High wages, low yields - eGlobal economy in malfunction
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by Jonathan Druck
Day 2955, Dec 23, 2015
War, war never changes, But nor does the economy. While some Citizens may be saving up energy to fight the next rebellion or conquest, the fundamental core of the nation's economy are broken. Ill be careful to say this - NO INDUSTRY IS PROFITABLE.
While a Citizen can reach a point of self sufficiency with a few pops of RL gold, new players are absolutely baffled by how to make a profit in the game. No doubt they are correct to be. The simple reasoning behind this is that when taking an over view of prices in the market compared to wages, there is no margin of profit.
Lets assume the average wage is 32 currency units.
In examination of sample 3 sized range countries performed by yours truly, in best case you will be losing ~50 currency units on a production cycle of Q1 food, in an increasing manor for every quality food level going up to ~100 currency units for Q5 food providing 10 energy tick.
This negative profit margin is not limited to Food. The same results are repeated in Weapons Industry. While war machines are considered a national interest and much of the production and purchase is government subsidized. The production yields no guarantee of any profit, let alone investing up to 1220 gold to reach Q7 weapons victory. Q6/Q7 Weapon which market prices are considered today very costly for the buyer are a huge sinkhole for the producer at -166 CU and -487 CU at working wage of mere 32 CU as stated above.
Housing, which require works and are not produced by general manager are in deed a small surprise in income at 32 at CU. It is possible at a sell price of Q1 house of 457 CU to hire the 9 workers and still make ~164 CU (considering a low National VAT% of 1😵
. However, How active is the housing market? are indeed the wages at 32 CU in your nation? In many cases, this is just not the case, 3 out of 3 counties the wages are higher if not double the examined range.
In conclusion, Raw materials to finished good are no good news. Until wages drop to as low as 8 CU in countries or prices rise up to meet current wage average. Worker employment should be halted. Nothing wrong with being self sufficient until the price is right and starving the markets.
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Well, there is a lack of workforce and that's why we have such high wages. I remember when I joined this game, I earned so little money that I even couldn't buy one Q1 food.
Onrop,
I totally understand the issue at hand, the biggest problem of getting work force is the lack of players in the global community and specifically for Israel (very small population country). I have come back to playing the game just a few days ago and ran into the same issue as previous session. The economy is so broken, you will run out of money very fast even if you buy gold packs with RL money, there is no real way to progress at a sensible rate. While this may be a very slow moving game, few excel sheets later other than being self sufficient as stated in the article a number of times there is very little of chance of producing anything with higher quality at price/wage ration. Considering how some players take a bit longer to figure out the game, most go broke in a day or two, leaving the game very quickly.
When you look at other counteries even with +yields there is no margin of profit, it is clear the issue is very bad in game economy increasing wages to get more workers results in very negative results in sales.
While I believe much of the productions cost in your case are subsidized by military unit or government to ensure unit activity by providing weapons or food the end result is complete wipeout of any new growing community as well as eventual draining of funding in both units and in government.
creating a profitable market with reasonable export taxes will cause more players to move and produce locally and generate tax increasing both military power as well as funding.
You are absolutely right. The game developers disregarded the economic module for the last years. There were no significant changes although the community demanded them. The focus is on the military part and thus you have to concentrate on upgrading your training facilities in order to get more strength per day.
When they changed it that you can only have your citizenship currency only, it ruined the economy too
This game is a trap!
you are completely right about the economy being broken and it hard to make a profit, however if everyone was to get on the band wagon and put low wages out on the market ppl would work in other countries instead.
My additional follow up article discusses the implications of employer market instead of employee market. If wages were low, it would be possible to work for a wage in another employer and make a considerate profit exporting from Israel in a progressed state of companies, this would be much more profitable than just living paycheck to paycheck for all sides involved.
It's not profitable to hire workers in countries with low bonus, and probably with bonus also not.
For a new citizen, best option is to get a work in Serbia, Romania or Croatia, with wages around 94 cc
Good article!
Thank you for your support.
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interessant. lese später
Spot on. o7