Join the new world

A few days ago, we announced our intention to switch to an eSocialist economy. Since then, we've been running some numbers, and the stark reality of the situation has begun to sink in.

1. The world market is currently in a depression. There is little opportunity for reliable exports, because almost all the markets around the world are suffering. Currencies have drastically lowered. The Philippine Peso [PHP] is down almost 47% in value due to importers, thus, momentarily, we will be shutting out foreign food competition to help stem the bleeding of our currency.

Our food market nowadays is more expensive than it was before the war, for obvious reasons. Two months ago we were at the top of the market, now we're around the bottom. To use an example from the eSocialism thread on the forums, here's a scenario for world-wide competitive food when PHP was worth .011:

The 'goal' price in this case is .60 PHP. This is because ((1/(.60*.011))*2) = 303, which would pull us onto the top of the world in the best cost/food food prices in the world.

A person at 10 skill produces 50 Q1 food a day. His current wage is 20 PHP, or .4 a product. This only leaves .2 PHP per product in Grain, (6 grain in a Q1), or .033. In order to bring this to reasonable levels, we reduce the wage to 13 PHP, or .26 PHP a product, putting the needed grain price at roughly .056.

To accomplish this, we go to Grain, where a Skill 10 makes roughly 198 grain, or enough product for 33 food. Said person currently makes 21.50 PHP, or .108 PHP per grain. Thus, we have to cut that down significantly as well. Bringing it to 13 PHP takes it to .0656 per grain, which still falls a bit short, but there are taxes to be pulled in as well.

However, with 13 PHP, the Q1 food maker previously at 20 and now at 13 could recover 43 health a day, as opposed to 40.

The percentages, wages, prices, and etc. still need to be really worked on. This is just to illuminate the level of complexity we're going to be dealing with.

Unfortunately, with a lack of significant exports, it will still be difficult to jump-start the economy and the currency, but we are exploring all our options.

Additionally, in order to make eSocialism properly work, we may actually have to temporarily flood the market with even more PHP in the form of higher wages to drive out competition. That in particular is not inviting, but is something we have to consider to make this properly successful.

2. Psychology is a pain.

If we do not increase wages and properly decrease them like we should to stabilize the currency and our value, we risk citizens switching jobs, all while real wages are increasing through lower prices and the elimination of profit margins. This factor will determine whether or not we continue to hold the currency down for exports and psych factors, or pull it back up and drop both wages and prices at the same time as would be recommended. In any case, we will be watching the economy every step of the way.

3. We are more prepared for this than ever. Every business owner I have yet see to give input on the situation has agreed with the plan, and they have the most to lose. This shows to me a great dedication to the national health over the health of the self, and I thank them in advance for their cooperation.

As for a set date and time-line, we are still preparing the formulas for prices and wages. Just look at the Productivity Formula--it's a bit crazy.

It will basically work like this--we'll be setting a value to each production point based on how much the PHP is worth, which will in turn be tied to the Food prices. In essence, we will be working to provide you with as much money as we can fairly grant as tied to the food price, which will be vigorously regulated and wages reflected upon every few days to match until the economy and monetary market stabilizes.

I'm hoping for an implementation by the middle of next week. You'll hear more news from official government sources.

Sincerely,
Advisor Hekter

On a personal note, after a year of convincing, my darling eWife has finally joined us in our island paradise 😃