The Emperorâs office in the Imperial Castle of Marcdorf, the Imperial Capital of the Debuhi Empire.
Two people were invited there.
One was Count Hans Kirchhoff, a regular of that room.
The other was a young man who was present for the first time. By all accounts, he was nervous and tense.
âAh, youâre here? Iâll be done soon. Have a seat there and wait.â
The owner of the room, Emperor Rupert VI, repeatedly checked and signed the documents at his office desk, urging the two who came in to sit first and wait.
That said, they couldnât sit at the table before he did.
Even Hans, a regular in the room, stood in front of a chair and waited.
The nervous young man also waited while standing beside him.
âI told you to take a seat.â
Rupert came to the two with a slightly bitter smile.
At the same time, the chamberlain brought coffee for three.
When Rupert sat on the couch, they finally sat opposite him. Coffee was then served.
âBlue Mountain Coffee from Twilight Land finally arrived yesterday. Kingdomâs Kona is good, but this is pretty good too.â
Saying that, Rupert reached for the cup, enjoyed the scent for just one breath, and sipped.
The other two reached for their cups and brought them to their mouths too.
The aroma of coffee drifted in the air and a relaxing time passed.
A day before.
That day, Lorenz Kush was in a panic from the morning.
Yesterday evening, he was called to Count Hans Kirchhofâs office and told.
âTomorrow, we will visit His Majesty the Emperor. Please convey your thoughts to His Majesty.â
âDi-directly to His Majesty âŚ?â
âYes. His Majesty told me to call Lorenz. He wanted to explain once. Please try not to appear rude.â
He couldnât say âI canât do it âŚâ.
He wanted to say it from the bottom of his heart.
No, he wanted to scream from the bottom of his heart.
âI canât do it. Please allow me to report in writing.â
But all he was told was a decision.
Lorenz shouted from the bottom of his heart instead of âI canât do itâ.
âWhy is this happening?â
To the general subjects of the Empire, Emperor Rupert VI gave off the image of âdreadâ.
One of the reasons was that since he ascended to the throne in his twenties, he mercilessly purged and reformed many aristocrats in the Empire and annexed the small nations that existed to the west and north of the Empire.
Furthermore, high-ranking bureaucrats and ministers working in the imperial capital suffer âdamageâ from being directly rebuked by the Emperor and were subject to greater âdreadâ than ordinary subjects.
Of course, the rebuke is not unreasonable, so it is seen as a symbol of talented vassals like Hans âŚ
Such a âfear-inspiringâ person was seated in front of him and he had to escalate his issues to that person.
Of course, he did ask Count Hans Kirchhoff to escalate to His Majesty the Emperor, but ⌠it was a written report and he never intended to say it directly to the Supreme Emperor âŚ
âWell then, Lorenz.â
âY-yes!â
Rupert smiled bitterly at Lorenz, who was visibly tense.
âI thought that drinking coffee would ease your tension a little, but ⌠I guess it was a miscalculation.â
Rupert gently said as he faced Hans.
âBecause His Majesty is fear-inspiring âŚâ
Hans shook his head and said with a bitter smile.
âFear, huh? That is a necessary image for an Emperor, but itâs a hassle in situations like these. Okay, Lorenz, I promise. No matter what you say here, I will not punish you for it.â
âYe ⌠yes âŚâ
Nothing changed.
âHans, itâs not working. Lorenz remains nervous.â
âThat appears to be the case.â
Thereâs nothing I can do about this ⌠Hansâs expression said it all.
At this point, Rupert decided to find a clear solution.
âOkay, Lorenz. Didnât you come because you are worried for the people?â
That sentence brought Lorenz back to normal.
Right, he decided to appeal for the people who complained that life was difficult in the city.
The reason for the pain is clear.
Because the economy is bad.
Of course, there isnât a daily shortage of food.
There are people in such a terrible state ⌠but not many.
Government-supported soup kitchens are offered so there are no reports of death from starvation.
That wasnât the issue.
A bad economy deprived people of their feelings about the future.
A bad economy deprived people of the hope they have for the future.
A bad economy ⌠disturbed peopleâs hearts.
It was widespread in the Imperial Capital. And not only in the capital, but throughout the Empire.
That is why they must take measures to recover the economy. Thatâs why he came here!
âYour Majesty the Emperor. The people are exhausted. The economic downturn is prolonged and the human heart is hardened. We should take measures to recover the economy immediately.â
He then offered the bundle of paper he brought.
A list of economic measures that could be taken immediately, the effects of each, the time and cost required, and the details were summarized.
Rupert received them and read.
He read them all with satisfaction; all of them were perfect proposals.
âHmm, these are great.â
âTh-then!â
âBut at this point, I canât allow these policies to be implemented.â
âWhy!â
Lorenz shouted, forgetting his position and location.
However, he quickly regained himself.
In front of him was Emperor Rupert VI, who held absolute power.
Not a person to scream at.
âI had you come today to explain that.â
Rupert said, drank the last of his Blue Mountain, and began to explain.
âFirst of all, the current recession is maintained as a policy.â
âEhâŚâŚâ
Lorenz doubted his ears.
âWh-what do you mean?â
He could only say that. It was completely incomprehensible to him.
âThis is because Lorenz is a finance bureaucrat ⌠thatâs right, do you remember what the economy was like seven years ago?â
âYes ⌠It was a good period of prosperity. Not just in the Imperial Capital, but throughout the Empire âŚâ
âThatâs right. Do you know why?â
With just a short pause to think, Lorenz opened his mouth.
âI suspect it was caused by the âGreat Warâ.â
âThatâs correct.â
Rupert nodded happily, looked at Hans and said.
âHans, isnât he more talented than you?â
âYes, yes, as His Majesty says.â
Hans replied and shrugged.
Lorenz was the one who was uncomfortable.
âNo, thatâs definitely not the case âŚâ
âLorenz, you donât have to be humble there. So Your Majesty. To be exact, what was the cause of the Great War?â
âWell, to put it simply, the Handal Union and the Kingdom of Knightley went to war. Both lost production capacity in various fields as a result of the destruction of many workshops and trading companies. Even after the war, naturally, the destroyed workshops and the raw material procurement network could not be so easily restored. Therefore, most of the supplies needed were imported from our Empire. Furthermore, the tools used for manufacturing were also imported from us. From the perspective of our merchants, a new market had suddenly emerged, so it was natural that the economy would improve by increasing production and sales.â
âThat is true.â
Hans nodded and reached for his cup.
However, he was disappointed to find that it was already empty.
A butler appeared with refill for his coffee at the right moment.
A full face of joy appeared on Hans.
Rupert explained as he glanced sideways at Hans.
âLook Lorenz, at Hansâ face. Do you think thatâs the face of the people in good times?â
Lorenz, who couldnât disagree with that, just replied, âYesâ or âYou are rightâ.
âThatâs why our Empire is in recession now.â
âEh?â
âIs it possible to drive people with such happy faces, that is, people who are experiencing a good economy, to the battlefield?â
Emperor Rupert went on to say more.
âWar cannot happen when the economy is good.â
âWha âŚâ
Lorenz uttered no reply to Rupertâs words.
In other words, Emperor Rupert VI was about to wage war. Thatâs why they were in recession âŚ?
âLetâs return to the story. A new market had emerged and the economy improved, but that market will eventually end. Do you understand?â
âYes. If both countries recover post-war and new workshops and trading companies are established, there will be no need to import from us. Our workshops, equipment, and tools that had been increased to cope with the increased export to the Union and the Kingdom, or the newly hired citizens, they will all be under-utilized âŚâ
âThatâs right. What happens when the economy, experiencing such a good run, suddenly encounters decreased demand in the market? It will become a terrible recession. A certain group of people calls it âthe bubble burstâ. Panic will cause the good economy to burst. But, well, thatâs fine too. The point is we needed to shrink the economy that had been so good before it could burst. Thatâs why our Empire launched a big tax increase five years ago. To cool the economy that had become too hot.â
âThen, even now âŚâ
âYes, but if we had left it to the economy without raising taxes, the current recession would have been even worse.â
Rupert took in the aroma of his newly refilled Blue Mountain.
Lorenz ruminated in his head on the explanation he was just given.
âIn the first place, the tax increases were not done to increase tax revenue. They were done to cool the economy. So, on the flip side, when the economy improves, I will naturally reduce the tax.â
âI seeâŚâŚâ
Lorenz nodded to Rupertâs explanation.
âFirst of all, I have to acknowledge that perception there. The tax was raised to increase tax revenue ⌠many incompetent politicians do that âŚ. Even some of my Imperial aristocrats conduct such idiotic policies in their territories. Itâs sad.â
He found it deplorable and Rupertâs expression was mocking those who were doing it.
âYour Majesty, so what should one do if they wish to increase tax revenue?â
Hans asked with a grin while drinking Blue Mountain.
He knew the answer, but it was a question to move the conversation.
âNaturally. Itâs to improve the economy. When the economy is booming, tax revenue will increase ⌠I hope anybody can recognize that? So if I truly want to increase tax revenue, I should just boost the economy. The fundamental part to boost an economy is the tax cut I mentioned earlier. That alone will have a reliable effect, but it will take time for it to take effect.â
Rupert looked at Lorenz and asked with a chuckle.
âLorenz, what does it mean to have a good economy and a bad economy in the first place?â
âYour Majesty ⌠the question is too vague âŚâ
âWhat happens to the circulation of money when the economy is bad?â
âThat I understand. The circulation of money slows down.â
Lorenz answered with confidence.
While listening to the side, Hans nodded.
âThatâs right. A bad economy isnât about not having money, itâs about not spending money. Well, many citizens will be out of money because their income declines. So, to improve the economy, the Empire has to spend money nationwide.â
âThatâs why Your Majesty commissions public works.â
Lorenz replied with confidence again.
While listening to the side, Hans nodded even more. In his hands, of course, was Blue Mountain.
âThe citizens and companies canât spend money if they are in the red. That is why the Empire takes the initiative in moving the economy with money. The Empireâs balance sheet ⌠throw those who talk about that to the civilians. Those groups who only focus on the Empireâs finances. The balance sheet will be negative, but the people need it ⌠Thatâs why the Empire does it. If they want to have a profitable business, ask them to create a company.â
Rupert shrugged his shoulders.
âThen, what if there was a country where the recession had been going on for a long time? What happened?â
Rupert looked closely at Lorenz and said.
âIn other words, for some reason, they âintentionallyâ extended the recession.â
âCorrect. As I mentioned earlier, the reason why our Empire is in a recession is to start a war. Iâm sorry to the people, but various timings overlapped and it is how it is now.â
âWar when the economy is not good âŚâ
âAs I said earlier. The economy is bad because money isnât circulating. Many people, including the Empire, arenât spending money. Thatâs why consumption is falling. For countries, what is the biggest expenditure?â
Lorenz tilted his head, but couldnât find the answer to that question.
Instead, Hans answered.
âItâs war.â
After being told, Lorenz suddenly realized.
Nation-wide mobilization increases consumption of all industries, even to the point of reducing production capacities for non-essential items.
That is war.
âYes. Of course, the annexation of small countries in the north and west that our Empire has done so far is not war. Given the economic scale of the Empire, it is at most a conflict or skirmish. Itâs no different from a large-scale military exercise. It doesnât affect the economy at all.â
âIn other words, the opponent this time is âŚâ
Lorenz held his tongue.
He felt that he shouldnât say any further even there.
âWell, itâs still a few months away, but if the consumption behavior of âwarâ is carried out ⌠will the economy recover?â
âYour Majesty ⌠must we really start a war?â
Lorenz couldnât help but ask even though he understood it was outside his job.
âYes, we must. Itâs not just for one or two reasons. There are many other reasons that canât be solved by other methods, such as diplomatic negotiations.â
The subsequent muttering of Rupert did not reach their ears.