~Benn for President: Fixing and Improving our Economy~

Day 347, 18:22 • Published in USA USA • by Benn Dover

Before addressing the topic of the economy, I would like to begin with some news. Yesterday, I received the official endorsement of Time and his party, the Libertarians. Here is what Time has to say about myself and my campaign:

“I want to formally announce that the Libertarian Party and myself will be endorsing Benn Dover this upcoming election. In 4 days we will find out who will be eUSA's next leader. That’s why I want someone like Benn, chalk full of experience and ideas, to run this major power in the eWorld.

He plans to make the minimum wage set in stone, so that congressmen don't waste their time fiddling around with that and can focus in other realms. He has almost 9 companies that have been run pretty well and that shows that he knows how the economy works.

Benn and I have both been feeling the pinch though in some of our companies.
Over production and high salaries have the market flooded with extremely low prices on items and it seems hard to make a profit these days. But Benn will make sure Congress gets this problem FIXED!!! Right now though it seems congress is on the right track, they have been proposing taxes on some Raw Materials.

So any who, I believe that the best candidate to fix our economy and lead America through the fairly new V1 and protect us from our enemies is Benn Dover.

Yours truly,
Time”

If you have read Franco’s latest article, you would know that I am well-known to be generally intelligent about the economic functions of Erepublik (http://www.erepublik.com/en/article/breaking-current-president-issues-endorsement-694242/1).

That said, it is common knowledge that, while market prices are down, general managers suffer for several reasons

1) Prices are too low due to companies competing (probably due to the low cost of gold to create a company).

2) Markets are saturated and demand is low.

3) In V1, companies can easily over-produce, causing for an unnaturally high supply.

If you put all of these together, you get an enormously high supply with a fairly low demand. The over-supply we cannot fix, America, but the demand we can.

In Peregrine’s latest article, and in AidenAstrup’s latest article (http://www.erepublik.com/en/article/questions-for-the-presidential-candidates-693982/1), the idea of funding a war, one that greatly involves America, was proposed by Pere and myself, respectively.

When the every-day citizen thinks of war, they don’t think of economic growth nor peace, but that is exactly what I plan to do if elected president. If America plans a war, communicates with other members of our alliance about this war, then starts said war, the terms, agreements, and actions of the war will be that of a peaceful mindset. That said, a war with and against one of our allied countries is entirely feasible and possible within the near future.

Now, you may ask, "How will starting a war fix our country?"

For those of you who were around in the ages of the US-Canadian war, you already know that the marketplace will be nigh-empty. Company-owners will be able to sell their products because, simply, demand will rise. Moving tickets will want to be bought, weapons will want to be used, gifts will be given, high-Q food will be eaten, hospitals will be placed, defensive systems will too be placed, and houses will be obtained for the sake of quickly improving one’s wellness. With the mass-purchase of both manufactured and constructed goods comes the natural increase in demand for raw materials.

Aside from this idea of a generally augmented demand, citizen activity and population will increase too, thus making for a better employment rate and country.

Another often asked question is "Why are our raw materials so inexpensive?"

For those of you who do not know, raw material companies generate at LEAST twice as much productivity - that is even if they are not in a 2-region. If they are in a 2-region, they would be generating four times as much productivity as the normal manufacturing or construction company. Because of this, raw material prices are ridiculously low, costing around 0.1 USD per raw material. So, general managers, just realize that even though prices are so low, it is not a price battle that you, the consumer need to deal with, it is a competitive battle. This competition battle will also be ended with the occurrence of a peaceful, or any kind of war.

Here's another reason why prices are so low:

Now, I don't need to state the obvious, but citizens who function daily under the simple two-click process are in for a treat - costless food. That’s right. Costless food! If you have 1 USD to your name you can live for another 100 days. Of course an increase in food is needed, eventually. While practically free food is good, nothing in life is free. Erepublik can’t successfully function in a realm where food is free just how the eUS can’t profit (through both company profits and VAT) with free food. The simple fact is that, when the admins gave every company in the world an additional 3000 raw materials, things started to go haywire. While many exulted in their recent abundance of raw materials, the long-term effects are starting to become obvious to some. The low-cost of food is a generally short-term effect, so I recommend that everybody who wants to purchase their food do so now before the inventory limit is installed. But for the time being, my friends, enjoy the free food while it's within reach.

Citizen Fee & Minimum Wage

If you have not visited the eUS forums in awhile you are missing out on the hot topics that occur in the legislative board. Make sure to visit this area to become informed of the two hottest topics in the eUS: Citizen fee and Minimum Wage. Here I quote myself from an article recently published.

“Minimum wage: Manufacturing companies are suffering far too much to lower the minimum wage. Setting it at anything higher than 1 USD/day will harm a lot of gift, food, and moving companies that need the lower profit margins. Of course, when our USD is deflated to the point where 1 USD = 0.016g, the possibility of raising the minimum wage will be much more feasible than 1 USD = 0.02g. A new citizen with no skill and 50% wellness in a Q1 manufacturing company produces around 1 to 2 gifts a day. 1 gift is running for around 1 USD, so unless companies paid their employees 1 USD a day, they would not be profiting.

Citizen fee: Q1 food costs next to nothing. Low-Q weapons are inexpensive. New citizens can get a raw materials job for as high as 5 USD a day starting salary - why do they need a higher minimum wage? Again, once our dollar deflates a little bit and the prices of manufactured goods goes up, I would have no problem increasing the citizen fee to, say, 10 USD.”

By fixing these hot topics, waste time discussing and proposing new laws for the citizen fees and the minimum wage.

Both of my responses to AidenAstrup’s questions touch on the deflation of the USD to around 0.017 or 0.016 gold per dollar. I, personally, am aiming to lower the value of our dollar.

Again, you may ask, "Why does Benn want a devalued dollar? I thought a valuable dollar was healthy."

Not necessarily. Think about it this way: If a weapons company sells a weapon for 50 dollars and 1 USD = 0.025gold, they will have a revenue of 1.25 gold per weapon. If a Swedish company is selling their weapons for 27 SEK and the exchange rate is 0.036 gold per SEK, then the Swedish company is selling their weapons for 1 gold.

If this Swedish company is suffering from the global over-supply, they will seek selling to a market that has a good price for USD. Taking import tax out of the equation, this Swedish company now has a new market that they can sell to.

What happens when you lower the value of a dollar? I will tell you what happens.

If the USD goes for around 0.016g, then that Swedish company will say to itself “Well I’m only making 0.8g over here, so I’m not really profiting”. So, in summary, lowering the value of our dollar keeps foreign companies off of our soil while maintaining the same profit margins for domestic companies - a win-win situation.

The price of one dollar is basically the ratio of dollars to gold in an economy. Right now, without even having access to the United States’ treasury, I am trying to both upgrade my companies (take out gold) and sell USD (put in USD), thus making the exchange rate for our dollars lower.

In contrast to real life, now is the ideal time to take advantage of the opportunity to be buy USD with your excess gold.

If I am elected president of the United States, I promise to maintain the healthy and easy living environment for all citizens while, at the same time, creating a BETTER market for all general managers and co-managers.

Creating Funds - for everything

Now, it may surprise you to know that the United States does not have the strongest treasury in the world. While, even I am not privy to the true number of gold and USD, I can rest assured that we are not on-track to being the most wealthiest nation in the world.

Why? Because are taxes are so low. The fact of the matter is that nearly every industry in America is has low VAT and income taxes. We currently have over 4800 citizens in our great country - the most in the entire world! If around half of these citizens are working and the minimum wage is 1 USD, that means that the United States is getting at LEAST 2400 USD a day. If we up the income tax alone to, say, 5%, that means that the US will start getting at least 12,000 USD a day! Larger country = More spending.

This change is significant. Now, I bet a lot of you are asking yourselves "What does our government do with this 12,000 USD?"

Here's the answer

- Funding for Government Programs such as the Department of Education, CIA, and FBI
- Purchase of Hospitals and Defensive Systems
- Monetary market regulation (aforementioned)
- Citizen fees

The more money obtained via citizen fees and VAT, the more effective these tasks will be carried out.

I am sure that, if elected, I can increase our treasury by as high as +1500 gold - a successful month for America. If you want this kind of success, if you want a war atmosphere in America, if you want a general better living environment for both General Managers and regular US citizens, then vote for me in the general elections.

That is all for now, my friends. Stay tuned for my upcoming article regarding foreign affairs and the US military.
~Bennjamin