[PS] Economic Plan Proposal
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by Major Lee Hung
Dear Canada,
Coming up in 2 weeks are the presidential elections - a chance for everybody to choose the next leader. To begin things, I currently have no interest of running for this position myself.
I do however have a strong interest in the economic side of eRepublik, and offer my services & the below proposal to any willing candidates who are willing to take on somebody new to government things.
Economic Plan
We currently do very little in terms of economics - this is a great shame. Many will tell me the economy is "dead" and that I'm beating a dead horse in trying to make things fun/prosperous again. You'll be surprised however at just how little it takes to create positive change.
Recent Experiments
Until 2 weeks ago, United Front's commune paid excessively high monetary wages to its workers. This wage is now massively reduced and weapons are given instead. Subsequently, the national average wage has fallen 20% already. (and will fall a further 5% in coming weeks before stabilising) This not only means less money circulating, but a huge fall in work tax.
The result? Our tax revenues have fallen, on average, between 15%-20%. Yes, these were small actions, but the implications were huge.
Hopefully the above opens your eyes to how you can create a strong return on investment for eCanada by putting that little bit extra in to our economy. This is why we need to move to keep our economy competitive.
The Plan
On to the important part! My proposed plan is as follows:
Taxes
Taxes should remain the same - the effects of lowering them are negligible to individual citizens, yet detrimental to our budget. There will be no need to raise them, as revenues can be increased in other ways. In summary, taxes will be left alone.
Market Place
Those of you who frequent marketplace sales may notice the WRM today. I've lowered my own production and am instead sourcing required materials locally. This small move means I'll be putting around 60,000cc per month through the WRM market alone - and I encourage others to do the same.
Initiatives like this will increase the movement of money through the economy, and if replicated in the 'final product' markets, will boost tax revenues. The increased supply of money to eCanadians should already increase tank & food sales. Under my full plan, VAT revenue will significantly increase.
Jobs Market
The eCanadian job market is very flat. The rest of the world is beginning to double what we pay. Our economy will shrink heavily unless we can compete internationally in some way. Employers don't even need to take that big of a hit, but it's vital we get the national average salary rate to 33cc per day soon. Under my plan, 70 new jobs will be created for Canadians to kick-start competition in the jobs market. The end result will be increased Work Tax revenues, increased output and a better Canada.
These countries pay between 100% and 200% more than Canada, yet in real terms are only ~50% more productive.
Monetary Market
The time to invest in gold is yesterday. The way things are going, I anticipate gold prices will rise, at a minimum, around 7% over the next 60 days. This may sound insignificant, but we can profit greatly on daily fluctuations when the overall price trend is upwards. Under my plan, gold investments will be increased and treasury revenues will increase with them. Investment is key for small economies.
Analysis
In short, very frequent reports will be published to show the movement in our economy; so that you can track the financial progress we make and whether this plan has been successful or not.
Constant awareness in market trends are key to ensuring successful investment.
The flat gold price will soon begin to rise again
Hopefully the above will give you an idea of what I intend to do. Any presidential candidates who wish to discuss any (or all) of the above with me, feel free to message me. It's time we create a Canadian economy that works for us all, and I'll make damn sure to deliver on that.
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Comments
This is only summaries of what I intend to do, don't want to put people to sleep with the article!
Message me if you want a more detailed explanation on any points. 🙂
Any guess what percentage of active eCanadians work at a market rate job?
I would guess at least half or more work for some kind of MU commune. COI has been doing what you are doing with the UF etc. on a bigger scale for quite a while already.
I'd estimate anywhere between 220 and 300 work each day. Maybe half of them (or less) will work in communes. The "casual" players tend to prefer the market rate, while more active players who rarely miss a day's work will prefer weapons. Canada has one of the highest commune rates I've seen in eRep.
This in turn has a huge adverse impact on Work Tax revenues.
A lot of detailed and helpful info here, some solid points to work from for sure. However I don't see exactly what you want to do in order to reach said goals. For the WRM, are you asking the bigger producers to stop producing and instead just buy locally. And in all, taxes have to come from someone, so who are you targeting, or is is to be spread out evenly?
The Job market thing I don't see exactly why we need to reach 33cc average wage? Paying workers more a day mean they have more money to spend, but it also means food and weapon producers have to raise prices to ensure they keep their normal margins, thus prices go up and workers have to pay more anyways.
How do you plan on creating 70 plus jobs?
Don't get me wrong I don't mean this as an attack, I think you put a lot of hard work into this and I am happy to see it, I just have questions of how we may actually reach the goals you are talking about.
Cheers
Thank you!
And it was more aimed at things such as the temptation to buy things internationally just because you'll save 0.003cc per WRM.
The job market will keep us competitive. The longer our salary is heavily below the average, the more workers will go to work for Argentinian employers on a long-term basis and it's hard to reverse that. We lose out on work tax, and nationally the production output will suffer greatly. At 33, it's still possible to profit in the current climate.
70 jobs I can afford to create myself and fund myself, and generally use them to compete to keep the job market alive. I only expect to actually fill 30-40 of them if the plan works. If not, I won't need to create competition anyway because I'd have a lot of Canadian workers.
Smoke asked most of my questions so I won't repeat. Still I'm confused about something. You say you will quit producing so much, buying off the local market (be sure the person you are buying from is actually Canadian btw). Yet now you will be creating 70 jobs. HOW CAN YOU REDUCE PRODUCTION and hire 70 people. Will you just pay them to work and then not apply their labor to any job? If you're sole intention is to funnel money into the Treasury why not just donate?
I have 1000s of reserve labour already, I'll just continue to save it up most probably.
The treasury is the secondary goal; the wider population is the primary goal, and it's impractical to pay everybody that bit extra each day.
The new Housing Industry may have just done all this work for you!
Keep in mind that in order to ensure you are only buying from locals on the eCanada marketplace, we would need to raise Import Taxes on raw materials to excessively high levels to discourage importers.
I have one question for you. You said than you wanna create 70 jobs. How are you gonna find 70 workers cause it look like everybody is already working. Your just gonna stole workers for other compagny. Our biggest problem is into activity and workers.
I know I won't fill them all, but it will initiate competition and activity in the job market and stop wages falling, while everybody else's rises.
That's all quite interesting, I had noticed the issue with our job market vs the international market. I would think that being able to double one's salary will be an unavoidable temptation for some, putting a drain on our labour resources.....and therefore tax revenues.