How our Government works ~ A citizen's guide to our economy ...
Day 467, 12:02
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Published in Japan 
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by
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by WaseemK
Ever wonder what our Government ideals are? Ofcourse these won't be 100% accurate but there based on acknoledgement and perspective.
So basically our government plans for "growth". Market competition will eventually bring out the best of citizens and we shall see that golden growth. Now one thing for sure is, I'm a firm believer of competition; its an aspect of life.
But sometimes we won't get enough houses, hospitals, or even weapons. Fact is, people build stuff where they want to build it, when they want to build it, and how they want to build it, no matter what the government says. So the few times when a government draws up a plan, it will only work if the citizens comply.
What does that mean for the argument that free markets are superior to a supposedly well-regulated economy? Are our current economic problems “proof” that markets don’t work and that government is the solution?
Well, NO.
The superiority of free markets to the centrally planned is not based upon a magical ability of businesses or even markets to operate flawlessly or at optimal rates every single time. Businesses will often make huge mistakes, and we have known for months and months that markets will constantly fluctuate, even wildly. But it works..
Our markets are ultimately led by basic forces such as supply and demand, customer desires, and of course competition, they are anchored to forces within the economy as a whole. No matter how out of place they get, the long-term trend is always going to be in the right direction. More economic growth, satisfying customer demands, better quality at lower prices, and increased productivity and efficiency. Its self-correcting.
A couple weeks ago, I was watching TV with a couple friends. I don't how it got to that, but the news anchor said California will devise up a 12 year plan to build a freeway. I know that socialism is a failed experiment, as demonstrated by the failure of the Soviet Union, socialism’s most devoted practitioner. My socialist friends, somehow, think that they are smarter than the Russians and that socialism will work here in California if we just have the right plan. I basically lol'd that whole hour.
In short, our government in Japan doesn't run on plans. But on growth.
--whac
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So basically our government plans for "growth". Market competition will eventually bring out the best of citizens and we shall see that golden growth. Now one thing for sure is, I'm a firm believer of competition; its an aspect of life.
But sometimes we won't get enough houses, hospitals, or even weapons. Fact is, people build stuff where they want to build it, when they want to build it, and how they want to build it, no matter what the government says. So the few times when a government draws up a plan, it will only work if the citizens comply.
What does that mean for the argument that free markets are superior to a supposedly well-regulated economy? Are our current economic problems “proof” that markets don’t work and that government is the solution?
Well, NO.
The superiority of free markets to the centrally planned is not based upon a magical ability of businesses or even markets to operate flawlessly or at optimal rates every single time. Businesses will often make huge mistakes, and we have known for months and months that markets will constantly fluctuate, even wildly. But it works..
Our markets are ultimately led by basic forces such as supply and demand, customer desires, and of course competition, they are anchored to forces within the economy as a whole. No matter how out of place they get, the long-term trend is always going to be in the right direction. More economic growth, satisfying customer demands, better quality at lower prices, and increased productivity and efficiency. Its self-correcting.
🙂
A couple weeks ago, I was watching TV with a couple friends. I don't how it got to that, but the news anchor said California will devise up a 12 year plan to build a freeway. I know that socialism is a failed experiment, as demonstrated by the failure of the Soviet Union, socialism’s most devoted practitioner. My socialist friends, somehow, think that they are smarter than the Russians and that socialism will work here in California if we just have the right plan. I basically lol'd that whole hour.
In short, our government in Japan doesn't run on plans. But on growth.
--whac
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I'm a very big fan of RL economics. When other kids wished to be astronauts, I wanted to be a banker. I hope you can keep coming out with these articles, on economics with eRep and RL. Or perhaps we can have a lively discussion on matters such as quantitative easing, haha.
Thanks for the article!
I can def. use more economy lessons (RL or otherwise), 😉
( sorry origineel, modelcon. lol )
interesting. but i wonder, do we really have to go through a rough time before we see "golden" growth? it goes for erep and RL. it seems to me that periods of robust growth are always preceded by downturns in the economy
@justinm: I think that is just that when times are good people caost along regardless. It is only when things get bad that they bite the bullet and get stuck in to improving things and ignore the unnecessary things and luxuries and that is what increases growth rapidly.
Sorry, but after watching free market forces/concepts (all of the derivatives, loan swaps, etc.) wreck the US economy in short time and take the world economy with it, I think the notion that a pure free market will fix itself is bogus. It might have been true when markets will simpler, but in this financial world (where everything filters through multiple layers) it's clear that people with power will use that power for personal gain, not what is best for society as a whole. Government has a responsibility to protect citizens from abuse (i.e. the creation of bubbles by profit-driven organizations, when the collapse of that bubble is something average citizens have to pay for) and give all citizens equal opportunities at success, since the majority of the actors in a market will not do that and the sense of equality and protection is essential for society to function well.
Miyato-
Look, no one here is calling for a pure free market. Few things are economically destructive as that. If you follow Keynesian principles (the most popular school of thought worldwide) in economics, then you will find that the government does indeed play a central role in the economy and business.
But let's not argue over RL finances. That's a mess, and I doubt that many in eRep truly can grasp what's going on (I certainly can't.) But in eRep, everything is so simple. It's easy to work at the best possible rate. It's easy to check out competitors and cut prices. Let's just keep the discussion on eRep. Here, the pure free market is the best scenario for the country. With such simplicity here in eRep, when businesses prosper, the country prospers. Just make sure you have adequate taxes to levy on them.
The original article points to RL issues, and the core argument is that free market principles are best both here and in RL, hence my argument. Is the eRep economy functioning as it should? I have no idea. I can say that after watching the free market people run the economy into the ground in RL, how a group of people got rich off of the backs of the larger populace, I think there needs to be a balance between free markets and a system that provides benefits for people without punishing them. When companies are taking an active role to improve the wellness and financial situations of eRep citizens, then maybe the free market forces will have a point. But in general, both in RL and here in eRep, companies are only concerned about the bottom line. And if companies are not going to help their citizens be successful, then the government needs to do its part.
Ouch socialist friends 😉
Nice article, the USSR was going for Communism but convieniently stopped on the step where there is one leader who is pretty darned powerful. Karl Marx was right, people will not give up power unless they are forced to.
The United States government in RL is obviously fiscally responsible with its 11+ trillion dollar debt, why on earth would we trust politicians to regulate the economy (on a purely financial basis) In my opinion the federal government has little place in economic regulation of markets within out nation, the only regulation that should be done by the federal government is to regulate imports and place environmental standards.
Apart from that the more the government controls the economy the easier it gets to control the population in general, making us one step closer to a fascism.
I think its different in eRep though, socialism can work here with the proper logistics and smart leaders given that we don't really have to worry about our rights being taken away.
I think its different in eRep though, socialism can work here with the proper logistics and smart leaders given that we don't really have to worry about our rights being taken away<
Well yes it's definently duable here in eRepublik. Pakistan for most of it's history was centrally planned. It would have succeeded to even today; but the government just didn't have enough control. Go Figure~
i think it's a misconception that purely free markets exist. at the backbone of all functioning markets is a strong regulatory system and the laws surrounding it. although the government is not directly involved in the planning of private individuals they certainly can limit what is allowable.