[Swifty] Economical crisis
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by Swifty
We have too many Q1 and Q2 companies in the country. As you know the lower the quality the more products you can produce. Because of that the Israeli market is flooded with low quality products and the companies can't sell everything they produce, so they starting to accomulate a big stock. The companies want to sell the stock because they are out of money and they need to pay wages and buy raw materials. so they are lowering the prices for it. Because they are lowering the prices they can't pay high wages. They also most of the times firing all the workers, until they will sell their stock.
Even though we produce too much we don't have enough companies for all our workers in Israel and the job market is almost empty. exporting some of the products will decrease the supply in Israel and the companies will be able to sell the products in reasonable price and we could have more companies. Exporting can be actually more profitable than selling in Israel. Exporting has another advantage that it bring gold to the Israeli market. For example lets say that you are exporting to USA, so you get USD for your products. You can't pay your workers in USD so you convert them to gold and buy with them NIS.
There are two ways of exporting. The traditional one is to buy export license and start selling in that country. The advantage is that you selling directly to country and the price there could be higher than in Israel. The disadvantage is that you have to pay import taxes, that could lower your profit.
The second way is to have in the market the lowest prices in the world. The advantage is that we don't have to buy export license, and people will come to Israel to buy our products. The disadvantage is that it's not easy to have the lowest prices in the world and to be able to do it without bankruptcy, the companies will have to give low wages. If companies will start to export it not only will make our economy stronger, it also can actually save our economy from collapsing.
Another way is to establish more Q3,Q4 and Q5 companies. By producing higher quality the quantity will be lower, companies will gain more money and will be able to pay higher wages. Just look what heppend to our job market when sadeh closed his Q5 and Q4 weapons companies. He had the best workers in the country in those companies. In small country like Israel closing the only Q4 and Q5 companies could make big chnage. If no one from the citizens have enough gold to upgrade to higher levels, maybe the goverment should think about constructing and running them.
And a word for all the people that complain about low wages. What doe's it matter if you get high wage, but the prices in the market are high, or you get a low wage but the prices on the market are low. Think also that when you get a bonus of 5 gold you can buy with it much more when the prices are low.
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i whet the second way
the prob is that there is always a minimum expense on the raw materials. if you want to sell for low price you must remember that the minimum value of raw material will not change.
low price will be gained only by lower salaries.
all that idea of "black market will fill the country with gold" is wrong. only private ppl will earn from it. and they will have no reason to turn the gold they earn into NIS.
People from other countries don't have NIS. They will buy the NIS.
You are right about the raw material, it making a minimum price for products.
but they will buy the NIS from citizens. not the government.
anyway, the mean of low price and salaries means that the citizens of eIsrael wont be able to buy the products even when it will be cheap. and lets not even try to talk about being able to earn enough gold for opening companies.
polgara please stop this BS! Gov is often present at MM by means of OBOI or other gov related org with around 1000 NIS in a single offer.
o, when was the last time that you bought money from any gov in the monetary market?the last time that i checked, they were the last in the cheaper offer.
anyway- all this black market and earning gold by selling items too cheap is just a way for cheap people, that want to pay low salaries, to make other people to love them -.-
lets c... there a lovely ticket company that hires workers for max of 4.5 NIS for lvl 7.
now, they are pretending to be saints in the newspaper, and that make alot of stupid ppl to go and work for them. there is another ticket company that is giving much higher salaries as much as i remember. what will happen to them? do you really think that they can compete?
giving green light to this kind of attitude will harm every1 eventually . both those who are looking for jobs and those who already got 1.
I'm working in a weapons company for 1 Nis a day
and why are you so proud about that?
I would love to upgrade the government companies... except we don't have enough gold to do it for more than 1 or 2 of them which really wont make a huge difference.
In Israel we have a Inflation of 185% do you know what that means?
The obvious solution is raising the minimum wage. The market obviously can't handle the regulation by itself so a governmental act should be taken.
Raise minimum wage, force companies to pay normal wages and balance the market's status.
No use in whining, an action should be taken to stabilize the job market.
Comrade, I am sorry to disagree with you, but raising minimum wage is not the answer. Increasing production and productivity is.
Remember, the owners of companies have a amount of money. If they are forced to pay more, they will be forced to FIRE more people because they will not have enough to pay their current number of workers. (Please recall that our unemployment rate is high up and we cannot afford more unemployed people.) Call to mind also that productivity here in eRepublik is direcctly related to the number of workers. They must reach the "Max Productivity" line to reach full efficiency.
They must be able to hire MORE people, not less. How can that happen? Minimum wage must be annihilated or at least kept to the bare minimum.
Sure, its immediate effects will be bad, but not its long term, which will cancel out its immediate ones. With more people hired, more goods will be produced, which will enable them to spread their costs on more products, which will naturally (by simple division: total overhead costs/# of goods) lower the price of their goods.
With the price of the goods lowered, more will buy and he economy will prosper.
voted..
same happened in eIran, and i guess every where
here is my article about the crisis
http://www.erepublik.com/en/article/food-crisis-what-why-and-how--848973/1/20" target="_blank">http://www.erepublik.com/en/article/food[..]/1/20