The Economy [1] - PEACETIME

Day 2,630, 02:36 • Published in Russia Bulgaria • by kevvek
Day 2,630

Peacetime/Practice-War Economy

During this period, weapon production is only necessary to improve the economy and not to defend the country. The overproduction of excessive weapons will result in lower value since everyone will want to sell their produced weapons, creating competition and forcing the prices to dip massively. The demand for the weapons, however, is very low because at this peaceful stage weapons are not used as much. This highlights the importance of "training wars" with our allies. The objective is not to invade one another, but to create war zones for people to use the over-produced weapons, creating a good demand for the amount being supplied.

During peace, taxation on weapons should hence be higher than it currently is. Not too high, or eRussia will lose its competitiveness with foreign markets. Another factor that weakens eRussia on the weapons sector is the low import tax on weapons in our country. Citizens will start buying cheaper weapons from abroad, once again increasing the supply and forcing eRussian factory owners to reduce the price of the weapons in order to compete with the foreigners. In my opinion, import tax should therefore increase to 10 - 12%. It is ironic how Weapons Raw Materials have the highest import tax. So eRussians can buy cheap weapons from abroad, but cannot buy cheap raw materials to produce weapons in eRussia itself and help the economy?

One might say that minimum wage is kept at 1 RUB to allow employers to make contracts, in which they do not pay the workers with a lot of money, but give them weapons too as payment. However, to prevent another sudden decrease in wages to 10 RUB or less like in the past year, minimum wage should be at least half the average wage of 35 RUB; hence 15 RUB.

Summary:
Weapons: Work Tax 5%, Import Tax 10%, VAT 3-5%
Weapons Raw Materials: Work Tax 2%, Import Tax 7%

This not only helps our government make more money, but also increases the value of eRussian weapons and forcing salaries to rise even more.

By: COMRADE KEVVEK