削藩均田，反垄断打财阀。关键社会资源绝不容许任何家族或个人霸有，还给国家和百姓。
This was the first great debate on truth 2,000 years ago, and it still affects us today.
In 81 BC, the sixth year of Emperor Zhao of the Han Dynasty, an unprecedented ideological confrontation took place in Chang’an City, the Salt and Iron Conference. One side of the debate was the empire’s chief finance minister, Sang Hongyang. On the other side was Confucian representatives supported by General Huo Guang. The exciting and heated debate on the scene was recorded by a man named Huan Kuan and became a wonderful book that has been passed down to this day, The Discourses on Salt and Iron.
Why did this debate happen? And why is it called the most important meeting in the 2,000-year history of the Chinese empire that still affects us today. Some people even say that if you understand Sang Hongyang’s Query, you will understand Chinese history. The Query of Sang Hongyang has been a debate spanning 2000 years.
On February 12 of the lunar calendar in 87 BC, Emperor Wu of Han, who had ruled the Han Empire for 54 years, came to the end of his life. Knowing that he had not much time left, he urgently summoned Huo Guang, Sang Hongyang and other loyal ministers. During the 54 years of Emperor Wu’s reign, he attacked the Huns in the north, conquered wantonly, opened up the Western Regions, and expanded the territory, but frequent wars and extortion also made the subjects of the empire unable to make ends meet. There was a faint scene of the end of the Qin Dynasty. Therefore, in his later years, Emperor Wu of Han issued a self-criticism edict, deciding to rest with the people and stabilize the situation.
He made Huo Guang the chief regent. Huo Guang assisted Liu Fuling, who was only 7 years old, just like Duke of Zhou, Ji Dan assisted Emperor Cheng of Zhou, and let Sang Hongyang, a renown financial official, continue to control the empire’s finances. He believed that the sincere cooperation of the court would follow the established policies in his later years.
Two days later, Emperor Wu died. Liu Fuling succeeded to the throne and became Emperor Zhao of Han. After Emperor Wu’s death, Huo Guang had long had opinions on the various economic policies led by Sang Hongyang. He had hoped to adjust some economic policies, but was opposed by Sang Hongyang. So under the secret support and promotion of General Huo Guang, the calls for the abolition of the national salt, iron and wine monopoly policies became increasingly strong between the court and the public.
One day in the sixth year of Emperor Zhao of Han, in the court of the Weiyang Palace of the Han Dynasty, a debate was held on whether the salt and iron industry should be opened to the private sector for free competition or continue to be a state-owned monopoly. The two sides held a meeting that lasted for half a year, The Salt and Iron Conference. The Confucian scholars who demanded to abandon the monopoly and improve people’s livelihood threw out three sharp knives at the beginning. First, the court’s state-owned system of salt and iron industry caused an absolute monopoly, with high prices, poor quality, forced buying and selling, and major drawbacks. Second, the forced purchase of grain to establish reserves caused collusion between officials and businessmen, soaring prices, and a depressed private economy, which would only compete with the people for profits. Third, the comprehensive control of the economy has formed a large number of corrupt and powerful forces who intercept private interests in the name of state-owned enterprises.
In Sang Hongyang’s view, these people had no experience in governing the country. They could only raise questions but could not propose any solutions or innovations. So, Sang Hongyang also issued out three questions. First, the fiscal expenditure required for the operation of the state could not be met with only the insufficient agricultural taxes alone. If the government monopoly system is not implemented, how can the empire be maintained? Second, once there is a war, natural disasters and other urgently needed additional expenses, the treasury is empty. It is bound to inspire civil unrest. If you don’t compete with the people for profit, where will the money come from? Third, if the central government does not control important financial sources and resources in its hands to form an overwhelming force, what should we do if regional local forces expand their strength and rebel against the central government? This is the famous Query of Sang Hongyang. Not only did it make the Confucian scholars at the Salt and Iron Conference speechless but push them into a situation that they could only talk about other things. Even those who refuted Sang Hongyang in generations and dynasties afterward, such as Yang Xiong, Sima Guang, Liu Shipei, etc., could not answer this question substantively.
Strengthening the country vs Enriching the people. This is the recurring dead cycle of imperial history.
In fact, Sang Hongyang’s query can be summed up in one sentence: you can’t have both strong country and prosperous people. If you don’t maintain a high degree of control over the national economy, how can a centralized empire be maintained? Compared with the lives of the people, what is benevolent governance and benevolent care, this is the dilemma that all rulers of the country must face. As the historian Huang Renyu said, the operation of this empire has never relied on law, authority, figures, and administration. The emperors of all dynasties have never let the people possess wealth but have tried their best to weaken the people and expand the central government with various high-sounding reasons. The decline of the private economy has made us unable to get rid of our identity as an agricultural country. In turn, this strict control of the people has made government centralization more stable.
For more than two thousand years since then, the fate of almost every dynasty has officially depended on the emperor’s answer to this question. Emperor Wu of Han took the route of strengthening the country. The court was strong and invincible with the strength of the whole country. But the people’s industries were depressed. From officials and gentry to the people, they were exploited and plundered at all levels. Atrocities suffered from poverty. The court eventually fell due to a popular uprising. The prosperous Tang Dynasty took the route of enriching the people, abolished regulations, and decentralized power to regional local areas. Therefore, commerce thrived, the economy was prosperous, and the people were rich. However, the court had problems with expenditure, financial constraints, arrogant merchants, and inflated officers and soldiers. Finally, the Anshi Rebellion broke out, and the Tang Dynasty declined from prosperity. The country was divided into local vassal states, and the people suffered from war. The court eventually fell due to warlords.
When the country is strong, the people will rebel, and when the people are enriched, the country will get into chaos. This is exactly the vicious circle that Sang Hongyang asked. Throughout the Qin, Han, Sui, Tang, Song, Yuan, Ming and Qing dynasties, all dynasties could not escape the collapse of the prosperous era and the brilliant disaster of the country’s demise. Under the imperial system, the monarch’s diligence or incompetence, recuperation or ostentation, although the process is different, but the result is the same. As Zhang Yanghao said, “When the country is rising, the people suffer. When the country perished, the people suffer.”
The essence of political science is actually the science of interest distribution. The essence of a politician is an interest distributor. If you want to understand China’s economic system, I strongly recommend you to read this classic book, The Discourses on Salt and Iron. If the Book of Shang Yang is the origin of the art of ruling and the art of controlling people, then The Discourses on Salt and Iron is the origin of fiscal economics.
After reading this book, you will understand why we only use the market economy in our country. But we will never develop an economic system like the West.
The discussion between the Legalists and Confucianists about state-owned monopoly and free economy started 2,000 years ago. If you understand the Discourses on Salt and Iron, you will understand that our economic system is actually operated by three levels of capital embedded in three levels of markets. In fact, politics dominates the economy and the state dominates the market in our land. It is different from the West, and many people cannot understand it.
After reading this book, you will understand that this system was formed more than 2,000 years ago. Everything has changed since then, but the main core has not changed. This book is the foundation for the formation of China’s political and economic system. It is the root. It also explains the operating principles of wealth.
Wealth lies in tactic and figures, not in hard work; profit lies in the situation and trend , not in hard work. Classics like this are very helpful for us to establish the most basic cognition and framework for understanding politics and economy.