Join the new world

I’m running on my 6th day since I arrived to eSerbia, and I must say, it’s been a rather joyful experience so far. As you may have read in my past articles, it’s not my intention to just come here benefit from the good salaries and past by. I also am interested in sharing some of my experience with you guys, good allies and friends, and maybe even help eSerbia become bigger!.

Some of you may have read my article on how the RSD can be taken to 7,87 per GOLD and report on a +200,000 GOLDS fortune for the eSerbian government. Now I’ll talk about a form of government subsidy and that can become a macro booster for whole countries.

Rapidly increasing military ranks, experience points and making GOLD on the side.

So your country is filled with young players (a recent babyboom) but you are on constant war and need to be ready to face strong enemies in the short term. You need those young players to become coronels and generals FAST, not to mention… you are in dire need of GOLD. What can you do?

You can subsidy the cost of weapons and bread for the whole population!

The subsidy.

In order to subsidy things in eRepublik you need to build a system where the government offers a better price for something than what the market does. How can you do this with weapons and bread?

In order for players to buy weapons and bread they need to have RSD to buy them off of the market. How do you give a better price than the market, without intervening directly in the market and injuring your own private companies? Use currency advantages!

Say the RSD is currently valued at 60 RSD per GOLD. In order to subsidy weapons and bread, you will create a fund where people interested in acquiring the subsidy will deposit GOLD, and in return they receive a credit of 90 RSD per each GOLD they deposit (a 50% subsidy of current market value), that they end up receiving in weapons and bread instead of actual RSD.


The players don’t receive their credit in RSD, they receive it in weapons and bread. How do they benefit? Well with market price 60 RSD per gold, with 1 GOLD I can buy 20 breads of 2 health at 12 RSD and 12 Q1 Helicopters of 1 use at 4 RSD, with the government subsidy I can buy 30 breads of 2 health and 16 q1 Helicopters of 1 use with the same GOLD, that is I can buy up to 50% more!

The economics.

In the before mentioned example the subsidy is set at 90 RSD per GOLD and the market price is at 60 RSD per GOLD. How can this be business for the government?

It is an eRepublik rule that the cost of currency for each country is always 0.005 GOLD per currency (the cost of printing money). So each GOLD actually means 200 currency for the government, always.

So with a 90 RSD subsidy, the government collects directly 110 RSD for each GOLD it receives. On top of that by buying directly off of the market the weapons and bread they will later distribute, the government covers part of the 30 RSD differential with the VAT tax, and “finances” the remaining with the income tax effectively reducing to nearly 0 the complete cost of the subsidy in 2 to 3 days.

Ultimately the government is collecting GOLD without directly injecting it into the monetary market, and it’s massively stimulating consumption that favors private companies.

The Military

The country’s potential damage in battles automatically increases to nearly 50% because players can buy 50% more health and 50% more weapons for the same price they did before.

In turn, a population that hits more often and/or with better weapons is one that will be more rapidly increasing its military rank and its experience points, reducing the normal time it would take one to grow from corporal to colonel or general by almost half.

This way a whole eCountry not only increases it’s damage instantly, but it also accelerates in military strength in the long term.

My experience in eArgentina.

In my first tenure as MoEconomy in eArgentina I implemented this system of subsidy. In the months that followed it grew up to become a very complex system with up to 12 organizations fully dedicated to collect GOLD and distribute weapons and health for up to 500 clients.

In the military aspect we where producing FM’s in 5 months time, in barely three months after its implementation, the general country damage grew up to 120% and our mobile forces where able to produce a decent damage even though there were few.

Economically, the general consumption of goods was juiced up and the government tax collection doubled, the subsidy program got to generate up to 1,200 GOLDS for the eArgentinean government per month, and as more players spent less gold and reached faster new experience levels, more companies started to be created in eArgentina.

eSerbia.

Such a program in eSerbia would be of enormous proportions compared to eArgentina, just on the basis of it’s bigger population and access to resources, it could probably need nearly 50 different orgs to attend to 2500 clients, move between 7,000 GOLDS and 630,000 RSD per month, and double the total eSerbian military damage in 2 months.

It is indeed a very adventurous program, but it has already been tested and proven to work, a balanced mix of military and economic stimulus in a form of a subsidy.

There are other forms of subsidies that stimulate other aspects of an eRepublik country’s economy that could benefit eSerbia. But those I will write about in another article.

Thank you so far for the warm welcome guys! 😃