Ambient on/off

Sign up

 

Continue

Continue By creating an account you agree to the Terms of Service & Privacy Policy

The Economist ~ Economic Policy

Day 1,683, 10:07 by Iain Keers



Dear friends,

Today is the first of my Presidency articles which could be described as an actual policy document. In the last year or so Presidential candidates have stopped writing economic policy manifestos, despite it being by far the most important function of the government. At the end of the day all of the functions of government rely on money as both fuel and lubricant, and getting that money and using it is something which should be carefully addressed.



First of all I want to talk about tax. Taxes are set by congress, but the advice of the Minister of Finance and the government as a whole has a big effect on how congress votes. Each day the tax system in place in the UK brings in a great deal of money. That money is shaved from the cost of products on the market and the wages of everyone with a job in the UK. The weapons market provides the bulk of VAT income and all of the income tax, as it is currently the only profitable industry to hire in.

Recently taxes were raised on the advice of the government. The justification behind this was to better fund the NHS, which is an organisation which provides food free to new citizens. At the time the government was running at a very marginal deficit (a few hundred pounds a day on average). The NHS at the time asked for donations to help fund it, and many people came forward. At one point I offered to match the donations so far (about £78,000) with my own money. The reason I made this offer is because I saw a privately funded NHS as a better alternative to increasing the tax burden on new citizens. Under normal conditions I would be fine with tax, but this was an exceptional and short term situation, and I didn’t see the point raising taxes to cover a brief blip in costs.

Under jamesw’s government efficiency savings and the end of the UK baby boom have meant that costs have dropped significantly, to around £20,000 per day. At present our tax income is £70,000 per day, although this is induced by the addition of rockets and will fade over time as the prices of Q1-4 guns (and the VAT they bring in) drops. I expect it will probably stabilise somewhere between £40,000 and £50,000. Now anyone with basic math skills can see that when we make £40k+ and spend just £20k we are running at a huge surplus each day.

To me that’s wrong. Yes we have the potential to up the military spending, but we should also look at reducing taxes. If elected, I intend to propose dropping income tax to its lowest possible level (1%) and also look at reducing VAT to make our production of weapons more internationally competitive. Low VAT compared with a favourable labour market will make the UK one of the best places to produce and buy weapons.



Now as I said I am happy to finance the UK to a certain extent, but I’m not happy to do so when it’s unneeded. As I am lowering taxes, I’ll also be investing my own finances to take up the slack in the budget.

It’s my intention to invest around £60,000 a day of my money and materials into the UK arms budget for the duration of my presidency, summing up as just under £1,900,000 over the whole 31 day term. This will vastly increase our military potential and allow us to more frequently supply, with more weapons, and to bring in foreign units to back our own national and private military.

Even with a significantly reduced tax income this should more than compensate. It will allow us to spend taxpayer money on the basics of military funding without worrying about buying in extra supplies for exceptional circumstances. Even if our tax income halves, the UK will still have more than enough money to function, in fact it will have a lot more than it currently does now. Most importantly the surplus which is now piling up unused in national coffers will be back in the pockets of the citizens at large.



That is the central tenet of my economic policy, but it does go deeper than that. A couple months ago I asked the Ministry of Finance to once again begin the monitoring of our national income. If elected I plan to vastly increase the scope of our current monitoring function to cover all markets domestic and foreign. Having done it myself for many years, I know it’s a lot of work, but it provides us with a level of information which is utterly invaluable.

It’s my desire as President to not only track all our domestic market costs, but also key markets abroad which can act as strength and value indicators. It’s also my intention to monitor tax and income information for a select number of key countries to provide us with information about relative spending power and alliance muscle, as well as giving us a solid idea of what our enemies have at their disposal. This information will also be periodically published through appropriate channels on the UK forums and ingame, to provide a platform where we can sell the UK as a financial centre and ideal base for business. More big business means more taxes, which means a lighter burden on the citizenry.



I’m going to conclude there as I’m hitting my word limit. But the principle of my economic policy is simple:

1. Lower taxes on citizens and business
2. Extensive personal investment to lift the budget issues
3. Greater level of information gathering and understanding of the economy


With those three things we will simultaneously improve the UK’s income and reduce the tax burden. It’s not something which will last forever, but for one month at least I can help out.

Iain



Ps. I'm not buying votes for any of these articles, cos it sucks. Nobody else should either!
 

Comments

Invalidation
Invalidation Day 1,683, 10:08

IMPERIUM

Darren OKitty
Darren OKitty Day 1,683, 10:10

V

Kravenn
Kravenn Day 1,683, 10:11

Keers for CP

Dru Blood
Dru Blood Day 1,683, 10:11

voted

Stef40
Stef40 Day 1,683, 10:12

Keers for CP

voted

o7

Dan Moir
Dan Moir Day 1,683, 10:17

Good stuff

ivan.sk
ivan.sk Day 1,683, 10:19

Nice : 3

Niemand
Niemand Day 1,683, 10:28

Low tax and low VAT encourages bussiness, I favour that. To compete however with the international market there is the bonuss question. We are with 3 food and 3 weapon bonuss as some big nations (where also much of bigf companies are based) are at 10/10. So it will be difficult to compete.

To get a good governmental income it is good to try that from others on voluntary base (like how NHS gets a lot of donations). This encourages community building and that is the base of national success.

Ivan Terible
Ivan Terible Day 1,683, 10:34

no imperial cult

no vote!!!

jamesw
jamesw Day 1,683, 10:34

The reason we have such a huge surplus is because I've basically put everything I make/own/had, into ensuring we had a month of reserve growth.

Its great that you'll do it too, but the point I've made several times now (and will keep making) is that we need big enough reserves and buffers. Equally, whilst your contributions (when taken in a context of tax cuts) may be enough to 'plug the gap' so to speak, its not really a sustainable solution, unless you plan to fund the deficit permanently.

jamesw
jamesw Day 1,683, 10:36

I should add, it still rings true that without my input, we'd have a surplus (albeit, one which is much less significant).

In truth though, the 'huge' surplus you talk about has only just arrived, and it isn't yet certain that its here to stay. If a week or so into your term we still have that income, I'll be the first person to sponsor or help you cut taxes in any way I can, but it still seems a bit early to be talking about our 'huge' surplus yet.

Skalg von Tuari
Skalg von Tuari Day 1,683, 10:39

people with economic policies worth the name are rare these days

Iain Keers
Iain Keers Day 1,683, 10:45

Niemand: That's true but we also have lower wages, which means our goods can be produced more cheaply.

jamesw: and I congratulate you for that. But we are still way under-budget and after this month there will be absolutely no reason for that to continue.

Danie Fox
Danie Fox Day 1,683, 11:16

So unless we elect you we will be £1,900,000 worse off?

jamesw
jamesw Day 1,683, 11:26

Without me subsidising weps (read: using my own until I ran out of money, and even then, i use my WAM/employees and take back a few k every few days from BoE to fund it), we're looking at a daily cost of  £13,500. Add to that, NHS has also had its food heavily subsidised (ie free) via Donations. to the tune of ~15-20k p/d.

Straight away, thats £33-34,000 per day in expenditure. The fact is, once you take office, unless you cut back on things even more, spending=income.

Iain Keers
Iain Keers Day 1,683, 11:49

I've already committed more than double that of my own money to the cause, so I don't see the problem. Case closed

biiis
biiis Day 1,683, 12:05

hm

dude i have nothing but the greatest respect for you and your knowledge and comprehension.

but here, you got it wrong.


it all comes down to following points:

1. how much is being put for sale in the UK market (any given time period)
2. how much the bot buys in %
3. how much and what the players are buying (food/wpn/raw in %)

so with that in mind the following happens.

1. if most of the players are self sufficient, then they offer surplus stuff on the market

....

biiis
biiis Day 1,683, 12:08

2. the bot buys this stuff at the offered price + VAT - here VAT plays no role, it doesnt matter if its 1% or 25%, so the only question is how much is being bought by the bot

3. most players that are not self sufficient will buy food, but with many government programs around and direct buying, the % is IMHO very low.
...

biiis
biiis Day 1,683, 12:11

the one commodity that is being bought atm are Q1 - Q5 WPNS, without the rocket building the Q5 and Q6 WPNS would have been bought mostly and even then IMHO via "black market" and not from the market.

So the following questions have to be answered:

1. what is the ratio between bot and player buying on the FOOD market. if strongly in favour of the bot, then keep the VAT at 25%

....

biiis
biiis Day 1,683, 12:13

2. what is the ratio between bot and player buying on the WPN market, again if strongly in favor of the bot, then keep the VAT at 25%.


To compete against a 10/10 country is impossible, no matter the taxes. especially with the global currency and movement cost being small as it is.

IMHO if your player base is a lot of 2 clickers, then lower the taxes, but if they know how to buy stuff directly, then keep the taxes at 25%.


have fun

Emergy Maxfell
Emergy Maxfell Day 1,683, 13:46

How in gods name are you making 60k GBP per day?

Or, do you have so much saved up that you can afford to spend that much on a per day basis while in government?

Iain Keers
Iain Keers Day 1,683, 13:54

biiis I would show you where your logic is faulty but it's Friday and I'm tired.

Emergy Maxfell
Emergy Maxfell Day 1,683, 13:54

Also, assuming our first week's income looks good (jw is right we'll have to see what income levels out at after the Rocket buying orgy is over) I shan't be opposed to dropping Income Tax back to what it was before. It's had a very marginal effect on our revenue and was really the wrong way to go in the first place.

I guess I'm an odd one in all this, but my 'comfort zone' for currency in reserve is much higher than jamesw or even Hofkens. Honestly, I wouldn't mind having 10mil in the bank.

Elvis Trout
Elvis Trout Day 1,683, 14:35

>biiis I would show you where your logic is faulty but it's Friday and I'm tired.
well can you tell us on monday?

Also talk about vote buying, £1.9mil phewey. But if you're willing to do that, fair play to you!

Duke of Norfolk
Duke of Norfolk Day 1,683, 14:37

I'm a little uncomfortable with the idea of a candidate offering to fund the government if elected. Although it is no doubt born of civic responsibility and purely autruistic in nature it could be miscontrued as influence peddling. I am even more uncomfortable with the idea that the national government relay on private funds instead of general taxation. It would negatively affect the democratic process and run the risk of subjecting the government to excessive elite influence.

Duke of Norfolk
Duke of Norfolk Day 1,683, 14:39

Regarding the rate of tax however, if there is a primary daily surplus and reserve levels have been attained then taxes should be reduced.

cenodekaMKD
cenodekaMKD Day 1,683, 14:42

Keers for CP

Iain Keers
Iain Keers Day 1,683, 15:08

IRL I'd totally agree Duke of Norfolk. But this isn't the real world. My ingame money is nothing more than the result of my ingame decisions and skill.

If I were to make an article on foreign affairs highlighting my international influence and ability to call in favours with friends, nobody would care. Both these things are advantages I hold because of gameplay decisions.

Rory Winterbourne
Rory Winterbourne Day 1,683, 20:48

Duke of Norfolk summed it up nicely and your reply didn't address any of his points.
- Can a candidate offering to fund the government if elected be misconstrued as influence peddling?
- Could government reliance on private funds from an elected official instead of general taxation negatively affect the democratic process?

wingfield
wingfield Day 1,683, 22:54

sensible stuff as always

Lord Reincarnate
Lord Reincarnate Day 1,684, 02:03

i dont believe that iain is in anyway trying to buy votes with his 1.9mil offer, its just how he wants to run gov. however, i am very concerned about the long term effects. whilst keers is subsidising fine, what about in the future when he is not?

perhaps there is some middle ground where taxes are reduced but national reservses can still be maintained/increased?

Apathetik
Apathetik Day 1,684, 03:08

I'm with Emergy on this one - I do like a large reserve to be maintained mainly because how admins have a tendency to disrupt the game. That said, with a small reserve it is a lot less likely that anyone would do a bunk with the coffers.

Economists like low wages, and I'm against that. I'd prefer a system with high vat, someone in govt buying up stuff for bombs so those with bomb factories can use em. You've always wanted to nationalise industry - here's the chance.

Iain Keers
Iain Keers Day 1,684, 03:56

@Rory: Appleby spent real money to buy a Q6 to help supply the army. Jamesw loaned his Q6 companies, as do countless others. Is all that influence peddling? Be realistic, this game isn't set up for government run companies anymore so we have to improvise.

@Lord Reincarnate: when I leave that'll be up to the new CP, but raising taxes is always an option for them. Just think of it as a one month tax rebate. It's an actual material promise I can assure you I'll make good on

Iain Keers
Iain Keers Day 1,684, 03:58

@Rednoahl/Emergy: A huge reserve is almost impossible to gather. Even at £20k surplus a day it takes nearly two months to gather a million gbp that way. It's not realistic really.

If you want high wages you need to attract foreign businessman to increase wage market competition. High VAT doesn't help that. We are looking at strategic rocket reserve but at £15k a pop it's an expensive 1m damage. For comparison that costs about £500 in Q6 guns for the same result.

Rory Winterbourne
Rory Winterbourne Day 1,684, 07:36

Loaning the country companies and offering voters tax breaks, funded from personal wealth and conditional upon you winning the election, are two distinctly different things.

Danie Fox
Danie Fox Day 1,684, 13:04

Until Poland has much higher taxes we can't be out-compete them on the production front, regardless of what we do. Their 100% production bonus beats our 60% every time, and I highly doubt we will ever hold rubber or saltpetre.

Neil Lewis
Neil Lewis Day 1,684, 16:37

hang on ... I took you to be a poxy socialist with your support for a day of inaction on the hijacked May Day

however ... low taxation ... privately-funded NHS ... you're sounding more like a Thatherite!! Dammit, I may vote for you after all [unless, of course, you gone so far left you've come out into the far right National Socialism]

Apathetik
Apathetik Day 1,684, 20:18

I make rm - costs nothing
I make rm and weapons - costs nothing, and I can donate them.
We work together and everything costs nothing.
Apart from the pay to win bits, it's that simple. It doesn't cost anything.
10 health in a fight though is almost priceless.

In the past I have worked for nothing for the greater good as Iain does now. Back then we needed money for hospitals. Now, we don't need money (or shouldn't.) We need damage - whatever the cost - otherwise Dio will return.

John Stahl
John Stahl Day 1,685, 05:04

Viva España!

 
Post your comment

What is this?

You are reading an article written by a citizen of eRepublik, an immersive multiplayer strategy game based on real life countries. Create your own character and help your country achieve its glory while establishing yourself as a war hero, renowned publisher or finance guru.