Medium Grain
Jacobi
I run Carpenter Industries. My original reason to play erepublik was not to run Canada for six months, no, it was to run a business.
My first company was CI Foods. Still have it, its all the way to quality four now though my political career has meant its taken a back seat time and time again. I also, in my newbish wisdom, purchased a grain company to feed my food company named CI Grain.
It was Medium Grain.
Not thinking about why it was so cheap, and not thinking that the game would put a medium designation without it being not completely useless, I upgraded it to Q2 and was very proud of myself. But try as I might, I couldn't make a profit.
So I started haranguing Congress. I started lobbying for the domestic grain industry. I had plenty of debates with the Minister of Finance at the time, Alexander Rearden. I thought so strongly that I could compete as a medium company if only this or only that went my way. And mind you, Q2 grain at that time sold for 70 cents.
No. At the end of the day I was being a newb. I didn't understand economics because I didn't have the experience at the time to realize that medium grain was a non-starter. Having been convinced by Mr. Rearden, I sold my grain company at a loss. I was sad, but I learned a valuable lesson about how erepublik works. Eventually Alexander Rearden would run for President, and so confident in my ability to learn, asked me to be his Minister of Finance if he won.
And we lived happily ever after.
🙂
Fast forward to today. Congress has euthanized the domestic Iron industry which suffers from the unfortunate fantasy called medium productivity. It was a particularly brutal blow which had none of the niceties that were afforded to me by Alexander Rearden. The iron industry in Canada is dead, and regardless of what's being said here: http://ecanada.ws/forums/viewtopic.php?f=20&t=5201 it isn't coming back.
What's more. As long as Canada only has medium iron (and considering statistics on iron production in real life, it should have a high iron Quebec) it will remain dead. Any Congress in the future that decides to resurrect it because of roleplaying (rea😛
misplaced Quebecois nationalism) is committing economic lunacy.
To those people who invested, ran, and hardly profited from iron companies in Canada, you have learned a valuable lesson about economics in erepublik.
You could bitch and complain about it, but take it from someone who has been in your shoes:
It's not going to do you, or your iron, any good.
John "Jacobi" Carpenter
Comments
Firsties
Silly domestic medium iron.
Yes.
Who said Prime Ministers only spew nonsense? 🙂
Voted hard!
I guess I'll take my return to Canada (after fighting for CAF) and taking a job in an iron company in the same spirit then.
It still sucks to be forced onto an unexpectedly pathetic salary for three days though.
Update: my iron employer was kind enough to fire me. So only one day of pathetic overtaxed work.
Thank you for preventing me from making a huge mistake in the future. Although I have been seriously thinking about buying or creating an iron business I was also leaning towards having it out of country because of the non-high status.
You say "As long as Canada only has medium iron" is there any way to improve a resource? I am expecting a no but would love to hear a yes if it is possible.
I should also mention that the iron companies will not merely be sold at a loss: they will be almost worthless.
Who would make a company based on any non high region? wut?
If you want to buy an iron company in Karnataka and run it there, I think that would be okay. And export to Canada. Just a thought.
Very well said, Mr Pres.
Ever so true, the Qubecois Nationalist will try role playing their way too kicking the dead horse that is Our Iron Industry, and we will do nothing but waste valuble Gold that could be put towards war.
voted
I just find the whole thing distasteful, if it is a mistake to invest in a iron company it is that persons mistake to make. This talk of gold being wasted, it is that persons gold to waste and none of it would have been spent towards any war any way.
There are no lessons like a hard lesson and if there is no profit to be made people will learn the lesson. This was done in a very callus method and the way some congress members spoke in the open door congress thread shows how much respect they have for average ecanadians.
I truly feel for any person that worked and saved for a company only to have congress kick him between the legs.
I would be discouraged if I made a poor business decision but this breeds bad feelings and the lesson learned was not the lesson intended.
High Iron for eCanada!
Good article. Voted.
I sell 120 iron per gold. PM me.
Thank you Mr. Prime Minister!
This move will provide more labour for the Oil, Diamond, Grain and Wood sectors.
@Jake Bravo
"I just find the whole thing distasteful, if it is a mistake to invest in a iron company it is that persons mistake to make. This talk of gold being wasted, it is that persons gold to waste and none of it would have been spent towards any war any way."
While the risk is everyone's right to take - it is NOT the right of those risk takers to impose their risks on the rest of the nation by keeping labour out of efficient sectors and companies while continuing to pour more and more gold into those companies just to keep them afloat. I buy iron for 3 weapons companies and it would put those three companies out of business to buy Canadian iron - they CANNOT compete - therefore the GMs MUST subsidize their companies.
That gold can be better used in the overall economy.
As for your saying "This was done in a very callus method..." is lacking of the overall picture.
The persons whom the Prime Minister referred to when he said "misplaced Quebecois nationalism" took the tax change VERY personally - filling my inbox with hate mail and publicly calling me a racist and a bigot (Paul Emix) - which was completely unnecessary.
The response from "Quebecois nationalists" was wholly illogical and led the dialogue out of the realm of national logic and into the realm of lunacy.
Your claims of callousness are unfounded - as anyone who can read will verify here: http://ecanada.ws/forums/viewtopic.php?f=40&t=5138" target="_blank">http://ecanada.ws/forums/viewtopic.php?f[..]5138
Congress even informed the public that the tax change was GOING to happen - something that is VERY rare.
@Jake Bravo.
I rather respect you, but it was obvious that people were not learning the lesson at all, and we're continuing to try to make something of the iron industry.
If they want to waste their gold, they are welcome to try to continue operating their iron companies...its not as if we've nationalized them. All that's really happened is that instead of bleeding money for a long period of time living off a slim hope, they'll gush money for a short period of time and end their experiment early.
I actually think what Congress did was probably the smartest thing in the world to do. The experience I had with medium grain, a few months of trying whatever I could to keep that company functioning was a waste of time and money that I probably wouldn't have experienced had I saw a 50% income tax. I didn't have the luxury of a prohibitive income tax to deter me....now people looking to invest in Iron do as you saw from AHodge's post.
I feel for these people because I was once one of them. I know exactly how it feels to sink money into a loser and it really really sucks. However, this is to encourage them to put their time in erep towards something more profitable, and also to discourage future players from investing in a barren wasteland.
Have to agree with this.
"My original reason to play erepublik was not to run Canada for six months, no, it was to run a business."
Running Canada is a very good business 🙂
3 things to do before buying any company.
1. If its not in a "High" region or the product does not have a decent market....walk away
2. Check the cost of production, i.e wages + raw mats (if applicable) and see if there is any profit in it.
3. AGAIN Check the market place to see if its a viable market. After all you can make the best "gift Boxes" in the world but if nobody buys gift boxes your screwed.
If you want to be realistic about resources, shouldnt Labrador have a gold mine? 🙂
This government is out of control. Who are they to use tax's to influence the economies of the country. Last time I checked we are not ruled by a communist regime, but it appears that we are. I will not be casting a vote for any incumbents in the nest congressional and presidential elections. I would hope that other citizens would follow my lead. Next, these "leaders" of ours may tell us where to buy our food supply from and what quality houses we can live in. All for the greater good of the nation.
NOT IN MY CANADA
While it is an unfortunate thing, the PM is 100% correct on this. When you see most of us higher level players who have been there and learned the lesson lobying against the iron industry, you know there is something to it.
Let us be profitable in the area's we are rich in.....
Oh my god Crock Crosby, that is hilarious "Who are they to use tax(es) to influence the economies of the country." I hope you aren't asking that in all seriousness because that is precisely what governments do. Every single government anywhere in RL and eRep.
In RL, Minnesota, USA, has a high iron region. But not in eRepublik.
The solution is to set up an iron company in Spain or Greece, and ship it to Canada.
The word "euthanize" is so appropriate.
Props to you Jacobi for getting behind this.
Addy
How about threats to National Security?
How reliable are our Iron supplies from our allies? Do our allies have High Iron region on their territory?
It seems like the Iron industry should neither be encouraged or discouraged.
Our ally's high iron are quite secure.
If Spain, Greece and the USA somehow lose all their high iron - then Congress would drop the Canadian iron income tax to 1%.
However - it is HIGHLY unlikely that that will occur in the near future.
Being so interested in eCanada economy, the government could have bought the Iron companies off the citizens hands...
😁^ And business is Good!
Why should the gov't buy up iron companies?
This ain't the auto industry - the IRON was NEVER profitiable, and those who own those companies should have done their due diligence
like read about starting a company on the eRepublik Info pages:
http://wiki.erepublik.com/index.php/10_Things_You_Should_Know_Before_Starting_a_Company" target="_blank">http://wiki.erepublik.com/index.php/10_T[..]pany
By the way, we're at war now...
ktxbai
Good article. It is mathematically impossible to operate a medium iron company at a profit compared to foreign exports. Period.
Oh my god Crock Crosby, that is hilarious "Who are they to use tax(es) to influence the economies of the country." I hope you aren't asking that in all seriousness because that is precisely what governments do. Every single government anywhere in RL and eRep
Tax's are meant to raise funds for social programs, infrastructure, and national defense. In a free country, aka a capitalist country, the markets decide witch businesses survive. Not the legislators in a national assembly.
Any type of inefficiency in erep business is fatal, prices are razor sharp - running a raw mat company in a non-high region is about as inefficient as it gets.
But then again, we are a nation that also draws citizens out of the fortress regions to inefficient non-Q5 hospital regions.
Why not apply the same tough love there and remove those hospitals to force citizens to live more effectively in "5 fight" regions with fortress walls?
Durden a dit : ""The persons whom the Prime Minister referred to when he said "misplaced Quebecois nationalism" took the tax change VERY personally - filling my inbox with hate mail and publicly calling me a racist and a bigot (Paul Emix) - which was completely unnecessary.
The response from "Quebecois nationalists" was wholly illogical and led the dialogue out of the realm of national logic and into the realm of lunacy.""
Si tu as quelque chose à me dire pourquoi ne le fais-tu pas en mp plutôt que de parler de moi dans une discussion publique où je ne suis pas présent ? C'est un comportement immature et hypocrite
And, when one generalize falsely the words of another person to tag a whole group with it then he is acting like a racist, indeed. The choice is yours alone and you can not blame anyone else for that.
Paul Emix is not a racist.
Don't have any other arguments than insults that no one can check if they're real or not?