[Swifty] Another economical article

Day 597, 02:37 • Published in Israel Israel • by Swifty

As a student of Economics and Accounting in Ben Gurion university, I found the economic part in this game quite interesting. Most of it work like it should be in the theory of demand and supply. Although the cheating and the multi accouning ruin some part of it.

Anyway I want to talk about some problem in Israel, but first introduction. In a closed market if all the companies and all the citizens have 100 gold together it will be always like that and that gold can only move between them. The companies are paying wages and the workers are buying the products. The company will be able to gain only the money that the workers have and they have only what the company are paying them. If we look at the country as one unit we can say that the country has 100 gold.

Now if we will take two units (two countries). In the first country there are grain and food companies and in the second only food companies. You need grain to make food. The second country will have to buy grain from the first one as they can't produce it by them selves. Also lets say that every country can produce enough food and they are not buying from each other. In this situation as you can imagine eventually all the money will be in the first country as it always selling and not buying anything.

So what it has to do with the game?
Israel don't have any raw materials so we are importing all of them from other countries. It doesn't matter if they are exporting to Israeli market or if we are comming to them are buying it from their market. The bottom line is that we are paying them and the money is going out.

There are some ways for the Israeli market to gain money. The first one that I already mention is exporting. The second way is when new citizen reach level 6, if he get 5 gold than the total gold in the country is higher in 5 gold. The same thing is when a citizen gain 5 gold from a medal. Another way is when someone from different country come with money. That of course also making the total money in the country higher. Btw that is the reason why tourism is important for countries in RL.

There are aslo few ways of money to get out of the country. The first one is importing. The second way is when someone using gold and buying\upgrading company, or when someone buying wellness packs. And the last way is when someone with money leaving to other country.

As we don't have many new citizens that reach level 6 and we are not getting too much medals, we have to start exporting much more, or else we as community will become more and more poorer. I think you already noticed that there are not many high level companies in Israel, and many are closing down.