[MoF] Economic Report

Day 1,222, 06:58 • Published in Ireland Ireland • by 5n4keyes

Hello eIreland,

For the last few days ive been working on the following article, much of it is what people have been discussing on our forums, in articles, and also shouts.

Now, it was ment to be something rather simple, infact the first article I drafted was only about 5 paragraphs long, but, it just didnt seam enough. Thus, welcome to the eIreland Economic Report March.

Note: Before we begin, We will be comparing 4 countries in this article, Ireland, Canada, USA, and China. Canada and USA because they boarder us and are regarded as our allies, and China, because a fair amount of food and weapons are imported from here.


The State Of The Economy

Ireland is one of the lowest producing countrys of the eWorld, we get alot less boosters compared to the rest of the world. By boosters we mean resourced, most peices of land have something, such as cattle, grain, these have a boost effect on the productivity of your work.

Other countrys in the eWorld are getting some major boosters, which means for these countrys, they produce alot more per day. If we take grain, this means people are able to produce alot more grain per day, so can in theory make alot more profit per day, this also means they can produce more to export.

Now, with Ireland, we had alot of countrys importing to Ireland, China was one of the huge importers of Food, as you will see later in this article, China is able to produce massive amounts of food, at a very low cost, and were able to sell in Ireland under the cost of Irish producers.


Shiney Things!

OK, in an ideal world, the economy would be very simple, assuming people didnt compete, didnt fight, and always worked at max productivity, obviously we know this isnt always true, but hey.

Productivity

The above shows you what each level of skill produces in each country, note that the friend bonus isnt applied as this is impossible to track, however, the larger a country, the more likely it is that a player will have friends they have invited, thus they will get a 10% or 20% boost.

From the above, regardless of what bonus your country gets, you produce 10% more than the level before, so effectively you are producing what should be 10% more money for the company you work. This stands to reason, that wages should in an ideal world, go up by 10% per skill level, so as an example, if Skill 1 god 10IEP, then Skill 2 should get 11IEP, Skill 3 12.1IEP, etc.

Is this the case?

Wages

In short, No.


The Problem

OK, by looking at the above you can easily see some of the problems Ireland faces, firstly by looking at productivity you can see that we arent as good at producing products as say, China.

The next problem, is that your biggest boosted product, defines the market. By this I mean that whatever product you are getting the most boost, is where usually the higher wages exist, this pushes the wages up in all other areas. So this should mean that any companys with a low booster run at a higher loss, in theory.

Wages, are a huge problem, we for some reason in Ireland, majorly over pay our lower skilled citizens, this in turn rises first the raw materials costs, and secondly the end product costs. Now, because of this, our companies then want to sell the end products, but because of the competitive nature of the market, prices get lower and lower, so that there products sell, which means less and less profit, or even a loss.

Imports, these were a major issue, tho we have temp resolved this for the moment with 99% tax, basically people would dump products on the market, mostly people from China for Food, as you can see from wages and productivity, they can produce alot of food, alot cheaper than Ireland, so can easily undercut our companies.

And finally, one of the biggest problems, is people like myself, who we shall refer to as 'Lazy GMs', these are people who dont employ anyone, or work for a friend and a friend works for them, basically employing nobody. Whilst ill admit, these people need to be shot (yep even me), there is virtually no cost in running a company, other than the 10g and 1000IEP setup costs. This means... Lazy GMs can majorly undercut the market because there are no costs involved in producing the products.


The Solution

In short, there is no solution. Because if every country followed what comes next, we will just go around in circles, and our market will be dead. Ultimatly there needs to be a major fix by the admins.

That being said, we can do some things to effectivly survive and hopefully ride out this wave.

First and most importantly, wages, wages need to be restructured, Skill 1 wages need to come down, and wages need to adopt the 10% more than the skill below wage structure. Wages are the most important thing to change, changing this and bringing down wages will mean that the end products can compete better on the market.

Product prices, products need to be sold correctly, remember everything now is based off of the price of Q5, if Q5 is 5IEP, then Q4 will be 4IEP, Q3 will be 3IEP, etc, if Q5 products are dropping in price, then other Q products need to drop also.

Finally, Respect, as a GM you control the market, you set the wages, you set the product prices, now is not a good time to have a wage war, or a product price war, so respect each other, respect the market.


Conclusion

The market can only be fixed by the GMs, its upto you guys to lower wages, and sort your companies out. We are going to drop import tax within the next week, to what level will be discussed with the new Dail members.

Realistically, Ireland needs better boosters, which isnt likely to happen any time soon, Thus we really either need to invade and hold a bunch of regions, or be invaded. Or, we need to have one heck of a baby boom, having each worker with 2 friends playing is a massive boost of 20% to productivity.

Ultimately, we need to sit and wait on Plato, and hope that at some stage he does something that fixes things, and tbh the only real fix would be to lower productivity, and remove boosters.



Edit: For those who want to see how there company stands in the eWorld, theres a nice little site that works some stuff out for you, Clicky