Join the new world

There are some that will say the "Free Market" economy wont work. There are some that will call us/you greedy capitalists. The honest truth, which is the same debate that has been going on for quite some time now both here in Erepublik and most coffee shops, is that they both have flaws, even in a world that has a multiplier built in for employee presence.

Let me start by saying that even in RL, there is no such thing as a true "Free Market", just as there is no such thing as Utopic Communism. Some regulation is necessary, just not in the market itself. The use of taxes to lower prices, and regulation of currency are both tools that are necessary in maintaining stable economies.

Now that we have that out of the way.....

Productivity - Positives and Negatives

You have already seen articles on the Controlled Market productivity and why it's better. No one can deny in a game where mechanics say that the more employees you have the more you produce, that more=better. There is, however a problem with this logic.

For starters, Erepublik has a certain overproduction problem. We are in a time of peace, and eventually people will build up so much stock that they wont be able to sell it all, and some companies, even in a controlled economy scenario will go out of business. Either that, or the government will subsidize so much it makes the currency worthless, one or the other.

Competition actually bodes better for the common man, the working man (or woman), if you will. While it may lower productivity slightly, it also creates other bonuses that controlled markets will not. It will encourage better hiring and management standards because good employees will be harder to come by, and in the end the employees will earn more increasing their own opportunities.

One of those bonueses is an opening in the markets. This is done through exportation of goods, which creates an open niche. Say our domestic Q3 weapons supplier begins selling to a country in a time of war, and removes all their stock from our own markets. Not only does it provide room for another company to upgrade in it's stead without cutting the throat of both companies, but it allows for new companies, new GM's, and new citizens to do more. Currently, the only thing we can do in our controlled economy (which some will argue isnt controlled, but is at least partially controlled through the use of taxes, subsidy, and legislation) is buy houses and get jobs. There really isnt much of an opening beyond one or two companies, and with our recent surge in population, there should be more than enough invite gold to create more.

The other bonus is an increase in activity. There isnt a single person, whether in Government, Congress, the UKRP, PCP, TUP, or otherwise that should or can say who can and can't own a company. Good managers will rise to the top, and with our new citizens there is absolutely no way to continue screening and pruning people for positions when so many are ready to take that step to success. We have seen several prominent new members such as Hassan (spelling?), Raef, Satya, and so on that have written well informed and productive articles on a whole mess of topics. This may or may not make them good company managers, but just because someone isnt vocal doesnt mean they dont have managerial skills. By keeping our controlled economy we may miss out on some citizens looking for opportunities because they think they simply dont exist in the UK.

For instance, needing to be in Congress to be a minister. Why should that matter? If anything, the President's Cabinet (which is more or less what a Minister is, for those who arent familiar) should not be in Congress, because they're the ones putting the info forward. It's up to a President to pick people they can trust and that can do the job, and if they choose someone who's dodgy or ends up taking money, etc then it falls back on the President as well. Congress should be completely seperate from the Cabinet, and in my opinion people should be limited to one Governmental Role (whether it be Mayor, Congress, etc) to spread the wealth and experience.

But, thats a bit more of a rant than an example. Still works, but back to the subject...

Marketing/Activity shines through

In a controlled market economy, there's only so many different places you can buy food, weapons, etc from. That means that if you happen to have one of these companies, then you're almost guaranteed sales. It takes away from the manager's ability to market their brand, sell their goods, that sort of thing. You also take the benefit of originality away. What good are benefits, etc if all companies offer them, and all companies are equal?

So, in effect, here's what my personal opinions are on how to implement this. This is my opinion and not that of anyone else:

1. Remove VAT taxes on everything except food and moving tickets. This will keep governmental income at a decent rate while making things cheaper to the consumer. The company doesnt benefit from the VAT, and having it in food will keep a stable source of income.

2. Regularly monitor our markets for stock. If that stock is low, then propose to lower the import taxes until domestic supply increases. Markets, while free of interference still need to be watched closely, and normal adjustments should be common. For instance, if prices are too high in housing, why not lower the import rate? Companies will import houses to the UK, and domestic companies will lower their prices to compete. When the prices have stabilized and domestic stock is built, then raise them back up.

3. Remove all subsidies outside of war time. Government programs should receive stipends (such as Paratroopers, etc), but companies who cannot make it simply cannot make it. It's up to each individual owner to make good business decisions and find ways to sell their products. Unfortunately some will not make it, but that doesnt mean we should stop them from trying (or "discourage", however you want to say it).

4. Open Door Policy: Anyone should have access to their government, GM's and employees alike. If a GM has a problem with something, then they should be as open to the Government as a citizen who feels they've been treated poorly.

5. No Interest Upgrade/Export Loans: While exporting, long term (6 week for export, 3 month for upgrade) loans should be given to businesses that are ready to be taken to higher qualities. They will be required to leverage their companies against the loan, and pay it back free of interest. This will open opportunities to lower quality markets for newer players.

6. More Governmental Function/Less Social Focus. We all know Erepublik is a Social place, but the Government should worry more about that than some of the other things we've seen. That should be left to the common person and/or one specific committee. I think the House of Commons could find better uses than handing out awards.

7. First hand reporting is definitely a big goal. First off, I think the Newcastle Matters publication has done a fantastic job of giving summaries to the Congressional activities thus far. With Frufru announcing resignation, someone really should fill that hole (I know Raef has been trying to do that, but we now have the House of Commons SO as well). Things that are both proposed and voted on in Congress need to be posted before the voting ends. Otherwise, we're not really acting in the will of the people, but rather the will of our governing party.

Overall, that's my "How". Call it my unofficial Manifesto, considering I am not running for anything, but a more independant place can be managed, and there's no reason to think otherwise.

Sorry for the absence. I have been ill.

Dish