Life of Being a Crown Prince in France

Chapter 113: Chapter 112: Industrial Chain and Market

Count Mirabeau savored the Crown Prince's words, simultaneously considering France's actual situation, his expression gradually turning solemn, "Your Highness, but currently the most advanced steam engine technology is in the hands of the British, and we can only copy their products from a decade ago.

"By the way, I heard that not long ago England created the latest steam engine, which has already surpassed the power of ten horses."

"You are correct," Joseph nodded, "That is why I want to quickly establish industrial development zones to attract capital and talent for the research and development of new technologies."

Count Mirabeau, somewhat disheartened, said, "I wonder if we'll still be able to catch up..."

A confident smile appeared on Joseph's face, "You must have faith. Our setback is only temporary.

"As long as we build the foundational industry chains and create positive industry cycles, technological breakthroughs are an inevitable result."

Count Mirabeau started to get confused again, "Your Highness, what do you mean by 'industry chain' and 'positive cycle'?"

"I spoke too hastily," Joseph said apologetically, waving his hand, "The so-called industry chain refers to a series of industries tied to the development of a particular industry, combined together to form a chain."

Count Mirabeau could play a significant role in advancing France's industrial development, so Joseph explained the related knowledge and concepts with patience.

"For example, we used to spend a lot of money to bring in British textile technicians to help us develop the textile industry, but after they arrived, they found even the simplest tools were unavailable, making it impossible to start work.

"These small tools are actually part of the textile industry chain. Similar to that, for instance, are the cleaning and storage of cotton and wool as raw materials, the manufacturing and repair of looms, the construction of workshops, the transportation and sale of products, and even the recycling of waste, and so on.

"Together, these form the industry chain for the textile industry.

"Only if the entire chain develops healthily can we have a strong textile industry. Originally, we neglected the industry chain, thinking that by acquiring a few looms, we could catch up with England's textile industry."

Count Mirabeau felt as if a cloud had been lifted, nodding repeatedly, "So we spent a lot of money, but the textile industry has always been tightly suppressed by the British. It turns out these trivial things behind the loom are what we lack even more!"

Joseph thought to himself that Mirabeau truly was a talent from the grand era, understanding with just a hint.

He continued, "So if we want to develop the steam engine industry, we must value the industry chain from the beginning.

"Starting with the most basic coal and iron mining and transportation, to the workshops that manufacture basic measuring tools, to those that print blueprints and documents, and then to building experimental test platforms.

"Gradually transitioning to the construction of workshops for producing small parts, foundries for machine rough casts, all the way to workshops that assemble entire steam engines.

"And finally, there are supplementary industries such as the sale, maintenance, and on-site assembly of steam engines.

"With these, we can truly say we have the capability to manufacture steam engines. Otherwise, even if we manage to replicate the latest British models, we will sooner or later be left far behind by the British again."

During Joseph's speech, Mirabeau had already had a servant bring paper and pen and was earnestly taking notes at great speed—these concepts were all new to him, opening a door to a new world.

It was a world named "industrialization."

Joseph waited for him to stop writing before adding, "The industry chain is the foundation of an industry, but for an industry to thrive, there also needs to be an 'industry cycle.'

"Put simply, it's the process of 'capital-production-market-recapturing capital.'

"Actually, this is not quite accurate; the actual starting point of an industry should be the market, which gives rise to the drive for production and thereby attracts capital investment..."

What he was talking about is almost universally known in later generations, but at the present moment, it had only been a little over a decade since Adam Smith wrote "The Wealth of Nations," which had only introduced the most basic concepts of capital operation and was far from the refined and practical ideas of later generations.

Joseph elaborated on these issues in detail before concluding:

"Therefore, for the industrial industry, the market is always the most important. As long as the market is large enough and the profits high enough, no matter how big the obstacles are, the corresponding industry will certainly develop."

Count Mirabeau furrowed his brow, "Your Highness, but France does not have many mines that require pumping, nor automatic looms... the market for steam engines seems very small."

Joseph shook his head, "There are many markets that we need to dig out.

"For instance, currently, everyone is using water mills and olive presses. If these were replaced by steam engines, efficiency would be greatly improved.

"Although we don't have many mines, we do have a lot of agricultural fields that need irrigation. If every village owned one or two steam pumping machines, the cultivated land could increase by a substantial percentage. This could also reduce crop losses during drought seasons.

"And as I mentioned earlier, the stamping machine can be used in almost all metal manufacturing industries."

He paused, switching to a somber tone, "Actually, our biggest lack in the market is purchasing power."

"Purchasing power?" Mirabeau simply wrote it down, numb to the new terms by now.

"It means how much money people have to spend on products."

Mirabeau hesitated, "Your Highness, the nobles still have a lot of money..."

Joseph sighed somewhat helplessly, as the Count had straightforwardly filtered out the vast majority of the poor.

"That's far from enough. If everyone, I mean whether they are craftsmen or tenant farmers, had money to buy industrial products, that would be what the industry truly needs—a market!"

He thought to himself: To achieve all this, we would need a very difficult reform, because it will definitely touch on the interests of the old nobility.

Mirabeau was stunned, slowly and firmly nodding after a long pause, "You, you are absolutely right!"

The two talked until five in the afternoon. Feeling he had roughly covered the basic industrial concepts, Joseph prepared to take his leave, "However, industrial development must be put on hold for now. Currently, I must first focus on the matter of potatoes. Only if everyone is well-fed can we think about pursuing industry."

Count Mirabeau immediately said, "Your Highness, are you talking about buying potatoes? I have a friend who operates in the grain business who has quite a few dealings in the northeastern provinces. I can ask him to help.

"I think, if I stand as a guarantor, he might be able to help you purchase on credit, and even deliver directly to the location you specify."

Joseph was overjoyed, "That would be wonderful! I am very grateful to you, Earl Mirabeau."

"It's nothing at all, Your Highness." Count Mirabeau bowed slightly, "I hope I can contribute to the great cause you have planned."

…

The following day at noon.

In the luxurious villa of Parisian socialite Lady Ebel, a salon was taking place that, in reality, had been initiated by Count Mirabeau.