Is the New Economic Module Really Better?
Day 1,270, 15:37
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Published in USA 
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by
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by Juan Ladino
No brainer Einstein, do I really need to tell you?
Ok I will.
Basically with the new module workers produce almost twice the amount before. The problem with this would be the fact that products are less than half their original price.
You might say: "It levels out, less pay; cheaper products."
But it doesn't. I think you noticed already that salaries are the same as ever. This cuts back on profit and actually slowly takes away what Business owners could be making.
Take my example:
A usual employee at Ladino Enterprises-Fish, produces about 135 units of raw food. The manager then sells the raw resource at marke price, .15~.16
The employee gets paid about $36.
But lets do the math:
Profit= (Units x Market Price)- Salary
Ok, (135 x 15)-36
Outcome? -15.75
Damn. So the manager just lost 16 bucks per worker. If there are 8 workers than lets do the math: -15.75 x 8= -126
So he lost $126
So what does he do? Lower salaries.
If salaries aren't regulated soon, this creates a scenario where companies drastically and quickly lower salaries. Workers then get pissed off and scramble to the highest bidder (Business Gurus).
Smaller companies are cut off, people lose money and we got a problem on our hands.
So if your manager lowers your salary, don't be pissed and don't quit the job.
If anything you'll help the economy by staying at the job.
That way we can all make a smooth transition from high prices/high salaries to low price/low salaries.
Thank you.
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Why would you wish to employ people, in the first place? For the last 3-4 months, supply exceeds demand in all eRep markets. Admin even used a buying bot to stop deflation.
It'd be foolish to employ others under these circumstances. Hence, your concerns about salaries being high/low are mostly irrelevant.
yeah i had employees maybe the first week i had my own company and thats it,,, i just consider it having multiple jobs to make your own supplies as the manager
just lower taxes: income and VAT. i click hard for my money and i want every virtual penny!
The entire system has been raped by admin.
They're a bunch of European socialists who don't understand the concept of laissez faire capitalism
If taxes are lowered then thats less funding for the gov't. Taxes are in percentage, so the gov't is already receiving less money. Gold prices are the same as ever so everything is out of balance:
Products cost less.
Salaries are too high.
Managers lose money.
Gold is more expensive.
I think this new "module" did NOT solve over production. In fact. Made it worse. But I can't say I'm shocked. I learned to expect the worst from new changes...
Actually, it is only raw materials companies that have this problem. Their break-even wage levels are about half of product companies, with a margin of about .30 and growing.
High quality companies will employ all workers. Just like tickets/stone/house companies did before the module change.
The basic purpose of the raw materials and manufactured products is they to be used. Surplus occurs when produced items are more than the need for consumption. In this case, what is the salvation?
- curb the desire for trade and profit. Stop making goods for a while until the surplus items are sold
or
- don`t stop the production, pile up the unsold items and howl against "unfair game rules"
FUTREL is mistaken about how long over-production has been a problem. When I assessed the causes of over-production over a year ago (http://www.erepublik.com/en/article/a-terrorist-reads-the-global-economy-963017/1/20) it was already old news. Supply has exceeded demand globally for well over a year (maybe two), and the shortages in individual markets have been entirely attributable to the calamities of war (regions won and lost) with the occasional gold-driven spike in demand.
Frankly, the problem is that the eRepublik admins studied the same economics texts that Emperor Rick did, which is why they haven't cottoned on that laissez faire capitalism ALWAYS runs into crises of over-production: in order for owners to make a profit, workers MUST produce more than they can afford to consume. That is, by definition, true for all capitalist systems.
There are only a few options available to Plato: spur consumption with new Gold (by making everything cheaper?), buy up the surplus (PlatoBot), destroy inventory (Inventory Cap), or obsolete everything (merging all existing capital and inventory into food and weapon industries).
I used to make 2-3k usd everyday, Now I can barely make 700usd.So no!
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