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Stagflation
Greetings Canada,
Here is yet another news paper about the troubled economy of canada.
What started in the food and grain sector now has reached a situation where the labour market starts to take the hits. Unable to export the canadian market is doomed to domestic sales. Yet this has resulted in a huge oversupply which pushed prices down to all low levels. Accoording to the website ereptools.pl stocks are still increasing even though many have already lost there jobs. This implies further price and wages cuts and further job losses before we reach a new stabile equibrillium.
At the time of writing there are no skill 4 job offers on the market and only 1 skill 3 job offer. Yet more job losses are to come, further more the new surge of germans has increased the amount of workforce reducing wages further.
The food industry is often seen as the basis for a minimum wage, since evry1 needs food a minimum wage has to be larger then Q1 food. Now that prices are dropping even further wage demands will ease even more combined with the excess labour that is in the market. These two will ensure further wage and price drops untill eventually all efficiency gains are won. At that point stock building will become an even larger issue and at time+1 or (+2) for that matter we will see a lot of companies firing employees cause of the huge stock build ups that have happened.
The next phase will be an ugly phase, with wages down to record lows, sales will drop and even more will have to be fired. Export still is not a solution cause of the high tarives that plague the Eworld. At this stage inflation has turned into deflation, as companies try to dump there stocks to stay in bussiness. More companies will turn over and drop dead untill stocks have dropped to low levels. This period is called Stagflation. A situation where no economic growth is present and where products get cheaper and cheaper.
How will this story end? As wages drop employees will start to look abroad. The strong will buy a ticket and find work over sea. The weak will stay resulting in a crippled backwards Canada.
Now how can this be broken? At this point I do not have a solution.
Here is yet another news paper about the troubled economy of canada.
What started in the food and grain sector now has reached a situation where the labour market starts to take the hits. Unable to export the canadian market is doomed to domestic sales. Yet this has resulted in a huge oversupply which pushed prices down to all low levels. Accoording to the website ereptools.pl stocks are still increasing even though many have already lost there jobs. This implies further price and wages cuts and further job losses before we reach a new stabile equibrillium.
At the time of writing there are no skill 4 job offers on the market and only 1 skill 3 job offer. Yet more job losses are to come, further more the new surge of germans has increased the amount of workforce reducing wages further.
The food industry is often seen as the basis for a minimum wage, since evry1 needs food a minimum wage has to be larger then Q1 food. Now that prices are dropping even further wage demands will ease even more combined with the excess labour that is in the market. These two will ensure further wage and price drops untill eventually all efficiency gains are won. At that point stock building will become an even larger issue and at time+1 or (+2) for that matter we will see a lot of companies firing employees cause of the huge stock build ups that have happened.
The next phase will be an ugly phase, with wages down to record lows, sales will drop and even more will have to be fired. Export still is not a solution cause of the high tarives that plague the Eworld. At this stage inflation has turned into deflation, as companies try to dump there stocks to stay in bussiness. More companies will turn over and drop dead untill stocks have dropped to low levels. This period is called Stagflation. A situation where no economic growth is present and where products get cheaper and cheaper.
How will this story end? As wages drop employees will start to look abroad. The strong will buy a ticket and find work over sea. The weak will stay resulting in a crippled backwards Canada.
Now how can this be broken? At this point I do not have a solution.
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hi,
I am a director of national companies of Bosnia&Hercegovina, also i work as economic adviser of Bosnian president (this is my 2nd role on this position). I also, have some companies, including one in Canada. Its q1 food company called "Wolverine". I also have a q1 food company in Spain, which now doesn't work (due to import of cheap food). I also run national companies, so that is my 3rd q1 food company.
I notice in last period, that sales of q1 food in canada is much lower than in Spain (time needed to sell it for lowest price). So that means only or there are very low active players, or people buy higher quality of food (what i find strange, due the fact that there is a TW each couple day). I also got some workers with low wellness. I guess other have problem with this.
What i suggest to You (to canadian Government) is next:
first of all, you need more wars. Wars is good for profit (Rule of Acquisition #34). Why? This will bring up a production of weapons, therefore, move the labor from food companies to weapon companies. You don't need to enforce real war or something like that, maybe another TW with someone.
Spain tries to do this by lowering import taxes. They hope that this will move labor force from food to weapon, and therefore, made them leaders in weapon production. I think this will only hurt their economy a big time. In peace, and when countries are trying to protect their economy by higher taxes, will result only to a crash of it, because, only production of food is bringing some profit. Only possibility is to a make socialistic country, and therefore, all companies could be bought from state.
Only what i see here as an a solution is lowering CAN, so export could bring profit (house, tickets, timber, etc) and making some wars to make higher production of weapon.
Exactly why you should donate to the war fund (Guerra Organization) to bring more training wars to Canada.
Donate what you can, you'll be helping yourself and the country!
Well, I am done giving economic advise. I had a lot of fun doing it. You call can figure out the mess I left you, I am going to keep working at my comfy government job and training.
AR why would you admit you did a horrible job as MoF unless you didn't want MoF or PM and your retiring?
War...
What is it good for?...
Absolutely somethin!
(Its the economy, stupid.)
war is one way, fiddling with the taxes is another
The problem with the Canadian economy is not enough consumption. You either have to buy your own products or export them. A war will help you buy your own. Seeking lower import taxes with your allies will help you export.