Why communism doesn't work
Visor Of Blades
Some smart people have recently claimed that a tax the rich, feed the poor policy is a suitable mechanism to improve everyone's income. Let me explain why it doesn't work.
First point: it was suggested by the said group of smart people to make a system "similar to real life". That presumably refers to the fact that there are different tax slabs for different income groups - very low income (0 tax), low income (10% tax), middle income (20% tax) and the high income (30😵
tax brackets.
That is already a fundamental flaw - the major portion of this "income" is salary. Fair enough. No way to get out of that - more salary = higher tax bracket. "But you need to add tp income" I hear you say. Sure. TP "income" and BH "income", mind you, are different from absolute gain from those medals.
What if the said player is investing in houses and packs for the hunt? In real life, it is the NET income that is taxable, not the absolute income. Everywhere. Even when you sell shares on BSE/NSE, you pay tax on the profit. You have to subtract the cost of buying the said share. If you sell potatoes, you subtract the cost of procurement gor them.
And there is no way to say how much you paid for packs. You can trace donations, but one can easily circumvent that - I will donate, let's say, 1 million cc to buy BP, and some amount of food and weapons which will be given to me on a pre-determined date, which is in the year 3020. How much did I pay for each good? Since neither buyer nor seller differentiate between it, you also can not. Also, the seller can claim selling part of the material at loss, adding new problems - he can claim that the weapons were being given at lossy price as part of the transaction. The said weapons or food will never be transferred as eRepublik won't be around for 1000 more years.
Second, you can tax someone for the profit they make from selling food, weapons, etc. Again, you have to tax the net profit, not absolute sale value. If I as a company reinvested every profit I make to grow the company, that means I owe the government no tax. If I incurred net loss, I not only don't pay tax this time, I can carry forward that loss for upto 8 years, and count profit against that loss, and as long as the total profit is lower than the said loss, I pay no tax. I will pay tax after I have made profit, which I can juat reinvest and show as no operational profit - that's why Trump pays so little tax.
Even if all that doesn't work, I as a taxpayer have one more option. I have few companies that I need to work in. For that I need energy and for that I need recovery. So for that I need to hit in battles, and that technically counts as operation cost. So any weapons, food etc that I uae for that, I can count as operation cost and reduce my shown profit.
Second point: the part where you donate the "collection" to poor account. Multiple studies have shown that if people are given freebies without putting much effort, they are less likely to put more effort to get more stuff, and this holds true even if the freebies are insufficient to cover their expenses. Obviously, more the freebies, lower the effort. And once it crosses the income they need for now, they put no effort for the sake of income, thereby removing all chances of income growth. That is essentially why even though you have many examples where highly capitalist-oriented economic models that have worked, not a single model based purely or close to communist or socialist structures have succeeded. Every single one of them has failed, and each failure was more miserable than the last, The USSR taking top spot in this regard. Before you say China, go read about their economic model. They are a socialist GOVERNMENT with a capitalist economic model.
Sure, you cam loan them. For that I'll give you a seemingly unrelated example but be patient. So recently (maybe 1-2 months ago) the Security and Exchange Board of India (SEBI) introduced a new requirement for mutual fund schemes (specific to those in equity) to call themselves as "multi-cap" funds. Let me clarify the words - all companies listed on the stock exchanges are categorised into 3 categories - small cap, mid cap and large cap. This relates to the size of thw company - smaal companies in small cap, and so on. What multi - cap funds used to was to buy and sell stocks across these categories, but very often would have a large amount of money invested in large cap companies - many times in excess of 90% of the funds they managed.
So what SEBI did? They made a rule that at least 25% of the money has to be in each of the caps (accounts for 75😵
, and the rest 25% can go wherever, and is allowed to change with time, as long as the remaining percentage is handled. What is the problem? The problem is that small cap companies can not soak in that much money.
The amount of money these guys manage, mind you, is not like the pocket money that dad gives during college to pay fees and such. These numbers run into thousands of crores (each, for bigger ones), which can buy out many small cap companies many times over. To give a comparison, selling one share in Shree Cement will give enough money to buy around 60 shares in Wipro, and Wipro is not a small company. Think of companies you have never heard of, like Esther Industries (plastics and packaging). One share in reliance will give you 150-ish in Yes Bank.
Similarly, if you give me suddenly 1 million cc and say go make companies, my company system (of 170+ companies) will break down. Such a system is doomed to fail from the start.
Third point: Plato can give freebies. Sure. He can also reduce legend damage, and even reduce the number of weapons that a company makes. He can even triple the raw material costs. He can evem add extra zeros to the TP medal requirements, and make it 100 trillion instead, for lowered reward of 10cc. No problem here.
But then, if the prospect of being a strong account is that your income will be targeted, apart from losing your free income, what will you do with the freebies? Go put it in fixed deposit scheme at post office (they have good intrest rates BTW). Nobody will use the freebies, and those top account will stop buying packs, because why will you pay a guy to extort you? And soon Plato will not be able to maintain the servers, and the gsme, along with all the time and effort you did not put, will die.
But the people who suggested this scheme are smart people, and surely they have a way to explain it. So let me go a step further and explain why this model works:
You get rewarded for paying with money/time. That's it. Just like you do at the store - if you have money, you can buy stuff, and if you work there you get an employee discount. Reward for effort. It's that simple.
At the smae time, effort at being bad gets bad effects too - if you steal from a supermarket you get beaten up, if you steal from Apple you go to jail (except Bill Gates ofc), if you steal from Modi you get lynched, if you steal from Walmart you get into the wall of shame, and if you make a shit script you lose 140k cc overnight.
This is the end of the article. Thank you for reading.
And if you got offended and are hurrying to write an angry comment, I thank you even more because I'm probably not going to respond to it and it will keep my article up in your stupid face even longer.
Comments
😎😎😎😎
Look who is here 😇
omg😱
Two points -
1) Both Microsoft and Apple stole from IBM.
2) "Even if all that doesn't work, I as a taxpayer have one more option. I have few companies that I need to work in. For that I need energy and for that I need recovery. So for that I need to hit in battles, and that technically counts as operation cost. So any weapons, food etc that I uae for that, I can count as operation cost and reduce my shown profit"
Socialism encourages that the these particular tools be subsidised and a set amount given to everyone to ensure basic fighting/farming. eRep does give you one company and three FRMs for free. To get started and then you can only go up from there.
Also - "Multiple studies have shown that if people are given freebies without putting much effort, they are less likely to put more effort to get more stuff, and this holds true even if the freebies are insufficient to cover their expenses. Obviously, more the freebies, lower the effort. And once it crosses the income they need for now, they put no effort for the sake of income, thereby removing all chances of income growth."
Citations required.
https://www.businessinsider.com/people-dont-value-free-stuff-2017-6
https://www.bloomberg.com/news/articles/2015-06-05/we-love-free-stuff-even-when-it-doesn-t-make-economic-sense
https://www.bluesodapromo.com/blog/why-are-people-attracted-to-giveaways-the-science-of-free/
1) Bill Gates was a half-joke here. Point was taht there will be rare exception to the rule, but don't count on it to work in your favour
2) for subsidy in socialism, refer my comments on why freebies won't work. Few citations marked in replies to your comment
COMUNISM WORK VERY WLL BUT CAPITALISM MAKE PEOPLE SLAVES AND WITH BIG DEBT REALY SHIT
Communism failed bro. Communism will never succeed because human beings are shitty. And transferring control to the state still keeps the control of resources in the hands of the exclusive few.
NEVER FAILED JUST IN HIBERNATION
Bro, where has a complete communist system worked? If a system is in hibernation for decades together, it's not in hibernation, it's dead
ALL WORLD JUST THEY CALL IT WITH ANOTHER NAMES
Give one name
ALL WORLD THATS ALL 🙂
If all the world is communist, and the cause of slavery is capitalism, then are you implying that slaves never existed?
If I'm wrong, clearly I didn't understand this name. Gice a different one
NEVER IMPLYING THAT SLAVES NEVER EXISTED JUST SAYING DIFEREND REGIMES DIFERENT MEASURMENTS OF ENSLAVING
THIS GOS NOWERE TO TALK ABOUT IT WAS INAF GOOD LUCK 🙂
Ok
wait wait, I will first be more literate and if I remember will debate on this article after a few yrs😶
I'm not going anywhere
Don't use capitalism as an excuse and hide the fact that you are not playing the game optimally. I've heard stories about ppl spinning for 10000s of ccs and spending tons of gold to upgrade companies before black friday. Yes your so called capitalists spend money on useless shits. The same money which could have been so much useful for hard working people who don't buy packs.
And before u call my account is shit to invest on go look at ur accounts first and see how shitty they are. This game is about team work too. I not only ask freebies. I ask to invest (offer loans, provide schemes which makes ppl make factories in India, help them avoid using market and try to make employment opportunities in India). The current script oriented game will die soon once Plato introduces captcha for companies and fighting and then all ur scripts and packs won't help u save it is the numbers that will save. Why depend on few ppl when u can play collaboratively and optimally?
My account is special because I have a massive food production, which I was able to deploy during resource wars, which I reckon saved a lot of cc for eIndians. Even during the anniversary event, I am able to sell at least small amounts hwre and there.
Brkn is special because if required, he can do big amounts of damage in crucial wars, and same gora for other high strength account.
What is so great about your account? That you are juat another account? Or that you produce a deficit amount of food? Or that you tried to steal government money?
Many new players have got government support long before you came and will be given long after you are gone. Sbk, Su-30 and few others were regular recipients of the food program when I was in charge. Today both are more useful pilots and I have not one problem with that.
When we decided on not giving food supplies to high strength players, they were the first to say it's a good plan. When I suggested a bonus for low strength players, the people who had high strength were happy to help.
So the people who need help have been given the help we can give them. It may be yoo much, it may be juat enough, it may be too less. But they know that when they need us, we are there.
It's not your account or other people's account that's the problem. You are the problem. And so, only you can be the solution. Mend your ways, and the world will change right before your eyes.
how can u even compare your account with my account rofl. I'm laughing literally.
Well you can't, I beat you at almost every thing other than brainless tanking
very funny 😃
These comments of yours say what kind of character you have mate! Saying “feeling is mutual” might satisfy ur little child’s ego in your head 🙂 but remember visor did sell his food so cheap and you don’t even dare to compare with his 🙂 he is happy with his contribution and community is happy with him. While you are unhappy with ur profile and community isn’t happy with you as well. He did sell food without expecting any personal favour while you helped rss event expecting personal favours. There is a huge difference in character. O7
We have given him many chances to correct himself. But I don't know if he is a blockhead that refuse to learn, or does he have some fetish for public humiliation, but he absolutely and completely refuses to learn
Comparing our accois an insult to me, the average account and below average tank.
The feeling is mutual 😃
You are garbage. You are yrash. You have no achievements.
V!
o/
/me grabs >popcorn
[removed]
Why hasn't my stimulus money arrived yet?
https://en.wikipedia.org/wiki/Distributism
Basically, there are alternatives to both capitalism and communism, such as this one. Too lazy to write about it, but this article is a easy read, and it has link to other possible alternatives too
Ok
Why are eRep articles so long, oof
Lol