The Economic Effects of Lana
Day 820, 11:36
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Published in USA 
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by
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by mjmnum1
Go to ereptools.net. Go ahead, I'll wait. Take a look at the charts for world prices of anything in the past 60 days. They've plunged.
World Price of: Q1 Food Q1 Weapons Q1 Gifts Q1 MTs
December 0.011 0.095 0.034 0.15
February 0.008 0.065 0.025 0.12
US Price of: Q1 Food Q1 Weapons Q1 Gifts Q1 MTs
December 0.02 0.108 0.045 0.18
February 0.015 0.086 0.031 0.14
Gov. Revenue per unit (gold) Q1 Food Q1 Weapons Q1 Gifts Q1 MTs
December 0.00132 0.0076 0.00272 0.012
February 0.00096 0.0052 0.002 0.0096
Q1 Food Q1 Weapons Q1 Gifts Q1 MTs
Gov. Revenue loss per unit (percent) 27.27 31.58 26.47 20
If you look at the charts, you'll see prices stayed relatively constant after the institution of Lana for about a month, as player gold stashes were depleted. As soon as that gold was gone, prices began to decline. Unfortunately, it doesn't look like that price decline is going to stop any time soon.
Why? Lana is swallowing the economy of Erepublik whole. Were this RL, I'd note that wages are plunging to reflect the new economic trend, and that the market will correct itself. Individual earning power will decrease, but because of the powerful deflation, purchasing power won't really decrease all that much.
So, why is this bad? It's annihilating governments. Cut governmental revenues by 30% and countries can't go to war as often. Cut wars by 30% and you'll see retention plunge. Wait, you mean we already are?
V2 better come out soon, b/c Lana is killing the game.
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agreed, v/s
good stuff. Lana is making this an elitist game. Makes it less fun.
Hot damn!
agreed, vote and shout
[removed]
I CANT MAKE MONEY AS A COMPANY OWNER!!!
Without a doubt, prices are dropping. But the connection to Lana is tenuous. It is speculation to say that the delay between the arrival of Lana and the world-wide recession is due to people using up their gold reserves. And why would Lana affect the price of Q1 food? People still consume that, one unit a day. Lana may be a contributing factor to some of these declines, but I doubt she is the main factor.
I think the greatest factor is gross over-production. There isn't much to do in this game, running a company is an attractive option. As more and more people run one or more companies, production exceeds demand. GMs engage in pricing wars to move their goods, prices drop. As prices drop, GMs cut wages to stay afloat. As both prices and wages drop, the government has less revenue from VAT and income tax.
This is a familiar cycle in Erepublik, even before Lana. In the past, global war has helped turn-around the deflation, but the effect is short-term. Inevitably, new weapon companies are launched to take advantage of the price spike, and so production increases until it exceeds demand, and we're back on the downward spiral.
THEY TOOK OUr JOBS!
now that that is out of my system. Lana is going to eat us, what are we to do we cant just pack up and move (well you can but that just stupid) we cant just fix what the Eeconomy is doing we just sit back and let the government deal with it, they know what kind of problems are going on, just for the love of god dont borrow money from japan to give 200$ to every one lol
"As soon as that gold was gone, prices began to decline."
Interesting thesis. But your article does not make a connection. How does dumping gold & RL money into training lead to a decline in prices? It's not like we're eating less food or buying fewer gifts.
However, I do wonder why prices are declining ...
Another effect recently is that Armies around the world have been pulling some of the most productive workers out of the economy and having them work in Army-owned companies. Small wages, less taxes, and less money. The Armies have self-created their guns, but very little of that flows through the actual economy. How much of an effect does *that* have on our economies?
11th and voted
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Good article. Good points by Quanah Parker and mjmnum1. I'd like to see more discussion here. 🙂
P.S. - Lana is the Anti-Christ. "Spike The B**ch, Eat The Rich."
wth is this? 0.108 for one weapon?
wow its my avatar picture
did you look up explosion too?