically declining—a balance was unique.
However, the fiscal balance saw more significant changes. Because of the large-scale reduction in exports, Australasia’s total fiscal revenue also experienced a decrease in 1926.
The Benz Car Factory, a previous major taxpayer, paid less than 2 million Australian dollars in taxes last year, a more than 70% decrease compared to the previous year.
This caused Australasia’s total fiscal revenue to fall back below 200 million Australian dollars, reaching only 180.1 million.
In contrast, total fiscal expenditure experienced a substantial increase. Whether it was various infrastructure projects or the navy’s expansion plan, each was a gold-consuming beast with a costly fiscal budget.
In 1926, Australasia’s total fiscal expenditure reached 293.9 million Australian dollars, resulting in an annual fiscal deficit of 113.8 million.
Although the fiscal deficit was quite large, it was precisely these infrastructure developments that ensured the stability of Australasia’s economy.
Additionally, these projects provided enough income for the new immigrants, a key factor in attracting immigrants to Australasia.
Based on the current funds available to the government, a deficit of over 100 million Australian dollars per year could sustain the current government for about three years.
To cope beyond that would require other means, such as issuing national debt, or printing more currency, and so forth.
While such actions would devalue the currency, it was far better than the country being unable to afford to carry out infrastructure developments.
It’s just that Australasia’s economy has seen a considerable boost throughout its development over the past twenty or so years; otherwise, an annual fiscal deficit of over 100 million Australian dollars would not be sustainable for many countries.
Fortunately, Arthur’s Royal financial group could also serve as a safety net, offering loans to the government in times of need.
This was one of the benefits of Arthur possessing a high income. The monarch lending money to the government also increased the People’s goodwill since a monarch willing to lend personal funds to the government was rare indeed.@@@@