The Passive Economy
•
by Jack Delany
The current Irish economy can be said to depend heavily upon State based industries, with companies such as Irish State Housing and Irish State Weapons being two of the major players on the unskilled employment market. The question remains however, whether a government-based domination of the human resources market is beneficial to the economy.
Ireland’s economy is not in good shape. Inflation lingers just above 5% and imports heavily exceed exports. In short the Irish economy is bleeding money and an air of panic surrounds the worth of the pound. This is partly due to government’s dominance in the job market. With Irish State companies paying a standard wage of £5 they will discourage players from establishing companies should they have to compete with such high wage prices. The implications of this are massive. Fledging companies are under a burden to make a good profit immediately or otherwise fail, due to astronomical overheads and unjust competition in the marketplace. The Irish government is making the economy uncompetitive along with devaluing the Irish Pound by issuing vast swathes of money to employees at its whim. This results in sovereign legal tender becoming worthless in the real economy, and the cost of goods and services skyrocketing.
Remedies to this problem include the withdrawal of Irish State companies from the market. This would of course have to be done gradually, as the immediate withdrawal of a major economic player would leave hundreds unemployed in the interim. Alternatively wages from State companies could be reduced dramatically to bring them in line with the actual value of labour seen in private industry. A different option to State presence in the economy is State investment in fledgling companies. Once a company is established, the State will in turn claim taxes from the goods purchased from the company, allowing it to receive more money in the long term, and regain more than its investment. The increased growth in the economy resulting from this action will undoubtedly drive down inflation and reduce trade deficit. It may even instigate a trade surplus. In order to encourage economic growth the government should also abolish all import tax on raw materials as such are the basis of the finished products of the economy. Putting a tax on them simply diminishes productivity. Contrary to this, taxes on the importation of finished products must be driven up in order to protect the Irish economy from the economies of those with more competitive wage costs.
Too often voters fail to take economic mandate into account when electing government. I am optimistic that economic concerns will make a greater appearance in the manifestos of potential leaders in the future.
JD
Facebook
Twitter
Discord
Comments
The eRep inflation rate is usually wrong, as within the last week it was deflating!
Secondly, wages are actullay low in eIreland. In most other countries workers are paid on more of a sliding scale, recieving very little at skill 0, but by skill 4 they can be earning 0.5 gold a day. Whereas in eIreland 0.1 is the best someone can hope for.
You should check ereptools.pl for this sort of info.
AT*
What I'm saying is that Ireland should have that sliding scale, so that new companies are more easily established, allowing the economy to grow. Irish State companies artificially impinge upon one's ability to do this. Wages are only relative to the commodities on your market, the commodities being at an inflated price due to high government wages for the unskilled.
We can't eliminate these state companies because they provide jobs for hundreds and even if we did it gradually, there would not be nearly enough job openings for these unemployed. Also, these state companies provide us with weapons we'll need in wartime, and cheap housing for eIrish citizens.
Eliminating these companies would be a grave mistake
Gradually withdraw state companies from some of the more luxorious product industries but keep a monopoly of housing and food in check to ensure food and house prices are solid and avaliable for citizens at a fair price, and maybe offer higher skilled work for the state companies, it seems to me that the nationalist employment is a sort of starter platform for people to go on to work for private businesses which save for an obvious few all seem to be doing fine yet aren't as employing as many as they should for maximum productivity.
But with the state owned companies they seem to be taking what I've suggested to an extreme level and employ by the hundreds without any consideration of skill ability, thus instead of employing more highly skilled workers they instead employ 0s and 1s which exceed the maximum efficiency rate by over 5 times it's recommended standard, thus we're paying workers absolute near nothing to do nothing (which if you count the total payroll you would see that the company is haemmorhaging hundreds of IEP per day in built up low wages for unecessary work).
So what I'm suggesting is for the state to withdraw from luxury commodity production to allow small business to grow so people can be employed more usefully. What I am also suggesting is that Éire begins trading with not just the UK (which frankly is parasitic of us) but also the whole of Atlantis, Indonesia, Norway, France, Spain, Mexican, the recently founded states and the US to improve trading links and increase Éireann status in the New World.
@Imp, its not easy to trade with all those people because each country you want to trade to you must pay 20 gold for an export license. Its expensive and not many want to pay the price.
Also, don't trust any erep stats because they are never right.
Then give the traders a loan or grant of 20 gold each after reviewing their company, there has to be money spent to get this country off the ground.
There should be no instances where the government-owned companies partake in the food market. You can't have a company such as that with such a huge advantage over the other companies in the field. We already have cheap food and enough of it to satisfy people's needs.
Well actually, no we don't, I'm slowly dying because I can't afford quality 5 food, there's never Q4 food anymore and Q3 food isn't enough to recoup wellness. The state needs to ensure the survival of it's citizens, something privateers won't do.
@Imp I reckon you're dying because you're working for a Q4 employer. You should work for someone less demanding until you've got a really good house...
AT*
I'm actually more concerned about getting the gold to get in to congress than the IEP for a house. Though unfortunately that isn't the case as I gave my last 3 gold to that Leo Ruby to create a Welsh/Scottish Kingdom or whatever power hungry scheme he's up to now.
Current increase in the minimum wage was also a nice kick in the jibblies for the private industries. Basically you cannot have a workforce with skills of 0 or 1 anymore in the private sector.
Even people with skill of 2+ will be struggling to make any kind of profit for the company if their wellness is low.
It is easy to see how healthy business life is in eIreland when you count how many companies are selling items and at what price. Just make a quick comparison to other countries.
If you are interested in price level you can change prices to gold, but that is irrelevant. There is naturally some fluctuations in price because of history, tax rate, and of course amount of natural resources count.
Still after any number of factors, eIreland has just handful of grain producers and only for Q1 and Q2, which is alarming to me! eIreland needs change.
How about instead of getting rid of the companies, just reduce their pay down to normal levels but give the workers benefits, like free food and gifts etc..
If I was to take a job in the private sector I would have barely enough money just to survive. If however I was working for $1 but got free food and/or gifts when my wellness dropped that would be acceptable to me.
I am sure all the companies want to get rid of the state businesses so they can pay ppl less than the cost for food and make more profit themselves but how does that help the Irish people themselves when all the newcomers are starving to death at 10 wellness?
In about a week a new player can have their work skill at 2.
At that point in the private sector you can make a profit from their work input and give them pay to keep them fed and as their skill increases they will get more pay and can afford q2 food when they reach skill 3.
After that they should be starting to think about gathering gold for housing, and in eIreland, with the level of pay compared to gold usually means that if they are smart, they leave eIreland for other countries that have a better currency to gold ratio.
Nobody in their right mind will try to get gold from work in eIreland to get themselves housing, even with governmental plans of tying them to into eIreland economy by contracts which keep them indebted to the government.
If nothing else, they will leave eIreland at the point that their Army strength has reached 5 to get into a war to get their 5 golds from the hero thing.
@Imp apparently your just not money smart. First you dont need gold to run for congress, you get gold for winning. Second work for a Q1 or Q2 company and buy the highest food you can and your wlelness will raise quickly. Also, I am suprised anyone would trust that fool leo with their money.