The 2 sacred cows of eCanada economic model !
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by Ricky Grimes
Here are eCanada's 2 sacred cow.
Sacred cow #1 !
First, the monetary politic... we want to have the strongest dollars in the game...
Why ? what does it bring us when we don't want to allow anyone to export to eCanada ?
Of course, with an excessivly strong dollar, evry international companies will want to export to
ecanada and make it impossible for our company to compete. The stronger the dollar is, the more
competition there will be... First of all, lets be realistic, there is only 1 ressource eCanada have
been able to export with our economic model... its the Titanium...
Here are the money value of the
3 country that produce titanium:
1 Dollars = 0.027g in eCanada ,0.017g in eAfrica, 0.01 in eAustralia.
So if i want to export titanium, it cost me 1.59X what it cost in eAfrica and 2.7X the cost in
australia...
How can we compete then ? by adjusting our salary.. thats the only solution our economic model
let us... so we drag the salary down... but for a reason... we can't bring it down at the same level of
the other coutry...This make it impossible for us to export to our full potential in evry industry
eCanada possess... It makes it hard to make any money out of our company.
Why ? what is the reason ? Well its because of sacred cow #2...
Sacred cow #2 !
We (businessman and congressman) want to protect our industries so much that we keep on
pumping up the import taxes until we get to 99%... the limit of the game...
For some reason... the canadian industries can't compete at all with the rest of the world in our
domestic market... weird huh ? not really... see sacred cow #1...
So because of that we have became the most communist country of the eWorld... even more
communist than eNorth Korea... We keep pumping up the import taxes and we never feel its
enough... for this reason, it is now impossible to export to eCanada !
The food market is now completly closed from the rest of the eWorld and is free of the rule of the
market ! Some will say this is wonderfull ! Yeah well not really...
This is where the problem start... Since they are not ruled by the external market, the cost of food
is completly subjective and therefore the food company can offer better salary than the
titanium industry, after all, the salary doesn't matter, they only have to higher the cost of food in
eCanada. but by doing this... We higher the salary artificially, and drag the salary
up, so you will say great ! high salary is good, what is the problem ? Well the problem is how can
the titanium company or any other company compete on the international market if our
internal market products keep draging salary up ? The answer is we can barely and this is why we
can't export anything else than titanium in eCanada and that even Titanium company have a
hard time competing with the rest of the eWorld... Our titanium ball are being castrated... with the
economy of the game back on track and when Australia will be freed, the Titanium
industry will fall yet again... we will export less and our company will produce less.
In conclusion, import taxes can be good... but with moderation... and we have to stop thinking that
import taxes is the only way to compete on the market because like ive demonstrated it
has side effects. Think about it, if it would be as good as some people say it is, then why our
company can't compete on the internationnal market ?
What should we do then ?
My solution
First step, stabilize the canadian dollars at 0.02g. 50$ for 1g.
This way, we will release the incredible pressure on our eCanadian company and allow them to
compete on our domestic market and international market.
Then we will be able to lower the import taxes without being invaded by competition... We will make
it easier to manage a company for beginner and even expert businessman with a 1 on 1
ratio with our biggest economic partners in eUsa and ePoland and most countries have 50 to 1
money. Our businessman and citizen will be less victim of the speculation of the market. Of
course the Dollar will worth less but the Salary will adjust.
Second step,
lower the import taxes to respectable numbers... Yes food company will have some competition,
but if for sample we have a 30% import taxes and the cost of food is lower the people will
start to buy more, we will have a more healthy population and the import taxes will generate alot of
money for the government. We will start exporting more ressources, more titanium, more
money for the government, What would be best is to have the food company have similar salary or
just a bit less than titanium so we do not higher salary artificially. We don't want to kill
the food industry, but we don't want to give them the power to castrate our titanium balls and
therefore hurt the economy. By doing this we would help evry other ressources in ecanada and
even some forgotten natural ressource will sudently be able to compete on the international level.
(version française)
Les 2 vaches sacrés du eCanada en terme d'économie !
Voici 2 vaches sacrée au eCanada en terme d'économie...
Vache sacré #1 !
Premièrement la politique monétaire... Nous voulons avoir la monnaie la plus forte...
À quoi sa sert d'avoir une monnaie si forte quand on empêche les gens d'y exporter ?
Effectivement, avec une monnaie aussi forte, les entreprises international voudrons importer au
canada et la compétition sera très forte. Plus le dollars est faible, plus la compétition est forte...
Premièrement, ne nous comptons pas d'histoire, la seul ressource qui peux être exporté en grande
quantité actuellement est le Titane...
1 Dollars = 0.027g au canada ,0.017g en afrique, En australie 0.01.
Donc, si je veux exporter du Titane, cela me coute 1.59 fois plus cher qu'en afrique et 2.7 fois plus
qu'en australie... Alors comment compétitionner ? en ajustant nos salaires reste la seul solution
que l'état Canada nous laisse...
Nous baissons les salaires mais pour une raison X, ont nous empêche de baisser la valeur des
salaires pour atteindre un équilibre.Cela nous empêche d'exporter à notre plein potentiel, cela
empêche notre industrie du titane d'être rentable...Quel est cette raison X ? Et bien c'est à cause
de la 2ième vache sacré...
Vache sacré #2 !
Nous protéger nos entreprises avec des importation de taxes ridiculement élevé...
Il faut aussi souligner que le lobbyisme des entreprises est très fort au congrès pour garder les
taxes élevé...Les entreprises canadienne ont bizzarement de la difficulté à compétitionner avec les
entreprises étrangères, oui vraiment bizzare non ? pas vraiment... voir vache sacré #1 pour la
raison... Alors sous le prétexte que nos entreprises ne peuvent compétitionner,
Nous avons augmenter les taux d'importation un petit peu, puis un peu plus... et comme cela
semblait jamais suffisant, nous les avons monté jusqu'au maximum permis par le jeu...
Petit à petit, le eCanada est devenue le pays le plus communiste du eMonde... Oui, aujourdhuis,
grace a ces taux d'importation farfelue, il est pratiquement impossible d'exporter de la
nourriture vers le eCanada. Le marché de la nourriture est donc maintenant complètement fermé du
reste du monde et n'est régis par aucune loi du marché !
Certain diront tant mieux si elle est complètement protégé ! Oui en quelque sorte... Mais c'est de là
que viennent les problèmes si on analyse la situation...
Puisqu'elle n'est régis par aucune loi autre que par la compétition interne au canada, elle peux se
permettre d'offrir de meilleur salaire que les entreprises du Titane...
En fesant cela... oui, le pain coute beaucoup plus cher qu'ailleur mais quel est le problème direz
vous s'il n'y a pas de compétition ? Le problème c'est qu'elle augmente artificiellement
les salaires... Alors vous direz bonne nouvelle ! Et je vous réponderez encore de la même façon...
Mais c'est de là que viennent les problèmes si on analyse la situation...
En effet, en augmentant artificiellement les salaires, elle rendent la vie impossible aux entreprises
qui eux ont besoin d'un salaire raisonnable pour exporter... En quelque sorte,
en voulant sauver une industrie non rentable internationnalement ou si vous voulez pour quelque
bout de pains... nous handicappons grandement les industries exportatrice du eCanada...
Rendant impossible l'exportation de quoi que ce soit... excepté le titane qui semble bien être la
seule a pouvoir survivre a ce handicappe et encore là... ils sont en mauvaise position pour
compétitionner... Nos boules de titanes se font castré... et que lorsque l'australie sera libéré, cela
risque de donner un coup à l'économie eCanadienne...
En conclusion, les taux d'importation... oui mais comme toujours... mieux vaux y aller avec
modération... et en se moment... c'est définitivement pas cela qui est appliqué au eCanada...
Pensez y... si ce serait si bon pour les entreprises canadienne... alors pourquoi est-ce que les
entreprises eCanadienne sont incapable de compétitionner avec le reste du eMonde ?
Que devrions nous faire ?
Les solutions ?
Première étape, stabiliser le dollars eCanadiens à 0.02g soit 50 pour 1.
En fesant cela, nous allons relâcher la pression incroyable qui est exercé sur les compagnies
eCanadienne et nous allons pouvoir baisser les taux d'importation à des valeur respectable sans
être envahis par le reste du eMonde ! Nous allons pouvoir exporter d'avantage ! Nous aurons un
taux 1 pour 1 avec les pays alliés que nous exportont rendant la gestion des entreprises beaucoup
plus facile au eCanada et les compagnies et citoyens moins vulnérble aux spéculation du marché...
Oui, le dollars vaudra moins... pas de problème, les salaires vont suivre...
Deuxième étape,
Baisser les taux d'importation a des valeurs respectable... Oui, les compagnies de food auront un
peu de compétition, c'est vrai, mais si par exemple le taux est à 30%, les entreprises qui
exporte au eCanada, vont remplir les coffres du eGouvernement et les citoyens paieront moins cher
leur produit... En fait le mieux serait de trouver le taux qui rend les compagnies de food
aussi compétitif que les entreprises de titane sinon un tantinet moins si nous voulons être certain
que nos salaires ne sont pas gonfé artificiellement sans pour autant tuer cette
industrie. En fesant cela, peut-être même que nos autres ressources naturelle pourront revivre un
jour... qui sait...
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Comments
Bon article Neo!
Yes to this.
you need to use import taxes as a tool to peg the market
Your concepts are spot on, unfortunately, we don't have a real economist in the current government, they are busy failing at something as simple as the budget - I don't think they have the smarts to tackle monetary policy
Now, when can I have my Machete Rebel?... (or is this the mysterious "phase 2" I remember reading about?)
A valuable contribution to a much needed debate.
This may help you
http://i1034.photobucket.com/albums/a423/openRepublik/demog_ca_101610.png
everyone around here is so afraid of change. The beauty of this game is that you can change it one way and if it doesn't work out you just change it back.
First you need to make an argument that there is something wrong with our economy - what is wrong with it exactly? - it generates unparalleled wealth that allows its citizen greater relative purchasing power internationally than any country I am aware of - look at the list of the Canadian citizen ranking - over half of the top 100 citizens living in eCanada are actually non-citizens - we don't need to export to the world if the world is already coming to us
Luminara, what is that, I need one for Switzerland!
Voté!
Bon article Néo.
.
J'aimerais ajouter que nous ne bénéficions presque plus de l'avantage comparatif d'une économie fermée, soit des salaires élevés en gold comparativement aux autres pays.
Par exemple, le Canada avec son économie fermée (99😵 et les USA avec leur économie ouverte (1😵 ont tous les deux un salaire maximal (Guru😉 en gold d'environ 0.4 gold. L'Espagne a une économie partiellement ouverte (
@Rolo Tahmasee:
Commence donc par nous redonner notre argent avant de nous faire la morale maudit voleur!
lrn2macroecon
@ Rolo, this is the 2nd. time you've posted some derogatory comment regarding eCan's players being less than able to create a budget.
Do you not see the stupidity of that type of comment coming from one of the biggest eCan theives of all time? I'm really beginning to think you have a screw loose, no joke.
You didn't park your char with Jb by any chance did you?
Rolo is a Canadian Hero and Legend.
I just proposed step 1 to the congress, might as well be my last proposal at the congress.
http://ecanada.cc/forums/viewtopic.php?f=40&t=10160&p=163027#p163027
@Hosehead Holdings,
I explained what is the problem in my article. Why would we want to close our economy when we could export our goods to our allies and strenghen our army and the one of our allies. When the economy was a mess, our closed economy was doing no better no worst but now that the rule of the game changed and evrything is about consumption, i don't think we can keep this economic model. We aren't doing much more money than other country but the cost of living is so much more...
The canadian market will collapse with the growth of the Black Market if we can't compete with other country in term of cost of goods.
salaries are too high and until idiot owners realize it nothing can be changed
I'm 50/50 on this
1. I'd like to see import taxes go to 99%, we have no need for foreign imports.
2. The government should print money and lower the currency, this should solve the problem with being unable to export.
@Stelewrat
Whether there is money in the treasury or not has nothing to do with the ability to make a budget
The current administration, through lack of understanding of monetary and economic policy are not using all the tools at their disposal to maximize the efficiency of the budget
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"salaries are too high and until idiot owners realize it nothing can be changed"
😁exactly that😁
I stopped counting how many people do not get thze monetary module of eRepublik and say "we have to lower the CAD", just because the wages are to high. The price for Labour and products around the world is measured in GOLD. It makes no difference how much more worth your currency is compared to the US, or whatnot. When you lower the CAD the wages (in gold) will go up again -> no achievement, just higher printing costs.
Just note that there are more than 1300 (including me) foreign workers in Canada.
This article is total fail, total economic fail
[removed]
^ Indeed. But beyond that, there is no problem with keeping foreigners out so long as we have the products to support ourselves and I believe we do. Within an individual nation, the exact gold exchange rate has no effect. If it is higher, the wage dollar amount is lower but the gold made is relatively the same. The prices are lower per dollar but relatively the same as they would be per gold if the the dollar to gold ratio was lower.
While it does make exporting more difficult, quite frankly the only thing Canada WANTS to export is Titanium. And we can do that. Right now I am making decent profit with my company.
Please tell me if we can support ourselves with our own industries why we WANT foreign goods? To export our wealth to other nations so that we can have slightly lower prices? You have never explained why we truly would WANT foreign goods.
So this technique works fo evry country except eCanada... :/ The admins must have hardcoded some special rules for eCanada...
@Dr.Pain, you have to read the full article to understand, lowering the CAD is not to lower the wage, its to release pressure from the international market so we can lower taxes without being invaded so that food company won't drive salary up and hurt other business.
@Addy, the only thing that fail is your comment, i believe in constructive criticism, if somebody think we shouldn't do what i say, bring arguments, not insult. As of yet i haven't seen much argument.
This is SO true, I had to close my stone company because I couldn't offer a fair salary to my employees and they were leaving.
its true tho, i own a food company... when i want emplyes i can afford to pay them 16 cad but i dont think stone or titanium companies can
Agreed, Canada is Communist, let move to socialist or capitalism, its less radical...
Just and plain agreed.
NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO!
1 GOLD = 1 CAD!
Luminara wrote "Just note that there are more than 1300 (including me) foreign workers in Canada."
DING Fricken DING - we're such a "fail" people flock here from the world over to be employed here.
If eCanada is a great place to work and also to run a business, what exactly was the problem again?
The simple fact is, Canada has a labour shortage! There are two ways to handle a labour shortage, have high wages (like we do now) that attract players willing to be mobile, to move to Canada and work here, earning big bucks they can turn into gold. This has the side effect of also increasing the demand for food and weapons, as these workers can fight from eCanada and need food to fight and/or be productive.
Wages will not come down until the demand for labour is met.
The other way to bring down wages, is to dramatically lower taxes, opening the door to a wave of cheap imported goods and cause a wave of foreclosures and bankruptcies. That will reduce the number of companies bidding for workers.. This will bring the wages down more quickly of course, as well as the demand for food and weapons. Yes, that means that titanium and stone would soon be able to compete for the shrinking pool of workers as the foreign workers leave. After all now that their home companies and economies are profiting off of the devaluation of the eCanadian economy, there is no incentive to stay.
Both options fix the labour problem, the first option is slower, but doesn't destroy thousands of gold worth of companies belonging to fellow eCanadians... The second option brings salaries down more quickly, but also once again relegates us to fringe mediocrity.
I vote to stay the course we are on, the strong buying power of the CAD, plus the influx of workers will bring salaries down to a stable level! Look, every time the Admins make a change, it takes MONTHS for the effects to fully shake out of the economy, be patient, not panicked!
Goran Thrax
Just a question, would dropping the income tax a few notches help attract for workers and help out companies with the high wages.
It could, if we advertised that fact. The big thing is, without a detailed budget, we can't know how much the government can afford to cut.
Goran Thrax
RE: Sacred Cow #1. Dropping the value of the CAD is a bad idea. By artificially dropping it, you will create a whole new set of problems, mostly because wages always take time to catch up to CAD increases/decreases and therefore you will have a whole whack of new foreign investors looking to get rich quick. Eventually wages will skyrocket and businesses will shutdown. Then the system crashes and we get into yet another recession.
What the economy needs is stability. A stable currency (whatever it is pegged at), a stable budget and government, and a minister of finance who has the ability to convince congress to raise and lower taxes as needed.
An open market is not always the best market.
Actually, the CAD is dropping value by itself, we are now at 0.026, we were 0.028 1 week ago. We are not that far from 0.02.
Seriously, if communism would be a great economic model, then how come no other country is using it ? Problably because it has more downside than upside.
I agree with you Sir that we need stability, wich has not been the case for a while now... But its better to let the currency devaluate to 0.02 wich could very well be done by itself before we start to stabilize it.
People should stop comparing RL economies to erep economies
Our economy works completely separate from other countries- from the rest of the world, even. We are not tied into international price trends. Because of this, our currency works different, our salary is on a different scale, as well as our prices. We produce what is profitable; what is in demand.
How does that work? well, when something is in demand, the price goes up, the companies in that area become more profitable, and suddenly they dominate the job market.
The rest of the world works the same; only on a much larger scale. The reason our currency/salaries/prices is different from everyone else is because we have completely excluded ourselves from that system, effectively creating our own miniature system.
As for the currency right now; its back up to .027. I have no reason to believe it will fall further, unless the government is planning to do bonds.