Addressing the Economy; What to do, eAmerica?
Jewitt
With the rising awareness of our economy now in the front pages of the highly subscribed newspapers, one could only assume that there is something "important" about this economy. Maybe its health really dictates our lives?
Buy Buy Buy!
I think Mr. Kramer said it best; Buy buy buy! It's always good to buy because it helps stimulate the economy and it is a theory that lets you purchase newer and better toys. Our economy is not in a major downturn like some want you to think since we are pulling trade surpluses and we are self-supportable.
Last month, we had a 1 GOLD -> USD ratio of 0.015 and we pulled the highest trade surplus of all other Atlantis nations and was ranked third in the entire eWorld. This month, we have been dethroned with Spain and Sweden taking the first and second position in Atlantis. Is it a coincidence that our dollar also rose to 0.018 this month as well?
People say we should have a higher-valued dollar because it will lower imports. Why has the price of diamonds risen since the beginning of last month if our dollar has grown in value? Capitalism has a flaw: Greed. Also, eRepublikan Capitalism has another flaw: Supply and demand does not directly apply as it would in-real life. That, however, is another article for another day.
Sell Sell Sell!
Our economy is different compared to other nations. Many of my rivals try to compare our nation to many others, which is unfair. Only four nations in the entire eWorld can be compared thoroughly because one must take into consideration our available resources. Out of those four, only one is truly free of occupation and thus, comparable, Brazil (The others: Russia, China, India).
The eUS must maintain its export economy and this is what I base my entire economic policy off of. We must put exporting goods as our primary goal. Already, with exception to food, domestics can compete fairly without fault against foreign companies. We need to lower the USD to, or around, 0.015 and keep it along that range to allow for multiple points.
1. Our wood, grain, oil, and other major industries can export profitably and easily.
2. Importing companies will turn less profit, making the eUS less favorable to "dump" their goods
3. We will bring foreign GOLD into our economy, raising the status of our citizens
4. Economic security.
By allowing and promoting more exporting, our companies are, unlike many Atlantis and PEACE nations, not dependent on one or two markets. If there is a recession in the eUSA, this does not mean many of our companies will fail because some can sell in Spain. Likewise, if Spain feels a depression the companies can then sell in UK, Sweden, or even at home. If the companies stay in business, the workers keep their jobs.
What does exporting mean to you?
The ABOA (eAmerican Business Owners Association) was developed by President Uncle Sam to aid in getting companies to export, but many are finding it hard to do so; especially with the higher USD currency worth. Many of our nation's economic minds, mine included, believe in a lower USD to achieve optimum export ability. But the problem persists: Do we put the business owners first or the consumers?
This is not a "worker's rights" issue, because unlike real-life the more markets the better for the worker where work environment is not a factor. The consumer wins in both an export-oriented and an import-oriented market here in eRepublik because either way prices stay in check. The newer companies compete domestically while the more efficient companies export abroad.
The problem with this is that if the USD rises in value, like it has now, the more efficient companies must return state-side and will put out of business the poorer domestic-only companies. Before long, these domestic-based companies cry to Congress, say that the markets are being flooded by too many taxes or blame it on someone else than themselves. Good examples are the current wood and grain industries.
Many complained in the ABOA and Congress that favoring exports would mean that imports would increase their prices. Why, then, were diamonds at an all-time low in January when our dollar was at 0.015? Why is iron at a current low right now and has been for months? It makes sense to say it, but when one actually looks at the markets all statements are discredited.
eAmerica, we have to promote exports, for economic prosperity and security. Still, though, the decision is for the person voting in representatives in Congress: Are you voting in someone that is for eAmerican business, or against it?
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To Do List:
Read up on this interview. It is kind of good, if I do say so myself. Special thanks to changewillcome (AAP) for the exclusive.
Go out and vote on the 5th. I will not say who to vote for, but I will say that you would not be in the wrong to vote for a certain Jew.
There's been some tough talk about Atlantis lately, make sure you are informed. Read up on all the articles, and not just that from one side. An informed voter is a smart voter.
-Jewitt, Chief Editor
Other Reads:
Article: "Strong USD or a Weak One?"
Article: "International: Exports and Imports for February"
Article: "Where does the eUS Stand, Concerning Atlantis Economies
Comments
Pertamax prevented
"Mr. Kramer said it best; Buy buy buy! It's always good to buy because it helps stimulate the economy"
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..Unless you are the United States Congress. Then its all about creating State Run Enterprises and thus causing reduced demand in the marketplace.
Once again, another insightful article from this stellar candidate. I don't know about you, but I'm voting Jew.
Case and Point: http://eusforum.com/index.php/topic,1158.0.html
>Aren Perry "Approve for a Q4 weapons company to be run by marines/others at low pay rates to provide weapons for the military."
great article jewitt, I know who I am voting for on the 5th ifI want to have a good paying job.
Alby: Could you not hijack my article with some congressional babble? I am not talking about state-ran anything, nor about Congress. I have more appropriate articles for that and I would appreciate it if you would keep commentary to topic-only discussion, please thanks?
Jewitt "We must put exporting goods as our primary goal"
Oh really? Okay, please send me 800 Gold so I can obtain export
licenses in every nation to fulfill this goal. Its only prudent that
the Government pay for export licenses for all businesses if they are going to jimmy rig the economy to favor exports and hurt domestic trade.
Well said, Jewitt. Good luck Thursday.
Jewitt? Hijack? No, its called Constructive Criticism. Something that a Presidential Candidate should be able to address and/or defend their stance on. I mean hell, you can't expect all 11,000 citizens to agree with you. And you should be able to defend your export driven goals while we watch bread prices rise at the super market. Long gone are the days of $0.50/cent Q1 food.
Nice article Jewitt
Alby, quite the hostile little critic aren't we? I never said we should subsidize (something yourself and I are against) export licenses, but I guess I should say "I am against subsidization" else everyone will assume I am for it.
Those 0.50 cent days are gone because of productivity formulas and other eRepublik function things. I only said "Hijacking" because you are bringing up a topic which has almost nothing to do with my article. Nationalization of domestic weapons companies applies to exporting how? I am more than glad to debate these issues, but in the appropriate locations.
As Presidential candidate, I will say, I am for the nationalization of a limited "Elite-only" weapons company because the QMG already does not always buy eAmerican weapons and many of the Marines would be more than willing to work in such a facility. As to the other company options, I am quite skeptical but realize that as President I would have only 1/51 of a vote in the matter and Congress is the true decision maker.
@Alby, your "constructive criticism" isnt on topic though. Then it becomes "hijacking"
"Many of our nation's economic minds, mine included, believe in a lower USD to achieve optimum export ability. But the problem persists: Do we put the business owners first or the consumers?"
--Jewitt
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Jewitt@ I know this concept is hard to grasp when you feel like you should "do" something by being in a Presidential Economic Commission thinking up stuff to do. But in the real world, the best thing the Government can do is (NOTHING)..
Government should not interfere in the free market. The ebbs and flows of free trade will address any inefficiencies that exist. There will "ALWAYS" be winners and losers. And the Govt should never dictate that it is going to favor one side or the other for political brownie points. If the US Dollar rises in value, than praise the citizens for their increased purchasing power. If the dollar falls in value, praise the businesses who can now export for big profits..
This is the biggest problem in eUSA. Government always sticking their nose into the private sector.
http://tinyurl.com/cotcbw
In this present crisis, government is not the solution to our problem; government is the problem.
-Reagan
I think wahooBob said it best, Alby: "your 'constructive criticism' isnt on topic though. Then it becomes 'hijacking'"
I have no problem with criticisms, as I have proven and shown multiple times and I am more than willing to talk about alternative opinions (which is a stable in my running for President, how I want to have a diverse cabinet and advisement counsel) but please keep your "criticisms" on-topic and stop hunting around. It really is not appreciated when you just try to find something to argue about.
Jewitt@ If you are going to post an article praising the glories of Exporting America to the world and weakening the dollar in the process, I seriously doubt that speaking out against such action is without merit.. Although the people, struggling to afford a meal, can be the judge of that on judgment day, March 5th. 🙂
Struggling for a meal? Who is struggling to eat? I do not hear anyone claiming to be hungry or unable to afford their Q1 or better food? When the dollar was at 0.015, Q1 food reached 1.32 USD. It is much higher now. RL economics do not apply 100% in eRepublik. Period.
Jewitt@ We'll thanks to the strong dollar, they aren't struggling. Once people like you get into office and devalue the dollar, you can bet that food prices will rise again. It was just a few weeks ago when the dollar was 0.015/Gold and Food was $1.70+. Now its $1.10 and the USD is 0.018/Gold.
RL economics do not apply 100% in eRepublik. Period.
Could not agree more. I find it really funny when people bring in complex RW evidence to support economic positions in erep when the erep economy is very tangentially realted to the RW economy.
Marq, you could not be so close to the truth. Alby, food prices are not dictated by the USD->GOLD ratio in eRep because all stages of production for food are based domestically and do not have foreign factors aside from competition, which grain and food will remain at steady worth if the USD is worth 0.015 or 0.035. "Strong v. Weak Dollar," an article by me, looks into this and it had past information on previous markets supporting it.
You just said that they were struggling now, and now you are saying they are not struggling but were before, or that they will when I push for a weaker dollar. Which is it? When the dollar was at 0.015 food was at 1.32, which was thought to be very low, especially since in December and November, when the dollar was 0.017, it was around 2.5 USD per Q1. The value of the currency has NO AFFECT on the price of food unless foreign competition becomes a factor.
"RL economics do not apply 100% in eRepublik. Period."
Guess that means when I step a business and sell widgets for less than the competition and they go bankrupt because nobody bought their widgets, I'll have to assume its a fantasy. Because although it happens in RL, it can't happen in eR. Or if I go and buy up all the USDs on the market and drive the price higher, companies won't go belly up due to the forced deflation in the economy? Yeah, thats another fantasy..
Gezz.. What could I have been thinking.. Back to Harvard Business School for my reeducation in market economies.
Jewitt@
You forgot something in your assumption "Alby, food prices are not dictated by the USD->GOLD ratio"...
You forgot that Workers must be paid wages. And if the USD rises in value, dollars become harder to obtain. As a result fewer dollars circulate in the economy, thus impacting all prices of widgets sold.
Translation, USD->Gold ratios do impact prices.
Pretty much the only thing that really applies here is supply and demand and cheapest product wins.
To go through some major aspects that are different in erep;
a. There is a grand total of... 12 industries!, only a few of which are constantly being bought.
b. Free money appears when you work hard and train hard. Wheee!
c. Loans? Forgetaboutit, they are usually too risky and thus tend to be pretty rare.
d. Holy hotdogs, its true, with the right resources you can buy foreign resources insanely easily.
If you want more I can give you them
Alby...this is not a forum for discussion; possibly we could take this to PM? I have already argued how wages, production, and markets of domestic goods, independent of foreign competition, do not change based on USD->GOLD ratio.
Why must you always explain the most extreme? I said that not all of RL economics applies...I did not say that RL economics does not apply. It's foolish for you to even assume I would infer such a thing. You seem to be going after this attempt to discredit me like a holy war (though others to post seem to be enjoying my article), I am sure your political affiliation has something to do with it?
Exports alone is not our economy. Likewise, a 'weak' currency doesn't ensure prosperity or exports.
I don't see any data here about our actual overall economy: # of workers, avg pay, activity level, dropout rate, # of businesses (failed & active), GDP, GDP trend, etc. That sort of data would be helpful to determine whether the economy is really doing OK or not.
Plus, I don't know that exporting raw materials is the most prosperous route for any economy. The term 'banana republic' reminds us of that.
@Alby
Here in eRep...the "real world" doesn't apply.
Ssomo: See my previous articles, they are chalk-full of market data and trends. This was simply a commentary article. Also, in eRepublik, exporting of raw materials is nearly twice as more profitable as exporting finished goods. Anyone can produce finished goods, only a few nations can export certain raw materials. The eUS has wood and oil, both raw materials that are used en masse and, from last month (and shown in a previous article of mine when comparing nations), were major players in our economic trade surplus.
"supply and demand and cheapest product wins."
-Marquis
Agreed... And the Government should keep out of the business world of this process. If Exports are good, let them be good on their own merit. Not because the Govt rig'd the economy to make it happen.
Planners never know when to stop. They just keep on trying to "do" something to justify their purpose. Just let the free market work.
Agreed... And the Government should keep out of the business world of this process. If Exports are good, let them be good on their own merit. Not because the Govt rig'd the economy to make it happen.
Planners never know when to stop. They just keep on trying to "do" something to justify their purpose. Just let the free market work.
Now see the big issue is... How do you know this? Knowledge from irl?
Why must you always explain the most extreme?
-Jewitt
Just in case you become President, you should be properly vetted in the forum of public opinion. 🙂
Hi Jewitt. Sorry, I went back to view three pages of columns & I only see import/export and dollar/gold articles.
I mean that's fine, it's an important piece of the economic puzzle & hats off to you for focusing on it. But the domestic economy is where most eAmericans spend all their time & money, and focusing on those external aspects doesn't measure the economy of the people whose votes you like to win.
How do you know this? Knowledge from irl?
-Marquis
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Not from RL, from Common Sense. What is a Free Market? It is the free transaction between a Buyer and Seller to agree on a price at which goods and services will be exchanged. To thwart such a transaction would be for the Government to artificially change the conditions under which a Buyer and Seller agree.. Some of those ways might be to change the value of the money being used or tweek the supply of goods being sold.
If the government would just keep out of the economy and let the economy find its own rhythm, the nation would be better off. And stronger because of it. But when the government dictates artificial demands, it destroys the free market and creates a directed economy based on idealistic beliefs set forth by those in Government. A recipe for disaster.
Well again, how do you know that in erep, not regulating the market will be better than the government regulating it.
Using an erepublik example (albeit a somewhat aged one), back in its glory days (before all the /v/akis left at the start of V1) /v/akistan was a firmly socialist nation, but it also had the best economy of the eworld, including the first successful hospital company (which you have to realize at the time was a huge deal, since there were way less people and everyone had much lower skill, so the economy would have to be especially robust be able to support workers churning out hospitals and not collapse the system).
longest article i have ever read but its a good article
First issue. We overpay our workers
Observe the wages menu of the CPUSA grain company (we have 2 companies in 4 days of operation) (2 in 2 days ffs)
http://img21.imageshack.us/img21/2473/kolkhoz.jpg