Facing our nation yet again is the same question: Do we want a strong currency or a weak currency? The economists scream weak, while the nationalists and real-life theorists demand a stronger worth. I have broken this article into three sections: Worker/Consumer, General Manager, and National Economic State. If one wishes, they could just review the section which pertains to them. I have thrown in a final section which I hope all, regardless of status in eUSA in relevance to this, would read.
Strong v. Weak and the Workers and Consumers
I have seen articles asking for a stronger currency, anywhere from 1 USD -> GOLD = 0.02 to even 0.033 (to be competitive with “Economically Strong” Spain; which, spoiler: Spain is quite instable when it comes to its economic markets). A weak currency is typically anywhere from a Currency to GOLD ratio of 0.01 to 0.013. In the eUSA, we have a steady figure of around 0.015 and 0.016 and have for some time. One could call us a “moderate” strength currency.
As a worker, what does a strong currency offer over a weaker one? You still get paid 18 USD at skill 4 for a Land job if the USD is worth 0.016 or 0.033. Your pay may not change, so why does it matter?
As a consumer, you still buy food for 1.82 USD from our own domestic companies which use domestic grain. It does not matter if the USD is worth 0.033 or 0.009; as long as stables (grain, food) are purchased through in-country domestic conditions prices will not change even if the currency does.
So, what is the harm of a strong currency? With a stronger currency, we will attract more foreign competition, and it would make our companies struggle to export since our currency would be worth so much compared to relative countries we ship to. Would this harm the eUSA consumer? Absolutely not, as foreign companies will begin to infiltrate and undercut our domestic companies; consumers will win with lower prices!
Then again, how would our consumers get money when the jobs they worked for cannot compete? For references: See Swede or Turkish grain/food markets. The former Chinese iron industry would be another example (for those which know of it, or if there are any records remaining).
Strong v. Weak and the General Manager
Our nation’s wealth and economic stability does not come from our consumerism or our national pride of hard work, as is the fact with real-life USA. Our economic strength comes from the General Managers which export to other countries.
Exporting companies, mostly in Grain, Wood, Food, Tickets, Housing, and Oil industries, are well managed and are very much efficiently ran. Our USD rate of 0.016 has allowed for our companies to export to fellow Atlantis nations and neutral nations very effectively. What does this mean for the economy? We are bringing foreign wealth, GOLD, and currency into our economy; thus allowing our economy to grow and their economy to be harmed – a side affect which cannot be avoided in the eRepublik economic system.
These companies not only have allowed our economy to grow but have also allowed for General Managers of less efficiency to operate domestically; allowing for basic price competition and for the entrepreneurial dream to be seen by even the most GOLD-stricken citizen wishing for a career as capitalist whiz kid. By promoting exports with a lower currency exchange rate, we have allowed rich and poor to operate and gain profits; all the while employing thousands of eUS citizens.
However, as the currency becomes worth more, it can buy more. As the 3rd largest trade surplus generator in the eWorld, and the first trade surplus generator in Atlantis, the eUSA is doing something right by keeping their currency much lower than other nations. This, as a side effect, has given us one problem: Iron and diamonds is the only product we do not have domestically and we must import.
With a weak currency, imports cost a lot more and, likewise, their finished goods (Weapons and Gifts) are also more expensive. Fortunate for the eUS, weapons prices are some of the cheapest in the eWorld and Gifts are often bought here by foreign organizations for re-selling in their own country. Then again, the eUSA does not have a weak currency, but a “moderate” one.
Strong v. Weak and the Economy
Quite frankly, the eUSA is one of the most gifted countries in the eWorld as we hold three high Raw Materials in 2+ regions each! This means our economic security is pretty well off to begin with – especially compared to nations whose wealth comes from one region and must defend it at all costs.
The eUS, equal to only one other country (Hint: In their local language, it is spelled “Brasil”), has a sort of economic security other nations do not have: They have resources and are able to export them to 4 or more nations in at least two continents of the eWorld. This adds to increased economic security, stability, and allows our General Managers the ability to expand as the markets seem to close one door, but open two more. Ultimately, our status as an exporting nation allows for both the worker and General Manager to prosper.
Not only this, but our trading has allowed us to bring in over 300 GOLD last month, compared to the previous 253 GOLD of the previous, in a trade surplus. This means that over 300 GOLD was taken from other nations via trade and was reentered into our economy; reinforcing it with wealth in the GOLD standard and increasing the perceived wealth of the eNation. Let’s compare this to our “economic competitor” Spain, which only brought in a mere 181 GOLD.*
So it seems to me and anyone with at least a High School Economics class education that our currency, at 0.016/0.015, or even 0.014, seem to be working to our benefit of projecting our goods internationally and thus growing the economy without causing a massive cost for weapons and gift companies.
Which is “Best” for the eNation?
That is for you, the voter, to decide. Many candidates have pledged that we need a stronger currency and to shut out the foreign competition. If you read the “Strong v. Weak and the Worker and Consumers” then you would know this is a terrible analogy.
On the table is the question: Do we want to be an importing country, and fairly competing with foreign companies (side affect of high currencies), or do we want to be an exporting country causing competition in foreign markets (side affect of low currencies)? Do we want to send our wealth overseas to other countries, or do we want to keep our wealth here while taking some from other nations? Do we want to employ only what is needed to be able to compete in our domestic markets, or do we want to be able to employ the masses as international demand rises with the eWorld’s population growth?
eNation, that is for you to decide.
To Do List:
Ask your congressman if they really are voting and voicing their opinions, or if they are just sitting there, enjoying that 5 GOLD and +20 EXP.
If you are interested in my lesser-detailed platform check out this link. If you agree, I would like it if my party gained in numbers to make a statement that we want change, and not the same old policies of yesteryear.
Hatemail is greatly accepted, as our Albanian Public Relations Office is now up and running. There are still employment opportunities, such as bicycle runner and print alignment.
-Jewitt, Chief Editor
*Information may be inaccurate, as eRepublik.com figures are missing and is a general estimation based on legislation, territories, operating companies with export licenses, and imported goods. Error should be assumed as (+75)/(-30) GOLD roughly.