eBelgian Goals on Economics: A Keynesian Model
Day 859, 14:36
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Published in Belgium 
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by
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by Reaussou
Issue 3
On eBelgian economic prosperity through Keynesian economics.
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Belgium is a low resource area which do not give us any comparative advantages. eBelgian economic strength is attributed to low wages. When the wages rise through minimum wage proposals, the prices will rise. This way we’ll end up in the same spiral where we’ll have to raise wages over and over and lose any international competivity. The eBelgian minimum wage is 1.50BEF. A new citizen with low production earns 1.80BEF per day on the eBelgian job market. It’s a wage set by market forces and is already above the minimum wage. This is good, because the minimum wage is not binding. If we increase minimum wage it will distort market forces.
There is a problem however. A Q2 food costs 1.85BEF. The lowest wages in Belgium are 1.80BEF. New citizens can’t buy Q2 food so they will lose wellness day after day. This is where the government should come into action. Look at the Q1 food, eBelgiums food market is flooded with it. Some of the companies producing Q1 food should receive government subsidies to step over on producing Q2 food. This way prices will go down and be affordable for new players.
But new citizens need to work in Q1 companies. Since Q1 weapons are still quite expensive for new and not-so-old players, state companies should be created to produce Q1 weapons. New citizens should be pursued in working in the weapon industry. A rise in weapon industry companies will lower the price of weapons.
Once the economic circle starts to do its work, lower prices will attract international interest. This will make the prices rise and eventually the wages will rise. eBelgian government gains a lot of money with the state companies and can raise taxes slightly to further augment state incomes. eBelgium needs to be an example of effectiveness and dedication. A strong bureaucratic government needs to lead economy and correct distorted market forces. The government should make a profit but should not be profit-maximizing. This way wages should not drop drastically while prices are going down. Lower wages won't be a severe problem as international interest should make the BEF rise compared to gold.
eBelgian government shoul
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1. Subsidize Q1 food companies to Q2. This will make new players being able to play the game without losing wellness.
2. Subsidize weapon industry or create state companies. This will make weapon prices drop.
Off course, this is still a model and does not deliver guarantee of instant enrichment. The government needs money for it which is the primary issue. But the current economic situation is comparable to a headless chicken. eBelgium needs goals. This article delivers a model to achieve the goals of prosperity and neutrality.
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True and worth a try! It is a game after all, we can all go to our RL fridge for our RL food. Time for eBelgium government to act is now 🙂
😃 Indeed! Wonderful effort.
good analysis but I am not sure it is completely accurate
About point 1, new players can aford to lose a few wellness. Falling to 70 wellness is not really a big deal for a new player, it will be recovered later. The difference of productivity between working with 70 wellness and working with 100 wellness is quite hard for a higl lvl player but is small for a new player. (it may be one point of productivity). In other words, the advantages of keeping the wellness high for a new player don't worth the cost of Q2 food. (1 point of productivity is paid less than 0,5 BEF).
2 Belgium is a neutral country so not likely to be involved in a serious war. So that means there won't be a huge market for guns.
The only way for guns to be sold is to be really cheap in the international market which means low wages and low profits
Well said. While I disagree with the need for weapon companies, the food issue is a good point to bring up. I fear, however, that the newer players that can't afford Q2 food, wouldn't understand the need of it. I brought an idea like this up on the forums, if we chose to subsidize companies, there will need to be intense regulation to make sure that they do indeed offer cheaper food. Contracts will be needed.
It's true that new player can afford to lose wellness. But they should be stimulated in a way that they shouldn't. Also I'd like to add that also Q3 food companies can be subsidized as they sell like mad on the international market.
To make the need for Q1 weapons bigger, eBelgium needs to be involved in international politics without harming its European neutrality, in this way war industry can function in full throttle.
To end this reply I like to point out this is a model which *can* work theoretically. It's open for discussion and it's also an invite for people, government and economists to propose other and better ideas. This policy of non-economics needs to end as fast as possible. There needs to be a vision to guide it.
In the economy the problem is organisations who sell stock but who have no workers. that brokes the market.
Good analysis.
I'm not much of an economolologist but I know we need a kick in the economic pants and this makes a lot of sense.
I think we do need a weapons company to provide a stockpile of cheap guns for the army and a cheap resource for citizens who want to rank-up in the TWs. Which, if they have a stable health situation, they should be encouraged to do.
I would ask something about a subsidized housing program, too, but with v2 changing housing so much I don't think we want to go there until we know more.
I might rethink the idea that it is ok for people to drop to 70 wellness though. Someone with the time/inclination should plat out the productivity of a zero skill/100 wellness and the increase in skill/decrease in wellness that would occur from working in the various Q level companies to determine where productivity will decline.
Also factor in how will the 70 wellness person recover said wellness with all the v2 changes.
the difference between working at wellness 100 or 70 is a 20% productivity for any skill.
If that 20% more productivity worth less than the difference between Food Q1 and food Q2, then that doesn't worth it to keep your wellness high to produce more because even if your GM is fair and pay you the difference in prod, you will lose money
I wrote up a reply to your plan here: http://www.erepublik.com/en/article/on-the-keynesian-model-for-the-ebelgian-economy-1276681/1/20" target="_blank">http://www.erepublik.com/en/article/on-t[..]/1/20