Join the new world

Some people have heard of me, some haven’t (well, nice for them 😁). Some will remember me for my avatars, the other for my work (well, few of them 😁). I have played a lot a year ago, mainly during the UNL times, when I was minister one month (I won’t tell which one 😛) and a successful company manager.

I began to 2 click a year ago (but still kept being in congress) so and I came back few weeks ago, to fight shad play again this wonderful game that is eRepublik. I am studying actuarial sciences (maths in insurance) at the UCL and working at AG Insurance (ex Fortis AG) in the same time.

Moreover I am currently the Ministry of Finance and congressman of this country, even if I will not speak as such but as a simple citizen.

Let’s move to the core of this news. The BCP has recently been PTOed (well, let’s say that someone did a mistake instead of calling it a PTO) and there are no more really communist party in this country. This is why I would like to make a comparison between Communism and Capitalism and therefore say why I think that we should move to a communist, or at least a communist-like economy, even if I would totally have disagreed about it one year ago.

My analysis is based on facts only and on the current eBelgium situation and my experience as a MoF.

Management


The main and obvious difference between Capitalism and Communism is the way to manage the companies. While in a Capitalist economy the companies are handled by private owners, in a communist economy, the state handle all the companies.

We have to remember that eRepublik is a game, and such it has to be funny. The economical part of the game, while used to be reserved to the rich people has recently be opened to masses with the lowering of the acquisition cost of a company.

Running a company might be funny but the accessibility also allows people that don’t know anything about finance to participate to the global economy and work with losses. This is really not uncommon.

The advantage of the Capitalism is so that it allows more fun for some individuals, but the disadvantage is that this might lead to some money loss for some people. Moreover a state management allow for a global view while a private management only has a limited personal view (sometimes there are association but it still limited).

The management from the state would be quite easy if it owned 1 version of every company, as there are no limitation of the amount of workers in a company.

A lot of information has also to be done to tell the citizens what’s going on and to not let them do silly things (like buying comp and such).

Production


This is the main reason that make me think that the capitalism is not suitable for Belgium nowadays. In a competitive economy, the offer and the demand are counterbalanced and the economy find an equilibrium (even if this one move) that fix prices.

However, with the current system, we are massively overproducing, which means that the price are going down all the time and that no equilibrium can be found. Which also means that the value of the BEF is going down all the time (but I will talk about it later).

The communism is a solution of this problem, because we can just stock the overproduction and keep it in reserves (or export even for an almost null price), and fix our own equilibrium, with the use of the stocks when we are encountering underproduction problems (not for a long time 😁) and the stock when we are overproducing. This would allow us to have fixed wages and to keep the value of the BEF and of the daily earned gold-equivalent salary for our citizens.

The disadvantage of the communism is that (almost) nobody will want to use the production booster, which is mainly used by the company manager nowadays, and which boost production. So the total production will be lower than in a capitalist economy. This is not really a problem as long as we are overproducing anyway.

Prices


(this is Katie Price, as we needed a hot girl to keep you awaken 😛)

As stated in the previous section, the prices are currently going down (the current status quo is only due to the war and the huge cost of the MM, but this cost us too much to remain for long). This is also due to the company manager powers.

Those guys can produce for almost no cost and thus sell for any price, they will make profit anyway. If I take my example, I can produce 200 Q1 food a day, while eating only 30 of them. Which means that I could sell 170 foods a day on the market (and that with only 8 companies, imagine if I had more 😉).

Which means that in a capitalist economy they will drag the price to the ground, whatever is done. The only solution to fight that is to put a very high VAT and a high income tax, but this can’t be done in a capitalist economy because it will only hurt the citizens. However in a communist economy this is not a problem at all, as the cost for taxes is 0.

Profits


The profits in a capitalist economy are drag to private, while in a communist economy they are drag to the state.

The advantages are obvious if we want to improve the global situation of the country, like the army for example. Moreover it is quite easy to change the profit and to raise taxes or such if we need more or less money.

Reversibility and transformation


A problem with the communism is that it is almost impossible to reverse. Once the production has been centralized, all the private investors will stop their industries and stop producing. Thus if we want to open the market again, it will be pretty hard.

The transformation cost is also pretty high if we don’t want to screw the company owner. We would have to buy back every single company on the market. As this would not be possible, the currently rich citizens would be very upset and that would cause some major problems. A solution could be to rent their companies, and to follow a Communist-like system , with the production in the hands of privates, but the wages and sales all made by the state (loan price). Which is imo the best way to manage the economy in the future (but it’s only my opinion).

Monetary Market


To non economist, this could look like a minor matter, but it is the best information about the inner wealth of a country.

Nowadays as some of you may know, Belgium is the country with the higher exchange rate of the whole eWorld. Which means that with equal wages, a Belgian gains a lot more. However this cost us 100 gold a week to keep it so. A communist economy would have the advantage that it allows very easily with a low cost to keep it constant and so to maintain the inner wealth of the Belgians.

Conclusion

I think that the capitalism is no more a possibility for the Belgian economy and that we have to find an alternative. Even with a lot of defaults, I think that the communism has the advantage to keep the inner wealth of the Belgian, and so to keep our potential of evolution while keeping our doors closed to importation from foreign countries (so they won’t stole our gold), and to private.