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Money money money

Hello! It’s me again. Hopefully by now you would have read over my Domestic Manifesto. Again, votes are welcome. But I stand here today with another manifesto; this one delves into the world of finance, and outlines plans and aims for the first term of my presidency.

I would like to stress that money does seem to come and go, vanishing often when there is a war. Expenditure can be high, which, depending on where the money is going isn’t always a bad thing. However, money saved today is an investment for tomorrow. I hope to monitor expenditure closely and suggest to ministers cut backs that could be made. We will also be looking into reviewing how military funds are distributed between the 3 main branches, and making relevant changes based on statistics to optimise what money goes where.

Enough of that, time to underline something.


Taxation Policy

When changes in VAT are suggested, there is often much speculation and guesswork put into what figures should be changed and by how much. So, to tackle this we need to look into finding a good way of calculating the value of our taxes. Currently we have an idea of what the total income is, but as said, when it comes to changing specific taxes, that isn’t much help. Therefore, a tax revenue study, commissioned by the Chancellor, in order to look into our total national income from all goods sold to calculate VAT, extrapolated from the marketplace.

Furthermore, we should aim to create a weekly tax report, reporting on tax income and changes from the previous week. A long with the data on VAT, this can help us calculate things like wage changes, and investment in business. This should work more effectively then estimating/guessing.
Similarly, changes in Import tax are often proposed without having had the proper research done to back up the figures. It is the case in eRep that many countries are short on certain Raw Materials. So, in order to promote imports the Import tax is set to 1%. Unsurprisingly, the opposite is also true. Many countries are rich in RM’s so whack up the Import Tax to try and deter people from importing those goods into the country.

This can be used to our advantage, as it effectively gives us control of the countries imports and so our own markets. The Ministry of Trade, will continue monitoring markets and prices. If The MoT sees it fit to allow more imports in he can work with the MoF and decide on a figure with which to reduce the import tax on the specific product on.

Taxation needs to be efficient, offer incentives to businesses, but most importantly raise money for Government plans. We need departments to start working to monetary targets set according to taxation, and to attempt to estimate expenditure. Using both expected income from Taxes and expected expenditure of government departments, we can deduce where possible cuts can be made and where more money is needed, and so alter taxes accordingly. This effectively means that at all times ministries and departments can try as best as possible to not overstep estimated income and should help ensure our out flow does not exceed our inflow.


Trade Policy

Personally I feel the MoT was doing a great job collecting data and offering advice to GM’s. However, it can definitely do more. Using data collected it should have the freeness to intervene in markets to best suit the general population. The MoT can make suggestions to the HoC and begin to carry them out as far as the given funding will allow.

The MoT compiles data on domestic market prices, on international markets and can be used to establish trade deals abroad. It has always been a lot smaller in its scope than the MoF. In the past it used to be associated with the "Small Business Association", which funded loans without interest for small businesses. I would like the SBA resurrected, but with a different mission.

Government gold being sent to small businesses is really only something that should happen when a market suddenly faces large demand, such as during a baby boom. Instead, the SBA would be a government led interest group which would help to tackle issues in the marketplace, offer advice, and so on. Many business people don't know what to do when the market suddenly falls through and prices plummet. The SBA would be a helpline for businesses to use, and would also have a community spirit between GMs where people could help each other out, network, find suppliers and so on.

In addition I would like to explore the possibility of reintroducing RRPs. These would be set prices (in gold) for products on the market. Along with these prices would be an elastic variable. For example say with Q2 food the price was £1.40 and the variable was +/- 20%. This means that prices could vary as high as £1.68 before intervention was considered. The price and variable would be set by the MoT. If the price stays above the variable for more than a couple days the MoT would begin to advertise the fact that the market needed investment. After a couple weeks if the market remained at the high it could consider intervention, if the matter is considered to be important the PM could sanction new companies to be opened, or existing companies to be contacted and asked to reduce prices with the threat of government intervention. The role of the MoT is twofold- to encourage business and to protect consumers from piratical financial practices.


The Monetary Market

We need to set our benchmarks. The MoT and MoF will discuss and agree on a decent benchmark to use. We can explore the possibility of reducing the benchmarks, in a measured and proper manner, to a point where our products begin to become competitive once more. Where this is, is dependent on a natural level. Only then will we see people willing to sell their GOLD for GBP on the monetary market, restoring our currency markets and exports to brisk and profitable trade.

There is about 360 gold on the market currently, mostly between £30-33. We could buy it all for less than £12000. Following this, we could dump the gold back onto the market at 38.5, drop £100k on the market at 0.026 and keep issuing cash until we're done. As it is should the benchmark hold our gold stocks will jump in value by about a fifth, and the gold we have just bought off the market will increase. Should the currency go too far the other way and the pound begin to devalue; we simply buy up currency again until it levels out. There is a huge potential gain here, and in my opinion is more than worth trying out, despite the costs.


The MoW


I was once MoW, ya know?

The purpose of it is to provide skill 0 players with a job. However when I did it I also PM’ed all the employees, (by the hundred) with advice on how to get started up. This could continue, if the MoW and MoHa get in contact with each other, and decide how they will go about doing it. Back in the day, I would maintain 200 hundred job spaces in RT, the land company. The reason being, is that the eUK has loads of grain, so a large land workforce is needed in order to make the best out of that. In order to create a workforce for land, we can either keep many more jobs open in government owned land companies, or, offer higher wage job offers. The latter will surely be most effective, but will also help combat harmful business we’ve seen set up by king foods etc.

The reason a large land workforce would be beneficial is that it means that grain could be produced relatively cheaply, and grain companies would grow as the workforce increases. This would ease the demand on grain. Furthermore, the food market can boom during war as people by higher Q food. A large RM workforce backing it up means that we could see ourselves becoming a major grain exporter, providing we get this large land workforce.



Tune in next time for the Military and Foreign Affairs manifesto 😉
Mr Woldy. CP Candidate.




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