MENTAL MODEL · M12747

Green Sprouts Policy

StructureHigh supportLogic

Included

Version 1.0.0 · Updated 2026-07-30

CORE DEFINITION

During the period when the old crop is exhausted and the new crop is not yet ripe, the government provides low-interest loans to farmers, who repay the principal and interest after the autumn harvest. The aim is to combat usurious landlords. The logic of an overt scheme: national financial inclusion. Leveraging the state's capital cost advantage to squeeze out the private usury class, while increasing state revenue.

SCAFFOLDING EFFECT

psychology

Reduce cognitive load

Supply chain finance. Core enterprises (such as JD.com and Alibaba) use their own credit to provide low-interest loans (green sprout money) to small and medium-sized merchants within their ecosystem. This not only combats external usury but also binds merchants' loyalty and locks the ecosystem within their own closed loop.

anchor

Anchor fast decisions

The Green Sprouts Policy was a reform during Wang Anshi's tenure in the Northern Song Dynasty. The government provided low-interest loans to farmers during the green sprout season, with repayment after the autumn harvest, aiming to curb usury and increase fiscal revenue. However, its implementation often deviated from the original intent.

MINIMUM ACTION

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Practice this model in one real situation:

Government provides credit during the period when the old crop is exhausted and the new crop is not yet ripe
Set a relatively low interest rate
Forced or apportioned implementation leads to distortion
Evaluate the dual nature of benefiting the people and raising revenue.

Check to track your progress (stored locally)

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Source support: Explicit

link
zh.wikipedia.orghttps://zh.wikipedia.org/wiki/%E9%9D%92%E8%8B%97%E6%B3%95ZH · Explicit
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