MoED proposals and recommendations to President

Day 753, 16:43 Published in Israel Israel by BuzzyTheCat

Companies we should have

Q1 weapons – formerly in the IDF Weapons Org (Value unknown, company missing from Org)

Q2 weapons – formerly in the Minister of Defense IDF Org now in the IDF Weapons Org (Value – 40 gold with 14 Q2 weapons in stock)

Q4 weapons – In OBOI (Value – 250 gold with 40 weapons in stock)

Q1 food – In OBOI (Value – 40 gold and 147 food in stock)

Q1 moving tickets – In OBOI (Value – 40 Gold 26 tickets in stock, 170 oil in company)

Q1 moving tickets – formed as a training company under CJ and Baju, don’t know where this company is now (Value unknown, apparently missing)

Q1 gifts – In OBOI (value – 20 gold)

Total companies worth to country = 390 gold not counting 2 companies of unknown nature

Recommendations:

Fill the Q4 weapons company with Iron and cash and begin sustained daily operations. Conservative expected income on foreign markets – 2.5 to 3.5 gold per day of operation. Ideally at some point upgrade the company to Q5

Find the second moving ticket company if possible. Then sell it off. Keep IDF Lavi Planes (the moving company in OBOI Org) because it has an export to Spain. Fill and begin daily operations. Conservative expected income on domestic and foreign markets – 1 to 2 gold per day

Reopen the food training company. Expected daily loss from training workers <1 gold a day.

Either upgrade the gift company or sell it. Q1 gifts will never make a profit worthwhile to operate the company.

Turn over the Q1 and Q2 weapons companies to the IDF leadership. Operate them out of the IDF budget.

Purchase a Q1 housing training company. Our construction industry is sorely lacking (in fact it doesn’t even really exist) This is not good considering it not only limits our ability to import citizens who may have construction skill, but it is also the only other industry which Israel can actually be competitive in besides Manufacturing. What we do with the finished houses is up for debate, whether they are sold for profit, sold at a subsidized cost to Israeli citizens, or simply donated to poor but established Israeli citizens.

Ideal recommendations:

Open a Q3 or even a Q5 weapons company with exports for profit. Also consider purchasing weapons companies in other countries for pure profit. For example a Q3 in Poland, before I upgraded my personal weapons company in Poland, I was making about 4 gold a day and selling every weapon within hours of putting it on the market. A properly managed weapons company is a cash cow. Gifts are a money pit. Food and moving tickets have very low profit margins. Food can become profitable to a degree at higher quality levels and may be something we look into in the future (I am thinking Q4 or Q5 food here because of the profit margin and because we lack any domestic Q4/5 food companies)

Long term I would like to open a company at every Q level in weapons and sell these products on foreign markets for profit. (Separate from the IDF weapons companies, which for all intents and purposes do not exist from a government perspective) There was also talk back in my day of opening raw materials companies in other countries which would then import reasonably priced materials into Israel, subsidized slightly by the government to keep costs low. If we went this rout, I would suggest a minimum of Q3 Iron in Spain/Greece and Q3 grain in the US or a developing but resource poor south American country (any country with Diamonds or Iron will not be a profitable grain country because the wages get skewed towards the high income of Iron: see Indonesia and Spain)

On the idea of loans. I am fairly against the idea unless the player asking for the loan is a long time Erepublik citizen (I am thinking 6+ months in game here) and they must be willing to sign very extensive contracts for the money with a set and rigid repayment schedule. I have seen government loans go bad multiple times in places like the US and Canada, and in the end, the government ends up swallowing the sometimes mutli hundred dollar loss. Obviously, the company would be held as collateral through a contract in return for the loan.

My vision of government run companies is that of pure profit for the most part, barring the mandatory training company. I believe if a company cannot be profitable, then it shouldn’t exist (I lean far right IRL to the point of almost being Libertarian) I do not believe in government funded life support for companies, which are too weak to operate on their own. For example, our grain market. Israeli grain will never be profitable AND reasonably priced no mater what we do. In my opinion, any money spent trying to sustain the Israeli grain market is wasted. Following that train of thought, that is why I am suggesting we dump 1 of the moving ticket companies (possibly ask the IDF if they would like to purchase it at a reduced cost) and the gift company (unless it is upgraded to Q2, it will never make money) They are both low profit margin industries, and are really not worth the time and effort needed to operate them properly. I suggest keeping the one moving ticket company simply because there IS profit to be had, but it is small and not worth having 2 companies in the same industry.

The main problem I see with our current domestic companies (not government owned) is that we are heavily invested in low quality. Our food market is a prime example. We have 10+ domestic companies selling Q1 food, only 2 at Q3, and none about that level. Weapons is another interesting market. We have a ton of Q1 companies, a few Q3 and Q4, and 3 Q5s, but almost no Q2 weapons. Our weapons market is the most well filled out market we have, and it is in my opinion the cornerstone of our economy. There really is no quick fix for the situation however. I believe prolonged stability of the country and currency along with import taxes will find the equilibrium point of our manufacturing sector. Companies come and go, but the companies who stay eventually upgrade and get smarter. There will always be new players opening low quality companies. There is also the possibility of giving 1-time subsidy payments to low quality-established companies to upgrade. Something like a 1 time payment of 500 NIS to a Q1 company who would like to upgrade to Q2. (think of it as a kind of Federal Tax Credit)

I know I ask a lot, but asking for more than you expect gives room for reasonable debate and negotiation 🙂