Petz Presents: MATH EVEN JACOBI CAN UNDERSTAND!!!!!!
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by Petz
Recently, Jacobi has been misleading the public to believe that his tax reform ideas would benefit eCanadians by bringing prices down for products while not impacting citizen's wages or their bottom line. Well my friends, those tax reform ideas will not make your life better. In fact, more than likely, you will either find yourself in the same economic position or find yourself worse off. Let's examine this without throwing multiple percentages and numbers at you. In reality a few simple numbers are all you need.
If today you make 5 CAD and your cost of living (food and other purchases) total 4.5 CAD, you end up fed, happy and with an extra 0.5 CAD in your account at the end of the day. When these ill planned tax changes come, your daily costs may drop 10%, meaning your cost of living each day would be 4.05 CAD. In Jacobi's technocolor world, owners will stand still and keep wages the same but in reality, owners want to make a profit and will cut wages. If owners cut wages at the same 10% level as the product price drop, your wage would now be 4.5 CAD.
Simple math shows us that 4.5 - 4.05 is 0.45 CAD....meaning that each day you would be able to save less money overall. As prices for products go down, wages go down. This is a fact. Deflation builds momentum and recessions occur as the economy does not grow but ends up shrinking.
Don't be fooled by their articles that bombard you with tonnes of numerical stats that try to paint a pretty picture. If Jacobi and any others that support these tax change ideas want to bring them into play, at least demand that they admit that a drop in product prices will cause a drop in company revenues which in turn will cause wages to decrease. Jacobi, admit that wages will go down and join us in reality. The time as come to stop pretending...we don't live in a technocolor fantasy world!!!!!
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But with 0.45 CAD I can then buy just as much as with 0.5 CAD due to lowered prices. The shiny number on your bank account is not everything.
Not voted.
Actually, with more things coming in v2 and with products changing and more events/things for your characters to do or experience, the shiny number on your bank account will be more important than ever. So it may not be everything but in erepublik, it pretty much is everything.
Yes, and you may or may not possibly have to maybe spend $1,000,000 everyday on Q1 food at some point in the potential future. Maybe.
augustus Baldwin if you dont have anything of value to add to a discussion do not speak.
Petz is making a more then valid point here.
Duiveltje
Petz...making valid points?
inconceivable!
Jacob(i) and his robe of many colours.
Hey guys, I just got the great e-mail in my inbox! Apparently an eRelative of mine in eTurkey has died and left me 500 gold! All I have to do is send them 25 gold in order for them to process some papers with the government and then I'll be rich and wont have to worry about the economy anymore!!!!
WOOHOO!!!!
P. Magee
Don't be fooled by confusing things like facts or data, folks!
It's not that I'm 100% behind Jacobi's plan or even his argument, but this is significantly weaker. eRep economics is simple compared with real world economics, but it's not _this_ simple.
As long as people remember that Petz only cares about his profits and is doing what any rational business owner would do I'm fine with his hysterical rants.
Petz is not a disinterested observer, he is a person who makes his money by taking your production and giving you less than its worth. While we cannot fault him for fighting against something that would limit his ability to fleece you, we also cannot ignore his motivation is indeed to take as much money as he can.
Also, the import tax do not actually allow for foreigners to effectively operate in Canada. They mostly establish a cap over which company owners cannot overcharge Canadians in present market (since they are already over charging and over profiting...perhaps to feed their Lana fix?)
ahahahahhaha perhaps you should ask james wiens why I spent my profits buying gifts to help my employees. Based on your logic, I should have thousands of gold reserves, well sorry to inform you that when our economy tanks I pump in those profits to the companies to keep paying wages.
As for not being a disinterested owner, I take this stance for all business operators and for their employees. Be honest with them and tell them that your plans will lower wages and shut industries down. My playing character is far enough advanced that if I shut down my companies and just worked, I would have tonnes of gold, more than operating companies.
As I stated, most if not all owners want to make a profit. We don't hide behind that fact. At least we are being honest about that. Your motives on the other hand seem to point elsewhere.
Yes, as someone with 200 gold invested in food reducing the import tax was all part of my sinister plan.
You give gifts to your employees? So what? You think that means you care because you found an alternate (and for you cheaper) way to incentivize your employees.
Your aggreived piety is hilarious, as you sit on a fortune most Canadians will never have. I wouldn't normally call you on your BS but Id rather not mistakenly give them the impression you care about them. Admit that you're protecting your own ass with your rants, and I'll admit my tax recommendation work 😉
I ran this economy for six months, and directed tax changes that grew our economy. I dare you to find someone more qualified than me.
lol you ran nothing....the only reason the economic grew was because Dean proposed changes that worked at that moment in time. The weapons and gift industries were growing because we were involved in daily wars and there was a need for those items. During that time, the food and housing industries were nearly dead because citizens used the healing powers of hospitals. Stop claiming that you were responsible for growth because you weren't.
What you can claim is killing all the iron jobs and for trying to pull the same with the grain industry.
Lmao, like I'm goning to trust a person with huge sums of gold and like 20 companies to look out for my best interests. Cheap, affordable Polish housing, here I come! :3
Maybe you weren't paying attention, Jacobi, but if you read and understood Alias Vision's article, you would recognise that as a function of labour input, an employee in Canada generates as much or even more purchasing power as any other resident in the eWorld. Petz isn't ripping people off, and that you would accuse him of such tends to put the hysterical rants more in your corner than his.
Try to keep up, Jacobi, the talking point of the greedy businessman soaking the poor working stiff is dead. Canadian businesses pay a high wage for labour, and charge a fair price for their goods. What you don't seem to get, Jacobi, is that it's our highly valued currency that makes foreign goods cheaper relative to ours as a function of gold. And that's not going to be solved with lowering import taxes, all that will do is kill jobs and destroy wealth.
Cheers,
AR1ARX
Petz is an epic fail, and anyone who takes him seriously is a fool. Nuff said. Lol
I checked his math and the 10% figure on the IRC, he's right.
Jacobi the only way you defend this is saying that he wants the money for himself, when the math he has done is completely correct. You cannot deny math unless you feel that his math is wrong?
I am happy that Octavian has said I am a failure, that means I must be doing something right lol Now we have Octofail and Octojacobi!!!! Yippi!!!!
The math he does is oversimplified in its extreme. It takes wages and prices and places them in a vacuum. Wages and prices do not live in a vacuum and in that their interconnected its more to do with economic viability than profit %. Most owners are rational and pay wages based on what the market is willing to pay, rather than on their profit incentive (the concept of keeping track of ones profit % on a continual basis is silly at best and a time waste at worst).
Petz' math is right. Congratulations, he can do simple multiplication. It has absolutely no basis in reality and passing it off as if it does is deceptive.
1+1=2 Look, my math is right too!
To simplify: I am advocating a system in which there are rational and self-interested actors. Rational businessmen and self-interested employees.
Petz is advocating a system from a reality which resembles what the erepublik economy would like like in a fun house mirror.
I can haz into fun house mirrorz?
"Wages and prices do not live in a vacuum and in that their interconnected its more to do with economic viability than profit %. Most owners are rational and pay wages based on what the market is willing to pay, rather than on their profit incentive"
Lol!!! This is exactly why companies start up and are broke a few weeks later. It is idiot owners that over pay and run up wages who are unable to run a company that is able to survive tough times. In order to run a company properly you need to look at your bottom line. If you are losing money, you need to cut costs and if it means cutting wages you do that. You don't just post wages that are too high for your company to manage. Those owners that simple follow the market are not just guilty of poor management but rather they are also guilty of stupidity.
eRep Economists:
"We confused the confound interest ratio proportionate. Don't forget to buy derivatives!"