ECONOMY - CAN WE IMPROVE IT?
Crocky
Hello again my friends,
I promised you last time that I will try to analyze situations in different fields in order to find the best solutions for our mutual future. Today, I share with you some of my observations and maybe together we'll find ways of improvement.
Although, eNorway has only 790 players at this moment, there are more than 100 companies.
A short calculation reveal the fact that, in order to reach maximum productivity in all those companies, we need at least 200-300 players more. You'll say that, many of these companies don't have any activity and this is true, but let's not forget that usually, there aren't more than 300 players who are actually playing this game at least 4-5 days a week, so the shortage of workers is deeply.
Let's not forget that at the last 3 elections, voters were under 200 and that means, the real number of good players is around that figures.
Our taxation is based especially on INCOME TAXES which are around 15% in industries that really work.
The problems here are these: Let's say 200 players are working everyday in these fields with an average wage of 35-40 NOK. That means that the collected taxes in a day are at about 5-6 NOK per player, which is also mean that in a day eNorway budget gather from income taxes 1000-1200 NOK or 12 -14 GOLD. In a month, the sum gathered is approximately 350 GOLD.
ECONOMY PAGE
The other component of our taxation is VAT which also varies but let's say that is at around 5%.
200 players are usually buying everyday one bread and some weapons or gifts. Let's take for example q3 bread that costs at around 8 NOK and the VAT for it of 3% that mean a tax that goes to our budget of 0.24 NOK/bread and 48 NOK/200 players everyday. This way, eNorway gathers around 16 GOLD/month from bread.
If we calculate from the average wage of 35-40 NOK, the cost of daily bread, the sum that remains is at about 27-32 NOK/day for weapons and gifts that have a VAT of 5%. If a player spends everyday his earnings that means that the VAT he pays for weapons and gifts varies within the range of 1.35-1.6 NOK/day, or 40.5-48 NOK/month. For 200 players, the amount varies between 100 GOLD and 110 GOLD, that if every player pays all his earned money.
I am aware that players who are working in land support a higher INCOME TAX, that isn't quite correct considering the fact that wages are even smaller than in manufacturing and their incomes are even more discriminating, and my calculations might not be so accurate, but we definitely must do something to correct that issue.
My proposal is to lower a bit income taxes, which will raise a bit wages and to raise VAT with 2 points. This way players will spend more money on products and stimulate requests for products and company owners will afford to keep their companies at maximum productivity.
eNorway must also buy 2 companies, one in raw materials and one in manufacturing and to advertise jobs with skills between 0 and 0.99 for new players.
I expect you to post here your opinions about this matter and who knows, maybe we can develop a better formula.
Thanks all for reading,
Crocky
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Comments
I completely agree with everything you just said.
I think it's a reasonable proposal
I dunno much about economy in this game(borring)
But I wish you best of luck! 🙂
I'm totally sympathetic to the problem that you point at: the question is whether it's possible to change the government's attitude. Remember that the fundamental principle underlying this government is that the state must provide for its citizens, and the state knows best what the citizens need. So for example the government made the economically irrational decision to subsidize the building of a Q5 hospital, even though it would be cheaper to buy one -- their reasoning was "we can just get the money back from taxes". And then they created a punitive tax for house compared to hospital, in the hopes of making working for the state hospital company more attractive (they failed to do the math to see if that would work). The government seems to think that it creates wealth, rather than destroying it.
One objection to your math -- the average wage is not 35-40 Nok, it's 18. It would be useful if the government would be more open about whatever national economic facts it knows, e.g. actual tax revenues, actual expenses. But as the government supporters repeatedly point out, those citizens who vote are apparently willing to put up with this rather paternalistic regime which is slowly bleeding eNorge dry.
Johan Galt,
As of yet it seems that the building of a hospital has been slightly cheaper than buying one. We are ¾ of the way through with a hospital, so it is not 100% a sure thing. I fully support buying a hospital if it turns out to be a cheaper route, but it would be foolish to stop the hospital company midway through 1 hospital.
I would support making the budget public to the citizens. I am all for openness in the government. Another idea that was proposed earlier this month is to make how each congress member is voting in the forums visible to the public, but this did not succeed. It would be great if more citizens showed concern for what is going on in the government. Without more citizens’ input, it is hard for the government to know what the citizens want. But decisions must be made regardless.
Crocky,
in regards to lowering taxes, I (and I believe TeK) would support such a motion. This should definitely be discussed in congress, and hopefully we can get more citizens’ input on this matter. Also, in one day we had a 20% increase in population, where it jumped from a steady pace at 630, to 760 and still growing. It is suspected that this is a PTO attempt, so it is not certain whether or not we can account for these players in calculations at this time.
The state should definitely take into consideration a possible TO but that not means that every citizen can't tell his own opinion regarding economy. My article has at its base only some calculations, it is not something that I really want to propose in congress unless I don't think it might be a better solution than what is running right now. That is why I ask you to comment here your visions. I am not an enemy of eNorway and the only thing I did was to ask everyone's opinion before discussing it in congress. I witnessed 2 successful TO against eNorway and the last one was the reason I left eNorway but I always fought against eHungary, military and through my newspaper especially for that fact. I reach MMM because I wrote mainly about eNorway's past but aslo future and don't intend to stop now. If you see something wrong in it, just post what.
Eris,
Alright, you would support openness in government -- good. But then, your days may be numbered. The level of governmental covertness and behind-doorsness in e-Norge is staggering by the standards of a mildly corrupt real banana republic government, and utterly incomprehensible by the standards of r-Norge.
I am not the most economically inclined, but I do see that compared to many other countries, our NOK is weak, our citizens are underpayed, and the market is pricey. TeK's party program supports a lower VAT. I would support making our income and budget public, so that it can be properly evaluated. I am still trying to learn.
Johan Galt, I would love to hear more suggestions from you about how you think the government could be more open and less corrupt.
Johan Galt: A great deal of accusations, but without anything substantial, it is difficult to discuss with you...
Eris,
Here is one small and concrete suggestion. Every month, there should be a substantial public accounting of government revenues and expenditures, posted in a stable place in the forum. By "substantial" I mean enough detail that we would know how much the government has transferred to you which you transferred to the hospital firm; how much has the government transferred to Heimevaernet for what purpose; and the like. If you aren't interested in running eNorge like a real government, it's within your power to do things however you want. Otherwise, I suggest that you start to trade in the blind trust approach to government where citizens are simply supposed to believe that whatever is happening is "for their own good", and adopt a "here are the facts" approach where citizens can see -- and yes, maybe even discuss -- the details.
Johan Galt; there is exactly that kind of information in the national security forum. It is not common in Norway to make all that information publicly on the run, as it is strategically sensitive.
As long as all the congressmembers are able to oversee the government, I do not think your accusations of rampant corruption etc are valid.
However, I do agree that more information should be made available publicly - but that's more a manpower question - lot's of people don't care to contribute with their time.
If you want such a position, it is simply to request it and it will be accomodated.
http://www.erepublik.no/viewtopic.php?f=46&t=1817&start=40" target="_blank">http://www.erepublik.no/viewtopic.php?f=[..]rt=40
Evleos,
Why do you find slander to be necessary? You can clearly see that I did not accuse anyone of rampant corruption. This kind of juvenile conduct is exactly the reason why I find it pointless to engage you people in political discussions. Pay attention to Eris' more civil conduct.
"The level of governmental covertness and behind-doorsness in e-Norge is staggering by the standards of a mildly corrupt real banana republic government"
You seem to accuse the government for being more corrupt than a banana republic, and then you claim that you have done nothing of the sort... and nothing more...
Yes, please discuss the case.
Evleos,
There's no question that the eNorge regime conducts business in secret, and that such secrecy does not exist in the real world except in corrupt regimes -- the point of openness in government is to independently and objectively provide the evidence of non-corruption so that there is no conjecturing about what the government is really doing. There is a difference between saying "This government should do what honest governments do" and saying "Because this government doesn't do what honest governments should do, it is therefore corrupt". Do I need to go into more detail to explain the distinction to you?
Ok, so we are back to you claiming that eNorway is worse than "mildly corrupt real banana republic government".
What the government is doing is available to congress and dictated by congress. Join congress before you start swirling words around.
Johan Galt:
There is indeed a public thread where all transactions are recorded. I did not realise that we have two threads where we track this, and I only posted in the private congress one. I have copied all of my transactions into the public one. The budget, however, still remains private. http://www.erepublik.no/viewtopic.php?f=29&t=1816&start=40&st=0&sk=t&sd=a" target="_blank">http://www.erepublik.no/viewtopic.php?f=[..];sd=a