Join the new world

I feel your concerns and other citizens/GMs concerns are falling on deaf ears im afraid 🙁

Australia has entered a recession period due to the fact that the Senate of Australia decided to raise taxes and lower tariff barriers all to get more revenue. They have taken the path of irresponsibility and have decided not to cut the budget, but instead to plunge us into a recession.

Can you list the weapons companies that have shut down?

During the war many people were complaining about the high cost of weapons and shortages of products.

I recession is defined as a shrinking economy and is usually accompanied my high unemployment. Our GDP (for what it is worth) is up 10% from last month and we may make our national goal this year.

The new taxes have only been in effect for 3 days. We need to give it a chance. There have been many comments about our high prices and labour costs. The idea is that the new tax policy will solve this issue and also allow us to export competitively.

This is a simple case of supply and demand. Iron is used for weapons and weapons are used for war, but when wars are few and far between, weapons aren't sold. When weapons aren't sold, companies have to drop prices in an attempt to cover their costs which, in turn, forces them to cut wages to be able to continue turning some sort of profit.

Plain and simple, war drives the economy here in eRepublik.

&quot😉uring the war many people were complaining about the high cost of weapons and shortages of products."

exactly and how is cutting out australian companies from our own market going to help this?

prices in the eRepublik have been crashing.. iron is down to 4.5 gold/1000 q1 iron units from around 8 gold a month ago

I've noticed this. Republican Guns is feelin it.

Where's my company 😛
Always good to get a little publicity.
http://www.erepublik.com/en/company/eaustralia-s-weapons-supplier-219517" target="_blank">http://www.erepublik.com/en/company/eaus[..]19517

The list that was provided is a list of companies selling product without employees. There is no way to determine if they have gone out of business in the past 3 days due to the new tax laws.

I sold my iron company in eSpain last month because Q3 iron dropped from 0.084 ESP to 0.054. I stopped weapons production for a similar reason.

There are simply too many companies chasing too few consumers. When a Q1 closes down, the owner tries to sell it for 22 - 25 gold or so. When a new player saves up his first 20 gold, he starts a new company instead of buying an old company for 25 gold. The cycle continues.

There is a world wide recession being caused by Lana - everyone is buying Gold to Train, and so can't afford anything else, not even Food.

i agree, lana is to blame.

"The list that was provided is a list of companies selling product without employees. There is no way to determine if they have gone out of business in the past 3 days due to the new tax laws."

True, I only realy check my market, so only know for sure that one was recent, doesn't look good though...

I get what your saying about the oversupply, thing is, if a war came I recon we would go from ovesupply to undersupply in less then a week.

"There is a world wide recession being caused by Lana - everyone is buying Gold to Train, and so can't afford anything else, not even Food."

Thats a very good point, didn't think of that...

Yes we are.. Due to an incompetent Government.. it truely is sad 🙁

The text of an ad pointing to this article reads:

Our Opressive Government has Ruined the Economy!
Our manipulating Government has NO Clue!Lowering Importers Tax+Raising ours!They have crushed our marketplace+labor market!+Now Pushing the AUD Lower!

I'd just like to say although market prices have lowered, the AUD buy price has notably risen in the last 2 days. My newspaper has recorded this: http://www.erepublik.com/en/article/resources-for-day-830-1226272/1/20" target="_blank">http://www.erepublik.com/en/article/reso[..]1/20

More regular prices for the last 2 days - http://ereptools.net/graph/currency/History/AUD" target="_blank">http://ereptools.net/graph/currency/Hist[..]y/AUD

Anyway, good article - has inspired discussion

I wonder if there is a bit of a panic reaction going on with price due to the lowering of the import tax? There still isn't any evidence of product dumping or of a large number of importers. Possibly people are afraid of a price drop and have made it self-fulling?

Absolutely ridiculous. People keep coming out with these articles that aren't worth the electricity needed to type them. The government lowering our import taxes can only help manufacturors. No longer will our weapons makers struggle to buy Iron at prices that allow for a decent profit. Now they can buy their RMs cheaper and then sell their weapons cheaper to the consumer.

The eAustralian economy has been crashing ever since we got WA back and the global economy has been getting screwed ever since Lana joined the game. Any GM who lays the blame of our market recession on our Government are either too new to understand the game or too dumb. The GMs who know what they are talking about have been watching our market crash for months now, these new taxes have made very little impact since the only came into effect in THE LAST 3 DAYS.

I'm sorry, but people dont seem to understand that HIGH WAGES AND LOW PRICES will lead to a recession. Also LOW PRICES AND HIGH WAGES can lead to a recession.

The two scenarios that we don't have to worry about is HIGH PRICES AND HIGH WAGES and LOW PRICES AND LOW WAGES. These two scenarios are actually good for a country. Right now we are seeing our ridiculously high wages lower(a good thing) and we are seeing our prices for goods drop aswell. Low wages + low prices means = good

Import taxes have had very little impact. Most of what we are experiencing is due to a global glut of almost everything. I think Lana is mostly to blame but war activity is also down.

Income taxed will start to curb consumer demand and hopefully this can be reduced again soon. Th reason income taxes had to be raised was to pay for the rapidly increasing military spending, the country needed more tax to avoid going bankrupt.

Omg Spaz hit it on the head.

Dear Y'all.

Stop Complaining, there are other countries you can go too, eAustralia is not ruled by a Tyrannic Government; Yet.

Not until EV gets in anyway 😉

Well,
If I might add, there were about 7 people working with me about a week ago but then suddenly 4 left then 1 later on.
I'm not sure if its because they quit or if they had to be fired because on the low income that our company was making.

When ever someone says oppressive government/evil government that rules Australia with an iron grip and is mean and all that bad stuff. I really do have to laugh!


LOLOLOLOLOLOLOLOLOL
hahhahha

Frymonmon, your point is made but... didn't you write an article encouraging an increase in the tax rate?!

I believe that eAustralia can do a lot better.

I have recently travelled around the eWorld visiting over 40 different countries, and lived and worked in exactly 40. Throughout these travels, I have learnt many things that could better the eAustralian economy. Currently, it would seem, that too many people own companies. This creates more competition meaning that companies have less money to pay employees. In most countries I travelled to, even the poorer ones, most products were cheaper to buy and employees were paid higher. For example, the last country I visited was eNorway; I got paid 16 Norwegian krone a day working in a lower skilled workplace than I do here in Australia and I only get paid 10 dollars a day here. I think that this article has valuable merit. EAustralia is in desparate need of a communist government.

And if what I said wasn't enough proof, I have just been fired and I work in the raw materials industry, specifically a company that sells grain, an industry that always has demand. No one has enough money.

I blame Lana.

"The text of an ad pointing to this article reads"
I didn't write that ad, I have no money for ads at the moment.

I am not blaming the taxes, I am saying that they will make things worse! and I have no problem with low iron import taxes, I just fail to see any benefit of opening our market up to lower prices, when prices are already too low...

Effectively by reducing import taxes you increase the oversupply further!

you are like..errr...2 months late?