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My secretary

Hello,

eAmericans, we have a problem on hand and its name is eRU AMERICAN PATRIOTS F2u0+6x

In short, they are conducting a type of economic war on us currently. They are trying to harm the business' in the country by rapidly forcing down the price of food and grain directly. Does anyone else find it interesting that they are an EDEN company? Their description :

" A project of the H.A.H.A.Department of Damage EDEN DEFENSE FUND...AMERICAN PATRIOTS serves as America's defense against hostile economic actions. Correspondence according to official H.A.H.A.Department of Damage protocol only."

Defense AGAINST hostile economic actions? They ARE the hostile economic action. Deflating the market by over 25% in 24 hours is a prefect example of economic warfare. Myself and several others believe that this could be and likely is the first step on a path to war between ourselves and a new European alliance.

Rapid inflation or deflation can very quickly devastate any economy. Consider that business' hire people and pay them based on two factors : Skill level and Profit considerations

Skill level is self-explanatory , profit consideration on the other hand has 1 major driving force: Competition (both in the form of selling the good to the consumer and in the wages paid to workers )

For those the think the rapid decline of the cost of food and grain is a good thing, consider this : What is going to happen to the wages of the employees when the businessmen can no longer turn a profit?

Moving forward, I am going to break this article down into 2 parts : One for the business owners and another for the consumer.
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CONSUMER :
The reality of Erepublik and life in general is that owners make an assumption when hiring people as to how valuable their work is. In order to be competitive, they have to give you a wage that is satisfactory based on job market. Good workers are rare and coveted.

Owners hire people because they are assuming that they are going to be able to turn a profit from the work that you do. If you cost them 30 USD a day, as long as they are making a satisfactory amount above 30 USD, then your salary should remain safe, or perhaps improve.

There are 3 factors that decide if you are making satisfactory profit for the business :
- The amount of product you produce for the salary you own
- The current market price of the product on the market
- Owners desired profit margin

So, if you earn 30USD a day, produce 260 grain for example, in a market where owners get .13 USD per grain, your job and salary is probably safe. The owner would be making 3.80 USD profit off of your work. However, if the market drops, like it did recently, and grain only sells for .12, well, then you are looking at 100% wellness only making him a profit of 1.2 USD a day. 300% less profit. The risk of you not working at 100% wellness will likely drive this owner to have to fire you , or reduce your salary. If the market drops further, to .11 per grain, then he can only , best case, make .30 USD profit a day. This will cause you to lose your job or salary.

Being that all Erep markets are interconnected in that way, if one industry experiences a downward trend, they all do. That makes a domino effect happen and all jobs across the board begin drop their salaries offer.

Inflation and deflation of the market does not hurt the economy if it is done in a slow manner. If the "invisible hand" works its magic slowly, then business' and workers have the time to adjust to adapt. When prices fall by 25% in a matter of 24 hours though, that is called rapid deflation and it will cause many business' to have to fire people quickly and quickly reduce wages to keep them profitable.

Rapidly lowering prices is harmful to any economy.

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BUSINESS OWNERS :
To make this short and sweet, HOLD FIRM ON PRICES
We cannot allow this company to hurt our economy. They started off with over 21,000 food and over 190k grain in reserve. They are down to 1,800 food at the time of this report. They are running out and if we hold firm in prices we will recover completely in a day and their effort would have been in vain.

GRAIN : Bring prices back up to .13USD where we had them and hold firm. If everyone does it, we will be fine. There are more than enough US food companies to buy up our product. Lets hold firm at .13 USD.

FOOD : Q1 - Bring your prices back up to .90 or higher and hold firm. Dont worry about someone undercutting you will a little bit of food. They will sell out quickly and then you will sell out and make more money.

By doing both of these things, we will be able to retain all of the workers we have at their salary and not have to close down anyone.

Lets work together to ensure that eR UTOPIA is unsuccessful in their attempts at waging economic warfare on us.