I Became A Black Merchant In Another World

Chapter 234: Auditing and Absolute Power (8)
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If one out of every hundred people is addicted to drugs, then simply punishing drug addicts severely could help reduce drug addiction.

If someone is caught trafficking drugs, they’re executed; if they’re caught using, they get 20 years in prison.

But, aside from those who are addicted to the point that they can't live without it, who would voluntarily touch drugs?

But what if, in a population of a hundred, there are ten or twenty drug addicts?

Can the same method still solve the problem?

‘Absolutely not.’

It’s not only physically impossible to regulate every drug addict.

At this point, drug addiction has spread beyond a few outliers, almost like an epidemic.

We need to find the cause of the epidemic and eliminate it.

The widespread corruption in the Visconti family is similar to this situation.

“We can’t eliminate all the corruption.”

Even in modern society, where all documents are computerized and the tax authorities can trace even a single coin, various forms of corruption are still being discovered.

However, the scale of actual corruption and bribery is still just the tip of the iceberg.

In the Tuscany Empire, where accounting has not even been computerized, eradicating corruption?

It would be quicker to colonize beyond the solar system.

“So, reducing corruption to a realistic level is the best we can do, right?”

The Duke nodded, acknowledging my point.

“You’re right. Even reducing corruption a little would greatly improve the finances of our family.”

The reason why the Visconti family, or rather, the entire Tuscany Empire’s officials, are so corrupt is not due to their personal characters.

It’s because the wages they’re provided with are unrealistically low.

Therefore, before we change the people, we must change the environment first.

“Why don’t you take this opportunity to raise the salaries of the officials? Their pay is unrealistically low right now.”

The Duke tilted his head in confusion.

“Even the family’s officials have their own estates and wealth. Plus, their pay isn’t that low. The finance minister alone receives 1,000 gold coins annually.”

1,000 gold coins annually, and since there are no taxes deducted from the salary, if you convert it to a monthly wage, it’s about 83 gold coins.

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Considering that an apprentice craftsman’s salary is about 5 gold coins and that peasants barely make half a gold coin (including food and other costs), it’s a huge salary.

However, the nobles spend a lot on maintaining their status.

‘But they can’t use all 83 gold coins just for themselves.’

“As Your Grace says, a salary of 1,000 gold coins annually is certainly not a small amount. But think about it for a moment. Do you really think the finance minister can keep all 1,000 gold coins for himself?”

There’s a huge difference between medieval administrators and modern office workers.

For instance, a modern office worker in the 21st century with an annual salary of 70 million won (including performance bonuses) would have all of that after tax deductions, directly deposited into their account.

No matter how high their position, they would only spend their salary on themselves.

However, medieval administrative officials, especially the high-ranking ones, are like walking teams, each of them.

If I’m the team leader of an accounting audit team, I have a team of about 10 staff members to handle the work.

When the salary comes in, I have to appropriately distribute it among the team members.

“At least half, if not 70%, of the salary should go to those who help with the work. Otherwise, the subordinates won’t be able to sustain themselves.”

“Although Cotina, the finance minister, owns his own estate, most of the income from that estate has to be shared with his subordinates. As the person handling the finances of the Visconti family, he has more power than a typical baron, but it’s still not enough to maintain his status.”

So, he has no choice but to receive numerous interest-free loans (bribes) from merchants and embezzle money.

Not being able to maintain one’s status is like a death sentence.

“With such little money, even an honest person would eventually resort to corruption.”

In Joseon history, even according to 21st-century standards, there’s only one person who didn’t engage in corruption: Admiral Yi Sun-sin.

Among the many stories, the most legendary one is when the minister Yi I, who was the chief of the administrative department, recognized Admiral Yi’s true worth and gave him an extraordinary promotion.

Before doing so, Yi I requested to meet with Yi Sun-sin one last time for verification.

“It’s inappropriate to meet with a personnel officer privately; it causes scandal.”

This was his response to a simple, non-scandalous meeting request, showing just how thoroughly he kept his integrity.

Apart from him, local governors in Joseon had a habit of taxing the people several times more than legally required.

They distributed “sujung” (legally accepted bribes) as gifts during holidays, and it was standard for high-ranking officials to supplement their insufficient salaries this way.

Otherwise, their careers in the bureaucracy would be in jeopardy.

“So, let’s use this opportunity to realistically increase the salaries. At least 2 to 3 times the current rate, and when you consider the amount embezzled, it should be 4 times as much.”

“That seems like too much...”

“Wouldn’t it be better than letting the officials embezzle piles of money from Your Grace, just to save a little on salaries? Instead, you could raise their salaries significantly, and punish corruption severely from that point forward. That would definitely yield greater benefits.”

During the Qing Dynasty, Emperor Yongzheng was deeply interested in why officials could not avoid corruption.

And he came to exactly the same conclusion I did.

“Ah, it’s because the officials don’t have enough money, so they resort to corruption!”

So, he raised their salaries to as much as 10 times, and sometimes even 100 times, the original amount, depending on their rank.

And anyone who continued to engage in corruption was executed without mercy.

Although the people hated the increased taxes when the “Yangnyeom” system was introduced, they would have greatly welcomed it after just a year.

In the past, if you earned 20 million won, you’d pay 1 million won in taxes and about 10 million won in bribes to officials.

After the system was introduced, they could settle for just 5 million in taxes.

“Your reasoning is sound, but is it enough with just that?”

“The reason why the officials in the Duke’s family are acting with corruption as they please is that a few nobles occupy all the important positions in the Duke’s family. Mix in some capable people from lower ranks and give them positions. Then they’ll start to feel threatened and become more cautious.”

I remember watching a documentary once.

There were fish that died as soon as they were caught, so they could only be sold dead.

Then one nobleman placed a single predator into the tank.

The fish, though dying, swam desperately to escape, and as a result, most of the fish were saved and could be sold alive.

I believe society works in a similar way.

‘Once the vested interests become entrenched, corruption inevitably follows.’

This simple logic is why the caste system was abolished as an inefficient system and democracy was introduced.

Although there are still invisible caste systems in modern society, at least high-ranking officials no longer collect ridiculous taxes from the people and earn exorbitant salaries like in the past.

Back in the days of the caste system, that was the norm.

“Looking at it this way, it’s also why His Majesty values you so much. So, these days, the legal nobles are desperately trying to gain His Majesty’s favor. I can’t see why I shouldn’t do the same. Did you foresee this when you were conducting the audit?”

“Yes, that’s correct.”

“And so, the talented people you’ve touched will be the ones to take those positions.”

The Duke seemed a bit wary of me.

“But in the end, we’ll have to drink from the same cup. After all, you and I are already in this together.”

I had no intention of destroying the Duke’s family.

Of course, if after my father-in-law, the Duke touches the Rothschild family...

No one can guarantee what I’ll do then.

“But I do have a question. What happens to a family like ours, where we do an audit but don’t raise the officials’ salaries?”

“The accounting books will become much healthier. But I would still recommend following my suggestion.”

A cornered rat will even bite a tiger, and corrupt officials who can’t be stopped will become more active and find even better ways to drain the country’s wealth.

If left unchecked for 4 or 5 years, that family will rot from the root.

And our Rothschild family...

‘We’ll just devour the profits they’re selling.’

Do you think I’m crazy for training accountants?

“... Tomorrow, I’ll call in the vassals, tighten discipline, and at the appropriate time, start raising salaries bit by bit. And I’ll spread the word about our family’s practices, encouraging all the families within our faction to undergo audits.”

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