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The large estates were lending grain to poorer farmers. These loans were important because they fed farming families between sowing and harvest months. But the estates charged a 100% interest rate, ensuring that these farmers would remain poor
The large estates were lending grain to poorer farmers. These loans were important because they fed farming families between sowing and harvest months. But the estates charged a 100% interest rate, ensuring that these farmers would remain poor
Wang's plan was for the government to correct this usurious behavior by lending grain at a 20-30% interest rate. Still very high, but a major boon to the livelihood of the peasantry.
Moreover, he proposed that the state reassess property taxes to end tax evasion.
Moreover, he proposed that the state reassess property taxes to end tax evasion.
Adding a security dimension to these reforms, Wang proposed that the government lend horses to poor farmers. This would increase their productivity. In return, these farmers would be responsible for taking care of them, and the horses would be collected during wartime.
Wang's "New Policies" addressed both the growing economic injustice and security threat to the empire.
But it infuriated the wealthy. The rising productivity of poorer farmers meant more competition for their estates. And government loans undercut their money lending business.
But it infuriated the wealthy. The rising productivity of poorer farmers meant more competition for their estates. And government loans undercut their money lending business.
There were some setbacks. The state had trouble managing the overwhelming request for loans - and often the bureaucrats succumbed to bribery.
Moreover, any setback in society - a drought or even a comet - was blamed on Wang's reforms. He was ultimately pushed out of court.
Moreover, any setback in society - a drought or even a comet - was blamed on Wang's reforms. He was ultimately pushed out of court.
The reforms floundered in Wang's absence.
The result was an increasingly impoverished society that was incapable of defending itself against threats from the north.
In 1125, the capital Kaifeng fell to the Jurchen.
In 1279, the remainder of the Song fell to the Mongols
The result was an increasingly impoverished society that was incapable of defending itself against threats from the north.
In 1125, the capital Kaifeng fell to the Jurchen.
In 1279, the remainder of the Song fell to the Mongols
Coming back to the present-day U.S., it's discouraging that our government is floundering in the face of a clear need for the government to act in the interest of economic justice and public health. It had been so gungho about tax cuts for the wealthy https://www.nbcnews.com/politics/congress/senate-republican-coronavirus-aid-plan-excludes-evictions-moratorium-n1235108
