On the Markets
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by Alexander Hamilton
As it has been widely reported and written about the War Games in Baja have been very successful at raising the eAmerican's wellness and military preparedness. However when using a different metric the War Games have wreaked havoc on the Grain, Food, Wood, and House markets. The War Games have reduced the need for eAmericans to purchase houses and high quality food to increase their wellness. By fighting once and healing themselves in hospitals eAmerican's have increased their productivity, but unwittingly cratered whole industries. These adverse and unintended consequences of the War Games have been written about already. However I have not seen many solutions, so I will propose some.
Wood Market
The government needs to commission more hospitals and defense systems. Hospitals and defense systems require a lot of wood to build, thus removing the glut of wood in the market.
Housing Market
5% income tax break.
Grain Market
5% income tax break.
Food Market
3% income tax break.
The government can use its largess to remedy the wood market because it is the only entity that can purchase hospitals and defense systems. The same cannot be said for the housing, grain, and food markets, which are driven by private consumption. For these industries I believe a temporary tax break could help alleviate the pain, especially if the War Games are extended for another month. There are many who will point to overarching macroeconomic flaws in eRepublik and they may be right. However I believe that the War Games have excasterbated those flaws in the eUSA.
It is possible that the market will adjust on its own and that government action is not needed. That being said, I don't believe that is a valid excuse for government inaction. eAmerican businesses are suffering and shutting down production, the government may not be able to completely solve the problem but it can alleviate the pain.
Action may not even be needed if the War Games come to a close at the end of April, but if they continue into May the government surely needs to study the adverse effects the War Games are having on the eAmerican economy.
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I agree with your point about the glut of wood in the market. Maybe if the government supplied gold to companies for export licences the wood could be removed. I don't think however that the government will commission more hospitals and DS's. This I know because I was temporarily in the Q1 hospital business and scrabman told me the eUSA government is only buying Q5 hospitals and DS's.
It's a good thing overall. The average citizen not having to spend money on "maintenance", gives him a much bigger discretionary income which allowing him to level up quicker.
Our increased productivity means that we become an exporter to the world. This keeps the prices prices higher on the goods we export. (We export 5 times what we import)