Economic Principles, 101, and How they relate to you: An Overview
Day 290, 05:15
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Published in United Kingdom 
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by
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by Dishmcds
Determining your Pay
So, welcome to Erepublik! I would like to be the first to say, that quite frankly you can take a good majority of what you know about Economics (if anything), and throw it out the window!
Now, so I don’t sound so discouraging, I’ll explain. Yes, some of what you know will apply, but your variables will need some adjusting.
So, our economy is based on two main types of currency, being Gold (International Standard) and GBP (Local Currency). Each country has it’s own type of local currency, and Gold is how we can relate the strength of local currencies together. So, that’s the first step. Knowing how much you make (or don’t make, whichever term you prefer) compared to Gold is paramount to judge how much buying power you actually have.
Next, we’ll look at the Recommend Exchange Rate, or RER as I’ll call it from here out. We’ll set some basic facts to lay out the rest of the article.
The current RER in the eUK is 19.01 GBP to 1 Gold.
The current minimum wage in the eUK is 1 GBP per day, or .05 Gold.
The current cost of Q4 food, in terms of Gold is .09 Gold, before VAT.
Now, we’ll look at production. I’d say that if you’re working in Food (my industry of choice at the moment), and you’re skill 1 you’re probably producing anywhere from 1.5 to 2 units of food per day. There’s a long production calculation (which you’ll see when you work) that we won’t exactly get into here (since all it will do is create a “free market” vs “controlled economy” argument). Basically, the more employees you have the more you’ll produce, but the higher quality the company the less each employee can produce. It is kind of a catch 22, but works out in the long run. Basically, higher quality goods take more time to produce, more or less.
So, if you’re new here, which we all have been at some point or another, you can expect to earn 1 G (at the minimum wage which you most likely will earn until skill 2.5 or higher) every 20 days. That may sound like a long time, but in reality, you can expect a raise after about a week. So, realistically about 10 days to your first Gold coin.
The Quiet Killer
Next, we’re going to take a small look into the Gifts markets for a moment. Recently, prices have risen (since they finally dropped the VAT on Gifts) to a standard of 1.50 GBP per Q2 gift (and they normally sort accordingly). This has been over the last week or so, and our stocks have been depleted due to the Romanian War (which isn’t necessarily a bad thing). Workers can expect to make between 2-5 GBP per day depending on skill at the moment (and since I don’t work in gifts, that’s an estimate which may be a little off, but that’s that I would pay if I owned one myself).
Well, now we have an Indonesian Company, under the SO “Dharma Group” which has opened a company called “Perfect Gift”. They have been sending offers to citizens with salaries often twice what other companies not only will offer, but can afford at the moment. Since our gift market hasn’t necessarily kicked into gear again (and if you own a gift company, can we start to hire again?), if the Indonesian company has any kind of capital (and from experience, there have been occasions that their Government has backed SO’s in other countries to lower prices to this point) then they could very well continue to produce gifts.
So, there is pretty much two explanations.
First, offering salaries that much higher than the other companies will:
A. Drive the market price up, because they will be able to out-produce each and every company
B. B. Put all the other companies out of business
C. Cause a rapid rate of inflation due to having the much excess cash placed into the economy in a daily basis. There have been reports of offers of more than ½ Gold per day to produce gifts.
So, they either don’t understand the correlation between local currency and Gold, which I doubt, or:
They are purposely trying to drive others out of business.
Now, if they want to “compete” then so be it, and I can completely sympathize. There’s nothing wrong, in my opinion, with opening companies across the seas. But trying to put others out of business, without realizing that we’re all dependent on each other (which I’ll explain in a moment) is unethical.
Now, the dependency part:
Eventually, every company will upgrade. There are very few companies (and mostly Government run, especially in the UK) that will not. Each business owner wants to progress, and if you start at Q1 (where all new companies start), you’ll be forced (due to saturation and overproduction) to upgrade to continue to make money, even by offering out of this world salaries. When you do upgrade, you then rely on those Q1 companies you were just competing with to train citizens to be able to work in your companies (since you can no longer hire citizens below your quality level). So, putting them out of business is a bad thing.
The initial step is this: Don’t work for them. Work for us. Advertising your company, creating a “family” atmosphere and having benefits packages and health plans (gifting) are large incentives to employees, especially new ones. Create a name for yourself (which many companies here have already done) and keep your employee base happy.
And finally, a message to “Perfect Gift”
Please do not purposely offer high salaries to drive companies out of business. I, for one, would like to know:
A. Are you backed by anyone, since at those rates you’ll put yourself out of business?
B. Are you simply offering more to draw employees or put others out of business?
I await your answers if you’re willing to answer them. If not, I recommend all employees (which I believe DG will find an incredible sense of Nationalism in the UK) work in other companies until they state their intentions. Our aim is to have more companies, not less.
Thanks
Dishmcds
So, welcome to Erepublik! I would like to be the first to say, that quite frankly you can take a good majority of what you know about Economics (if anything), and throw it out the window!
Now, so I don’t sound so discouraging, I’ll explain. Yes, some of what you know will apply, but your variables will need some adjusting.
So, our economy is based on two main types of currency, being Gold (International Standard) and GBP (Local Currency). Each country has it’s own type of local currency, and Gold is how we can relate the strength of local currencies together. So, that’s the first step. Knowing how much you make (or don’t make, whichever term you prefer) compared to Gold is paramount to judge how much buying power you actually have.
Next, we’ll look at the Recommend Exchange Rate, or RER as I’ll call it from here out. We’ll set some basic facts to lay out the rest of the article.
The current RER in the eUK is 19.01 GBP to 1 Gold.
The current minimum wage in the eUK is 1 GBP per day, or .05 Gold.
The current cost of Q4 food, in terms of Gold is .09 Gold, before VAT.
Now, we’ll look at production. I’d say that if you’re working in Food (my industry of choice at the moment), and you’re skill 1 you’re probably producing anywhere from 1.5 to 2 units of food per day. There’s a long production calculation (which you’ll see when you work) that we won’t exactly get into here (since all it will do is create a “free market” vs “controlled economy” argument). Basically, the more employees you have the more you’ll produce, but the higher quality the company the less each employee can produce. It is kind of a catch 22, but works out in the long run. Basically, higher quality goods take more time to produce, more or less.
So, if you’re new here, which we all have been at some point or another, you can expect to earn 1 G (at the minimum wage which you most likely will earn until skill 2.5 or higher) every 20 days. That may sound like a long time, but in reality, you can expect a raise after about a week. So, realistically about 10 days to your first Gold coin.
The Quiet Killer
Next, we’re going to take a small look into the Gifts markets for a moment. Recently, prices have risen (since they finally dropped the VAT on Gifts) to a standard of 1.50 GBP per Q2 gift (and they normally sort accordingly). This has been over the last week or so, and our stocks have been depleted due to the Romanian War (which isn’t necessarily a bad thing). Workers can expect to make between 2-5 GBP per day depending on skill at the moment (and since I don’t work in gifts, that’s an estimate which may be a little off, but that’s that I would pay if I owned one myself).
Well, now we have an Indonesian Company, under the SO “Dharma Group” which has opened a company called “Perfect Gift”. They have been sending offers to citizens with salaries often twice what other companies not only will offer, but can afford at the moment. Since our gift market hasn’t necessarily kicked into gear again (and if you own a gift company, can we start to hire again?), if the Indonesian company has any kind of capital (and from experience, there have been occasions that their Government has backed SO’s in other countries to lower prices to this point) then they could very well continue to produce gifts.
So, there is pretty much two explanations.
First, offering salaries that much higher than the other companies will:
A. Drive the market price up, because they will be able to out-produce each and every company
B. B. Put all the other companies out of business
C. Cause a rapid rate of inflation due to having the much excess cash placed into the economy in a daily basis. There have been reports of offers of more than ½ Gold per day to produce gifts.
So, they either don’t understand the correlation between local currency and Gold, which I doubt, or:
They are purposely trying to drive others out of business.
Now, if they want to “compete” then so be it, and I can completely sympathize. There’s nothing wrong, in my opinion, with opening companies across the seas. But trying to put others out of business, without realizing that we’re all dependent on each other (which I’ll explain in a moment) is unethical.
Now, the dependency part:
Eventually, every company will upgrade. There are very few companies (and mostly Government run, especially in the UK) that will not. Each business owner wants to progress, and if you start at Q1 (where all new companies start), you’ll be forced (due to saturation and overproduction) to upgrade to continue to make money, even by offering out of this world salaries. When you do upgrade, you then rely on those Q1 companies you were just competing with to train citizens to be able to work in your companies (since you can no longer hire citizens below your quality level). So, putting them out of business is a bad thing.
The initial step is this: Don’t work for them. Work for us. Advertising your company, creating a “family” atmosphere and having benefits packages and health plans (gifting) are large incentives to employees, especially new ones. Create a name for yourself (which many companies here have already done) and keep your employee base happy.
And finally, a message to “Perfect Gift”
Please do not purposely offer high salaries to drive companies out of business. I, for one, would like to know:
A. Are you backed by anyone, since at those rates you’ll put yourself out of business?
B. Are you simply offering more to draw employees or put others out of business?
I await your answers if you’re willing to answer them. If not, I recommend all employees (which I believe DG will find an incredible sense of Nationalism in the UK) work in other companies until they state their intentions. Our aim is to have more companies, not less.
Thanks
Dishmcds
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Comments
Besides, Dharma Group\'s actions can only lead to a crash in the gift industry. If workers in that industry want to continue to have an industry to work in, it\'s in their best interests to not work for \"Perfect Gift\".
voted
I made the choice of the UK as my starting country because I have always seen them as level-headed. I can see my choice was not misguided. Voted.
Theres a lot of good info here but i cannot see how most of it relates to the topic.
Its the hard thing about economics especially in this game. Everything relates and so keeping on track is hard.
i assume your point was that any foreign GM looking to buy a company in another country should pay the same gold rate wage as he would is his own country? This isn\'t entirely true as in a closed economy the national produce is pretty unaffected by foreign prices and so wages could be low as long as prices where also low.
its the difference between a country that’s good at exporting and one thats bad at exporting (gold wage/price rate).
The advice i would offer would be to do market research. Ask current GM for what they pay and look at food prices. If you are feeling \"kind\" or want to beat the competition then raise wages slightly but its best from a profit point of view to keep in line with the national companies.
And what about the economical principles?
This is just propaganda to your companies.
They are your companies too, if their income increases then the U.K market will prosper. Surely the PCP wants only the best for the U.K economy? Or does your allegiance lie with others?
@Bremer: Your comment is a misguided attempt at discrediting me personally. This is an overview to show people how to relate their pay to Gold, rather than local currency considering it\'s the only true way to judge how you get paid.
At least KIA took the time to comment on what he thought about the article, even though it missed what I was trying to say. I dont believe I mentioned Aurum at all, so please troll somewhere else.
I have read this article and now understand why I was directed to read it.
As a new player I was offered a job by True Blue and I took it, I assumed the 1GBP I was being paid was the average rate for the job I was doing. Then this Dharma Group offered me a job at double the wage and I quite obviously accepted it, assuming the wage I was being paid before was simply below average. I understand the points raised in this article but I am sure that you understand that a new player such as me and perhaps more experienced players are going to jump at the chance to double their paypacket.
It is not enough for those more experienced players to simply ask people to refuse lucrative job offers out of patriotism, this kind of protectionist economy would be highly unstable. I don\'t understand the economics or politics of the game but surely the UK must be able to compete with these groups?
Forgive my ignorance of matters . . .