Chapter 63: Industrial Chain
d out the interest was so high. With principal and interest, I have to repay three hundred wen! Before tonight, if I can't raise enough, they will take Guiying away...""Yang Lin, I only have one daugh...Yang Lin nodded. "You're right. I calculated the data carefully. If it's only like this, we won't make a profit or a loss, just wasted our time."
But, don't you remember what I said about the house fund
"Are you saying… interest"
Li Yuyao is intelligent and perceptive, understanding things quickly.
"That's right, interest is the most important source of income for real estate projects!"
As for these simple folk, to use such tricks on them, Yang Lin's heart wasn't feeling good either.
But there's no way around it, being rooted here, if you want to start, you have to firmly plant your feet.
The housing project in Koshantun Village is crucial, as it marks the beginning of this major industry and serves as an experiment.
The unique environment means that even though I feel reluctant, I can only sacrifice my "compatriots" to commemorate the first step into the real estate market!
Every time he shouted "fellow countrymen," he would think of those e-commerce livestreamers from his past life, who passionately yelled "family" in the live broadcast room.
Facing these impoverished people, using these schemes, Yang Lin himself felt uncomfortable. But wanting to develop and move forward, while upholding his own bottom line, he had no choice but to act as a cunning businessman in Dagan!
"But, you only take one point of interest, this interest isn't high at all"
Li Yuxiao still couldn't quite understand.
Nowadays, in the Grand Reign era, there are no regulations limiting lending interest rates.
In folk lending, rates of two to three percent are common, and those of five or six percent are not uncommon.
Otherwise, how could those villagers who borrowed money have been unable to repay it and were forced to sell their land
So Li Yiyong didn't understand, what Yang Lin did with the house building fund, only one point of interest, how much profit could it make
Yang Lin shook his head and said, “My wife, a fraction of profit may seem insignificant. But have you ever considered what it would be like ten, twenty, or even thirty years from now”
Li Yuyao silently calculated for a moment, and was instantly astonished!
Before, when Yang Lin was talking to the villagers, he didn't calculate in detail. He just heard the final result that the monthly mortgage was about forty wen. This made her feel that the number wasn't much.
Upon closer inspection, he was astonished by the result!
The original loan was three hundred sixty wén. With twenty years of interest, it reached double the principal, a total of seven hundred and twenty wén!
This is not even the algorithm of interest compounding. Originally, three taels and six coins of silver became ten taels of silver!
Li Yuxiang gasped in shock.
To build a house and actually make a profit of seven taels of silver!
If the whole village builds more than two hundred houses, they can earn over two thousand taels of silver!
"So dark!"
After a long time, Li Yuyao finally uttered these two words.
Yang Lin nodded in agreement: "Yeah, it's really damn dark!"
"So, you came here because of guilt" Li Yunyao asked.
Yang Lin shook his head, saying with bitterness, "This is just the beginning."
"Just the beginning"
Li Yuyao was surprised.
If it's just about making some money from them, that's fine. After all, the price I offered them was indeed low, and they still made a decent amount of money working for me. Every month, whether they pay forty or eighty wen in mortgage… it's not much really.
"Why is that" Li Y Yao didn't understand.
"The greatest meaning of building a house is to tie them all to my battleship!" Yang Lin let out a deep breath.
Li Yuxiang still doesn't understand.
Yang Lin, however, changed the subject and said, "Landlords monopolize farmland and exploit the common people, which is truly despicable. But do you know who is even more hateful than landlords"
Li Yuxiang subconsciously shook her head.
"He is a capitalist!"
"Capitalist... " She had never heard that word.
Yang Lin, of course, knew she didn't understand. Because in Dayuan, the capitalist system was only in its infancy, nothing more than lending money at high interest rates.
The people of this era cannot imagine how terrible it is to be controlled by capital!
"Capital, in simple terms, is money. Money is used to control everything!"
"How can I control it"
For example, when everyone helps me with work, they earn money, save money, and their lives get better and better.
One day, their lives really got better. It didn't matter if they continued to work for me or not, so what should we do
Li Yuxiang thought for a moment: “Raise wages”
Yang Lin smiled and said, "The more their wages increase, the better their lives will be. When their material conditions are met, they lose the motivation to make money, so they still have no need to work hard."
He might be in a good mood and come to work for a while. If he's not feeling well, he won't come to work, and he may not even care about me as his boss, because regardless of whether he leaves me or not, they will do just fine.
What should I do in this situation
Li Yuxiang shook her head in confusion.
Yang Lin's words she could understand, but she felt that there was something mysterious hidden within them!
"In this situation, we can only create demand!"
For example, like building a house.
"Does it really matter if people live in mud huts or brick houses"
But now I've created a demand for them, something they couldn't have afforded before, but now they can overspend their future!
"
Overdraft... the future
"
Li Yuxiang, reading these words, always felt a shiver down her spine.
"When ten taels of silver are placed before you, you would find it to be a lot."
But when it's only forty cents a month for twenty years, it doesn't seem so bad.
"So the biggest problem comes, now everyone can earn five cents every day, but what if one day they can't earn it anymore"
Li Yuyao was dumbfounded and unconsciously shook her head, repeating Yang Lin's words: "What can we do"
She had a vague understanding of everything Yang Lin told her, and she felt like she had opened the door to a brand new world!
They have overspent the future, so they have to work hard, they have to work, they have to work for me.
“And in this process, we continue to create needs, and they can forever only be swept up in them.”
"This is a capitalist!"
Li Yuxiang sat there in a daze.
She never expected the truth to be so brutal, she felt as if she had been struck by a silent, invisible blade!
"Despicable!"
After a long silence, Li Yuyao could only manage to utter these two words.
Recalling what Yang Lin had said, she even felt a chill down her spine.
Yang Lin smiled: "But rest assured, I won't be a local tyrant, nor will I be a capitalist. At most...I'll just be a cunning merchant."
"This time, the experiment in our village is priced very low. As long as everyone works here, the cost of building houses won't be a burden for them."
"I'm guilty, I only pushed open this big door! Since the door is already open, it must be me who controls it, and doesn't let ghosts or monsters get in."
"This step must be taken, because only then can we drive the development of our entire industrial chain in sync!"
"Supply chain"
Li Yuxiang heard another new term.
"Are you talking about bricks and mortar"
"Not only that! There's steel, cement, even glass and furniture... anything related to life can be incorporated into this industry chain in the future!"isma.Truly stunning!After the shock, Du Jing didn't just sit around, he stayed and helped with the work.In the evening, Yang Lin was back in the village. He bought an abandoned house that had been idl...