It's the economy, stupid
Day 1,165, 09:13
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Published in Canada 
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by
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by AugustusV
Click here if you missed reading my first Presidential Campaign article!
French version coming soon! "[EN/FR]" will be added to the title when translation is complete!
-Setting the agenda for economic success. That's how we can win the future.-
Ladies and Gentlemen, if we are to win the future, we must first win the economy, and in this article I will demonstrate the strategy to do so. The future is ours to take, we just have to have the courage to take it.
Before I begin I want to give you all some background information on where my theories come from. Dean22 pioneered this economic plan almost 2 years ago, and after Finance Minister Alexander Rearden at the time admitted to being a little "confused" as to what to do next, Dean22 stepped in to "make it all right". His tables and charts and attention to detail pushed Jacobi, six-time eCanadian President, to give Dean22 the green light to his reforms. And thus a golden era to eCanadian economy began. What I find however, is that the basis of his theory still stands true the same as the laws of supply and demand still stay true. What has changed are the parameters; the numbers we have to work with, but with proper research this is no problem at all.
Again, these reforms have been tried and tested.The result? The most successful financial reforms in eCanadian, and possibly eRepublik history.
The result was that eCanada started making about 3/4 of what the eUS was making in terms of revenue, the catch was the eUS had over 5 times more citizens and general economic activity. Our economic reforms were such a success, that at the time the eUS adopted our theories and tax reforms as well.
Of course I added a few of my ideas to the whole reform, including a bond system that Dean22 agreed with, but even this bond idea has been tried before by other nations and been proposed by eCanada's #1 monetary market trader, Alby. But with that being said, what I am proposing here is not some insane never-been-tried-before theory that may or may not work. No, what I am proposing is the reimplementation of the most successful financial reforms we have ever had.
And the difference between me and the other candidates is not that I came up with the majority of these ideas, but that I understand them well enough to implement them myself (even though I'll have plenty of help from my brilliant economic ministers and advisers), and I have the courage to push new frontiers in economic growth and prosperity.
You don't win any sort of future by being too afraid to think big.
-The Plan-
I believe strongly in our ability to govern our own nation. Just because a few bad apples ruined confidence in our leadership does not mean we have to lose all sense of self-esteem and advocate the elimination of government. That's just pathetic defeatist mentality.
I am in favor of strong government revenue to fund our wars, fund strong social programs to help new players, and stimulate the economy. Moreover if you give the free market free control over all aspects, you get what we have today with a currency spiraling out of control, and constant inflation/deflation of wages/prices. All the while government is too broke to fund it's own army properly. It's a disaster really, and we're currently living in it.
My plans to increase government revenue, and increase the potential for eCanada to do great things consists of 4 key steps I will take.
1. Raise Income taxes to around 20%, lower VAT to 1%, and keep import taxes at around 15-50%. Each industry will be carefully studied and given an exact tax rate that will be modified along the way as our economy changes.
2. Greatly increase government revenue by keeping the monetary market under firm command of the government. The government will use taxes and a bond system to keep complete control of the MM which will be used to provide stability to the economy, and predictable and higher revenue for the government.
3. Create working incentives for foreign workers by making sure that purchasing power for the eCanadian workers stays as one of the top in eRepublik.
4. Perform bi-monthly studies of the economy overlooking all aspects and making sure the proper changes are made to effect on the changing nature of economics. During crisis periods of Admin changes to the economic module, weekly reports will be completed to see what should be done next. It's time we have a Government Financial Institution doing the proper market research and publishing it to the people of eCanada.
-Explanation-
Again I will do my best to explain this theory and how it works, but for those who have trouble understanding economics or are a bit nervous about these "big" changes, I wish to remind you of two things:
1. I promised an ambitious platform. I promised to win the future by thinking big and taking action. I am not going to get bogged down in being too scared to take some chance at some change. You miss 100% of the shots you don't take, never forget that. Plus, who can advocate that we can possibly get any worse economically?
2. For those who are still jittery, I remind you that this plan has been tried and tested with huge success. Don't believe me? Ask six-time President Jacobi to confirm this as a fact.
Also, these three forum posts explain Dean22's theories very well. I will merely try to give my own version, a more simplified one so people can understand better. Also remember that all the numbers listed are outdated, but the theory still holds true.
1. http://ecanada.cc/forums/viewtopic.php?f=65&t=195
2. http://ecanada.cc/forums/viewtopic.php?f=65&t=390
3. http://ecanada.cc/forums/viewtopic.php?f=65&t=579
I will break up my explanation in categories for easier comprehension.
-Tax Reform-
The idea here is that we can safely import with no damage to government revenue or domestic production if we tax imports enough to keep prices the same as the domestic market. Moreover we are keeping the CAD we tax therefore removing it from circulation and giving the government control over the money supply and thus currency inflation/deflation.
GM's make a lot of profit, why? Because domestic demand is super high, while domestic supply cannot quite meet these demands. Imports help keep prices normal, however by somewhat restricting them we will create a cycle of rising prices/rising wages. This is of course no problem and those who remember the old days understand that Dean22 managed to keep the situation under control.
The idea is to keep GM profit's high by constantly assessing their profit margins, and maintain a high-demand domestic economy. The focus for the consumer is assessing his purchasing power, that is wages in relation to prices.
The VAT tax is unneeded, and only useful in times of economic boom, which clearly we haven't experienced in a long, long time. VAT tax cuts into GM profits as GM's actually must lower their own profit margins to compensate for tax and the danger of foreign competition. All in all they actually reduce GM profit's and contribute less money in revenue.
Here is a detailed study by Dean22 to explain the situation with VAT tax (keep in mind the numbers are very outdated): http://ecanada.cc/forums/viewtopic.php?f=65&t=195
-Government Revenue-
Remembering the historic amounts of government revenue eCanada once made, I think we can pull it off again. The key is doing it through monetary control, not just taxes.
In fact, the taxes are mostly there to control money supply. The government can then use this control to maintain a stable currency and a stable stream of revenue by releasing CAD slowly into the market. Printing money will actually be almost totally unnecessary as the tax system, and the bond system which I will explain later on, will do most of the work, however printing money is still useful in certain situations.
The import taxes help keep the market stable if demand is too high (and thus protecting the consumer), but they also suck up CAD through the tax, which again gives the government power to control inflation/deflation. All in all any import tax less than 50% will cause some downwards pressure on the CAD however this is to be expected and will not impact us too much.
Another system I proposed was the bond system which I will explain down below.
-Bond System-
The bond system will allow the government to create debt while also controlling currency. Issued in gold only it will allow government to create demand for CAD by issuing bonds, and increase CAD supply by buying them back.
The bond system is still in the works but theoretically we could create our very own debt system as was done by the Italian States during the Renaissance, and which gave them so much power to win wars and raise armies.
The bond system will also provide an easy access to more funds for war in times of need, and an emergency currency regulator when extreme conditions occur like the recent dumping of duplicated currency by hackers.
-Conclusion-
I WILL be the change we need. I WILL be the driving force behind the ambitious program to win our economy back from the grips of the depression. I have the help of brilliant economists like Dean22 and Alby, and I will continue to give a voice to all those who wish to debate such matters.
With increased an revenue we'll be able to fund wars, fund new player programs, and generally create a successful legacy in our wake. We'll have a stable and robust economy, and a diligent financial administration of passionate economists making sure it all stays in the balance.
The time for fear is over. The time for defeatism is over. The time for action is now. Win the economy today, win the future tomorrow. Elect Octavian_F, and you'll win the economy.
Our golden age awaits us.
French version coming soon! "[EN/FR]" will be added to the title when translation is complete!
-Setting the agenda for economic success. That's how we can win the future.-
Ladies and Gentlemen, if we are to win the future, we must first win the economy, and in this article I will demonstrate the strategy to do so. The future is ours to take, we just have to have the courage to take it.
Before I begin I want to give you all some background information on where my theories come from. Dean22 pioneered this economic plan almost 2 years ago, and after Finance Minister Alexander Rearden at the time admitted to being a little "confused" as to what to do next, Dean22 stepped in to "make it all right". His tables and charts and attention to detail pushed Jacobi, six-time eCanadian President, to give Dean22 the green light to his reforms. And thus a golden era to eCanadian economy began. What I find however, is that the basis of his theory still stands true the same as the laws of supply and demand still stay true. What has changed are the parameters; the numbers we have to work with, but with proper research this is no problem at all.
Again, these reforms have been tried and tested.The result? The most successful financial reforms in eCanadian, and possibly eRepublik history.
The result was that eCanada started making about 3/4 of what the eUS was making in terms of revenue, the catch was the eUS had over 5 times more citizens and general economic activity. Our economic reforms were such a success, that at the time the eUS adopted our theories and tax reforms as well.
Of course I added a few of my ideas to the whole reform, including a bond system that Dean22 agreed with, but even this bond idea has been tried before by other nations and been proposed by eCanada's #1 monetary market trader, Alby. But with that being said, what I am proposing here is not some insane never-been-tried-before theory that may or may not work. No, what I am proposing is the reimplementation of the most successful financial reforms we have ever had.
And the difference between me and the other candidates is not that I came up with the majority of these ideas, but that I understand them well enough to implement them myself (even though I'll have plenty of help from my brilliant economic ministers and advisers), and I have the courage to push new frontiers in economic growth and prosperity.
You don't win any sort of future by being too afraid to think big.
-The Plan-
I believe strongly in our ability to govern our own nation. Just because a few bad apples ruined confidence in our leadership does not mean we have to lose all sense of self-esteem and advocate the elimination of government. That's just pathetic defeatist mentality.
I am in favor of strong government revenue to fund our wars, fund strong social programs to help new players, and stimulate the economy. Moreover if you give the free market free control over all aspects, you get what we have today with a currency spiraling out of control, and constant inflation/deflation of wages/prices. All the while government is too broke to fund it's own army properly. It's a disaster really, and we're currently living in it.
My plans to increase government revenue, and increase the potential for eCanada to do great things consists of 4 key steps I will take.
1. Raise Income taxes to around 20%, lower VAT to 1%, and keep import taxes at around 15-50%. Each industry will be carefully studied and given an exact tax rate that will be modified along the way as our economy changes.
2. Greatly increase government revenue by keeping the monetary market under firm command of the government. The government will use taxes and a bond system to keep complete control of the MM which will be used to provide stability to the economy, and predictable and higher revenue for the government.
3. Create working incentives for foreign workers by making sure that purchasing power for the eCanadian workers stays as one of the top in eRepublik.
4. Perform bi-monthly studies of the economy overlooking all aspects and making sure the proper changes are made to effect on the changing nature of economics. During crisis periods of Admin changes to the economic module, weekly reports will be completed to see what should be done next. It's time we have a Government Financial Institution doing the proper market research and publishing it to the people of eCanada.
-Explanation-
Again I will do my best to explain this theory and how it works, but for those who have trouble understanding economics or are a bit nervous about these "big" changes, I wish to remind you of two things:
1. I promised an ambitious platform. I promised to win the future by thinking big and taking action. I am not going to get bogged down in being too scared to take some chance at some change. You miss 100% of the shots you don't take, never forget that. Plus, who can advocate that we can possibly get any worse economically?
2. For those who are still jittery, I remind you that this plan has been tried and tested with huge success. Don't believe me? Ask six-time President Jacobi to confirm this as a fact.
Also, these three forum posts explain Dean22's theories very well. I will merely try to give my own version, a more simplified one so people can understand better. Also remember that all the numbers listed are outdated, but the theory still holds true.
1. http://ecanada.cc/forums/viewtopic.php?f=65&t=195
2. http://ecanada.cc/forums/viewtopic.php?f=65&t=390
3. http://ecanada.cc/forums/viewtopic.php?f=65&t=579
I will break up my explanation in categories for easier comprehension.
-Tax Reform-
The idea here is that we can safely import with no damage to government revenue or domestic production if we tax imports enough to keep prices the same as the domestic market. Moreover we are keeping the CAD we tax therefore removing it from circulation and giving the government control over the money supply and thus currency inflation/deflation.
GM's make a lot of profit, why? Because domestic demand is super high, while domestic supply cannot quite meet these demands. Imports help keep prices normal, however by somewhat restricting them we will create a cycle of rising prices/rising wages. This is of course no problem and those who remember the old days understand that Dean22 managed to keep the situation under control.
The idea is to keep GM profit's high by constantly assessing their profit margins, and maintain a high-demand domestic economy. The focus for the consumer is assessing his purchasing power, that is wages in relation to prices.
The VAT tax is unneeded, and only useful in times of economic boom, which clearly we haven't experienced in a long, long time. VAT tax cuts into GM profits as GM's actually must lower their own profit margins to compensate for tax and the danger of foreign competition. All in all they actually reduce GM profit's and contribute less money in revenue.
Here is a detailed study by Dean22 to explain the situation with VAT tax (keep in mind the numbers are very outdated): http://ecanada.cc/forums/viewtopic.php?f=65&t=195
-Government Revenue-
Remembering the historic amounts of government revenue eCanada once made, I think we can pull it off again. The key is doing it through monetary control, not just taxes.
In fact, the taxes are mostly there to control money supply. The government can then use this control to maintain a stable currency and a stable stream of revenue by releasing CAD slowly into the market. Printing money will actually be almost totally unnecessary as the tax system, and the bond system which I will explain later on, will do most of the work, however printing money is still useful in certain situations.
The import taxes help keep the market stable if demand is too high (and thus protecting the consumer), but they also suck up CAD through the tax, which again gives the government power to control inflation/deflation. All in all any import tax less than 50% will cause some downwards pressure on the CAD however this is to be expected and will not impact us too much.
Another system I proposed was the bond system which I will explain down below.
-Bond System-
The bond system will allow the government to create debt while also controlling currency. Issued in gold only it will allow government to create demand for CAD by issuing bonds, and increase CAD supply by buying them back.
The bond system is still in the works but theoretically we could create our very own debt system as was done by the Italian States during the Renaissance, and which gave them so much power to win wars and raise armies.
The bond system will also provide an easy access to more funds for war in times of need, and an emergency currency regulator when extreme conditions occur like the recent dumping of duplicated currency by hackers.
-Conclusion-
I WILL be the change we need. I WILL be the driving force behind the ambitious program to win our economy back from the grips of the depression. I have the help of brilliant economists like Dean22 and Alby, and I will continue to give a voice to all those who wish to debate such matters.
With increased an revenue we'll be able to fund wars, fund new player programs, and generally create a successful legacy in our wake. We'll have a stable and robust economy, and a diligent financial administration of passionate economists making sure it all stays in the balance.
The time for fear is over. The time for defeatism is over. The time for action is now. Win the economy today, win the future tomorrow. Elect Octavian_F, and you'll win the economy.
Our golden age awaits us.
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Comments
"It's the economy, stupid"
-Bill Clinton's winning campaign slogan for putting pragmatic economic policy over partisan politics.
A vote for Octavian_F on February 5th is a vote for the economy. A vote for the economy, is a vote for winning our future. \o/
What if I don't like the economy? Does that mean I should vote for Aorailelololarailaloro?
^ Haha indeed. But everyone likes the economy because everyone indirectly profits off of it. My opponents are proposing a weak government because "it cannot be trusted" and will ensure total economic chaos.
Just look at the markets today to see what I mean.
I would vote for u, but Clinton.... :😁
"It's the economy, stupid"
-Bill Clinton ...!?
imagine, when he called someone stupid...roflmao :😁
I don't like the economy. The economy oppresses the workers. Down with capitalist wage slavery!
Well Clinton ran a budget surplus and arguably was one of the most successful presidents (financially) of the Century.
His slogan has become one of the best known phrases in American politics.
I find the meaning of his slogan to be about putting pragmatism over partisanship to do the right thing. I respect that quality very much in a leader.
@Dominik: Didn't you hear? admins made the maxim income tax capped at 20%. "Communist utopias" are no longer permitted under game mechanics. You'll just have to settle for this. Haha \o/
"It's the economy, stupid"
This wasn't actually a slogan used by Bill Clinton. It was James Carville's (his campaign strategist) reaction to the policy environment of the time, referencing how the Clinton team should frame George Bush Sr's understanding of national political priorities.
Also, the slogan was used to frame Clinton's strategy for a successful run. Pragmatic in the sense that people care more about their money than foreign adventurism, but highly partisan at the same time in that it was only there to frame a winning strategy for the Democratic candidate.
Ah yes indeed saltdog. However it still emphasizes the need for economic reform given the failed state of present day economy, and putting pragmatism over partisanship, even if partisan views at the time agreed with the pragmatic solutions given by Clinton.
It's still an epic slogan. \o/
"Didn't you hear?"
No. No I did not. Do the admins actively hold weekly meetings on the subject of "How to give players less options and make the game as dull as possible"? I would imagine it runs before the "How to screw people out of GOLD" committee meeting but after the "Which articles should we arbitrarily censor today?" conference.
Also,
>Bush
>understanding
pick one
^ I lol'd
TL😃L
^ Military people don't like to think too hard. It works that way IRL too.
Vote Prince for CP
good-luck
About the Bond system, Just don't forget that we still owe a considerable sum of money to the investors, the average canadian joe.
Wes Lewis is probably ROFLing somewhere around...
And yeah, they will have to be fixed. We invested gold in return for 44 CAD in return, obviously, that's not realistic right now.
Who is Wes Lewis?
Octavian_F
24
Octavian_F Day 1,165, 10:03
Yeah the difference is Chucky that the bond system will allow complete control of the MM, and will allow us to make way more profits that we will pay in interest. It's a win-win situation.
The Bonds are actually a profit-making tool for the government. MM stability is ALWAYS a profit-making tool for the government and bonds ensure both the stability and control.
And of course, do not forget the consumers and GMs who also profit from a stable currency.
Also, they will only be used if needed, not arbitrarily. If we already gain control through the tax policy, we won't need the bonds, but time and time again we see that crisis topple any stability we thought we had and that's exactly where bonds step in to reel in the market.
You should think about a repayment system is all I'm saying.
The gov owe a big chunck of money. so before we talk about even using it, we should repay the past bond that are DUE
Of course. However I there is also the idea of bonds that never get repaid back and give permanent interest. The government "pays them back" by offering to buy them from the holder.
However this idea is still in the works. I do not know what the final resolution to this will be.
The economy is not important at this time, structure is...I will bring that to eCanada. Once Canada have structure, then we could talk about the economy.....Prince for CP
^ The economy is not important? We need "structure"? Er... right... if you say so bud. Good luck with your CP run. Though I'd like to ask you to stop spamming me with your campaign stuff please. Thanks.
"does not mean we have to lose all sense of self-esteem and advocate the elimination of government. That's just pathetic defeatist mentality."
Referring to any particular party here?
You bought votes. Say goodbye to My support.
@Octavian_F you, and I have different point of view I get that but it seem like you still don't understand where I'm coming from with this and for this people should not vote for you... Because as a CP you're main job is to take advice, listen, and make hard decision....you're not ready for that. That was a test to see how would you respond and you failed...lol.
@Quado, I think he wasn't pointing a finger to a particular party.
@Prince. In order to build a house you need the money for it. Economy is needed to build up that structure you are talking about and at the same time the structure is needed to ensure that the economy doesn't go crashing down.
IMHO it's all about balance
"A-duuuuuuuuuuuuuuuuuh look guise im retarded we needz structuuuuurz"
"No, man. We need to improve the economy."
"Muhahahaha! I was testing you and you have failed. GAME OVER! MUHAHAHAHA!"
"And thus a golden era to eCanadian economy began."
How can that be? You claimed eCanada failed big time back then.
Down with capitalist wage slavery!x2
And up with the MDP
To be honest I doubt that Deans tax extravaganza works in the current module as well. There is one big change you didn't take into account: managers can work in all their companies for free. They don't have to pay any income taxes. And now you want to cut the VAT? How do you exppect to increase government revenue like that?
What Dr Pain said - growing wageless economy, consumption tax > income tax
Also, spam=kettle, bought votes😛ot
You failed his 2nd test!
Free your mind.
Liberate your soul.
Become one.
I must agree with Addy on this one, to a point.
PETZ FOR CP!!!
Your tax reform is like the current eUSA's tax's. What about a grain region?
Oh dear Addy, wait till Dean22 starts commenting. I look forward to seeing this debate.
I'm not copying Addy, I just realize he makes more sense than you. For all I know, YOU copied me when I was the only one advocating very very low income taxes and protectionist import taxes. But then again this is all subjective ain't it?
Oh and, original stuff or not, what's the difference if it works? Should economists drop Milton Freidman's theories because it's not original and make up something else instead to be "totally non-conformist"? Your logic there is hard to understand. More like a weak attempt at a personal insult.
tl;dr
Nice picture at the end though xD
Self-Importance Exaggerated.
^ That's ok as long as you get the idea that it's a solid economic plan for eCanada. Hehe
Oh and Dominik, I lol'd p hard at that one.
UGGGHHHH!!!
To hard to choose a candidate!!
Octavian_F: Will make Canada rich as shit
Kronos_Q: Will keep so many noobs in the game
Aeriala: 3rd time's the charm eh?
old system is old
Just two final points before people ask more questions:
1) Without money you can't keep new Canadians with fun and new interesting ways. Social programs DO in fact keep people in this game and it is a necessary socialist evil but it can only happen with government funds that which, cannot be find in the current administration.
2) Why was Jacobi PM for six months when he was taught all these tax reforms? Yes he is a great MoFa but do you not think the economy did well under him due to that?
A lot of you seemed to forget that these policies actually did in fact worked and the reason why the rest of the world used this taxation system is not because they just want to be different than you:
http://www.erepublik.com/en/article/where-were-you-when-i-destroyed-the-economy-in-november--1310110/1/20
^ ooooooooooooo SNAP. Now that's how you win an economy.
And this is why I promptly gave up my own tax theories and adopted Dean22's. Lol
Has the new working-manager change been integrated into this plan?
^ Yes. It changes the levels of productivity which affects demand for wages and affects prices, etc.
Just more data to work with. Same theory applies.
I haven't read any of this, but I will state that Dean was a jerk-face.
Good tip on laundering through the MM. I feel silly for not having thought of that myself. Thanks $$
In addition, the working-manager has changed the game, the working-manager will never pay a cent in income tax. Raising income taxes to 20% is redundant, 20% of nothing is still nothing. Income taxes of 20% will only serve to crucify the new player who does not have the gold to become a working-manager. The new player will end up with only 80% of their wage and struggle to buy food, food that is overpriced by your import tax policies of up to 50% taxation. Above all else, these tax reforms would snuff out a baby boom should eCanada ever luck into one.
x2 x2 x2 x2 x2 x2
well said.
lol @ therealwood.
Hang around on IRC sometimes.
Great advises come to you without even asking.
I highly endorse an income tax set at 20% of NOTHING. Those who will have to shoulder the burden of the social programs and CAF/TCO budget will be the honest working eCanadians trying to get a leg up and the honest working GMs who are trying to manage a company in the new era of working-managers.
Can honest-working GMs who employ honest-working eCanadians compete with the prices set by free-loading working-managers?
So, a working-manager who has a complement of grain-food and iron-weapon companies will be able to put products on the market that only cost 10 wellness to produce. The working-manager will be able to produce the food that pays for this wellness, too, making the production of food and weapons all that more cheaper.
Granted, a working-manager does not produce a huge amount of product....right now, while there are not that many. Once more people shift to the "one-man war industry" model, you will see more product at lower prices (because 30 wellness to produce 500 Grain for 90 Food is not that much operation cost at all).
Meanwhile, honest-working GMs will have to compete against these cheaper products and somehow support employees who have 20% of their wage taxed. It's a tight situation whether it's a high VAT or high income tax. They deserve to have both at a lower, affordable rate.