Economy Article by Lefty

Day 1,201, 20:06 Published in USA Singapore by Lefty from Mulberry St
All men are created equal, where you go from there is up to you...




A change is needed. I seek to facilitate that change. What are the changes I speak of?

Not enough exporting from the eUS.

Lets pretend this screen works, and showed what was imported and exported...
The reason congress keeps having to raise income tax is due to lacking understanding of economics. There must be enough revenue to fund our military, MMPs, and so forth because tax revenue is equivalent to national security. Without proper funding, we are a nation waiting to be occupied. Raising taxes is a temporary fix that takes profit from the worker whereby decreasing the ability to spend. We must fix this or perish.

Somewhere along the line, the military started communes, where pay is minimal to increase profit resulting in it costing less to run an effective, well armed military. I see this as a detriment to the eUS economy as a whole. Why? Reduced spending on account of low pay to military personnel and lack of economic stimulation in the areas of weapons, food, iron and grain.

As I've said before, iRL, during WW2 America did not defeat Nazi Germany with peasants in communes to save the government money, but with responsible business practices. Hard workers worked long hours because "He who relaxes, helps the Axis." They where paid a livable wage and didn't frickin jump job to job for an extra couple nickels. This resulted in decades of prosperity for The United States of America, despite war spending.

Translation: Workers used lots of boosters and worked at high wellness, loyally and for American companies.

We must adhere to reason in-game because math is math, and the numbers/game mechanics are king. There is nothing wrong with military owned business, however, if they are run in a way that decreases the spending ability of 100s of our citizens and serves to segregate our economy into military and private businesses, they are a detriment.

I do not run communes, well one, but its for a political party and no one works there but me.

I no longer try to keep up with the job market wages either, if I did, I'd go broke due to low wellness workers, market fluctuation and over production.

We must collectively figure out economics.

Everyone acts like there in the poor house
Who takes the time to make sure they are buying from an American company?
Does saving 0.01+ USD really matter?
Do you quit your job for a 0.50 USD raise?
How long have you had your current job?
Jobs tend to pay more than is produced, you either quit or get fired.

Point 1- Sending USD out of our borders hurts us. We have every resource we need and really have no use for imports except to help keep prices honest. Imports are sold here due to the profit margin allowed by our back-assward policy on Import Tax. We have maintained 1% import tax since I started playing until recently, and that has made it difficult to run a company in the eUS that sells to the eUS. I am happy to see that we now have a 20% Import Tax on all land based industries excluding Stone, although 20% import tax is likely to over-discourage importation which results in a lower number of companies that sell here, and potentially less resulting revenue. A balance of these aspects will result in increased revenue without having to tax the pants off of everyone.

Point 2- This applies to weapons and food especially. I buy mostly Q5 food and buy from myself if I need Q1. I have USD and don't care what I have to pay as long as it's beneficial to our economy. The dollar amount you pay means nothing, the gold amount is the exact opposite. Gold in game works like gold/silver etc does iRL, it gives currency it's value. I would be happy to sell, say grain, for .05 x currency each; that is if I could sell x currency for enough gold to make a profit. According to our current gold/currency exchange rate, booster use is a waste of gold because you can not generate enough profit to be paid enough to repay gold use for boosters.

Point 3- There are more companies than citizens.
I pay 0.08 per unit produced because the grain market bounces between 0.08 and 0.09 per unit. My employees stay because they get it. Say what you wish about the intelligence level of eRep's citizens... But any fool can work a calculator. They stay where their GM gets it because the reality of working for more than you produce is an effort to prey on noobs and those who are mathematically challenged. You can go work for "top dollar" and then get fired and repeat, or you can work somewhere that pays a fair wage and not hurt the overall eUS economy.

Point 4- All my employees but one works at 100 wellness, they do not get fired. When the market is up, I pay accordingly, when it's down, I pay accordingly.

If 1 Gold can be bought for 50 USD and you produce 1000 units that sell for 0.11 USD each, your gross pay will be 100 USD.

This in a nutshell is how a responsible employer does wages.

Point 5- Made it already, read points made above.



So what do we do?
"We don't do nothin." I search out people who get it and you reap the benefit via the economy. Hopefully my effort will be all that is needed to make a change because if not, we just may be lost. I intend on paying what I can and exporting to reduce the over-saturation of our markets without decreasing the volume of products sold each day.

P.S. Farming is good, but weapons being sold for 20 USD that cost the farmer 18 USD to produce kills the market as a whole.