Article
DAY 641
London - The worldwide baby boom hit its apparent peak on day 639, when the planetary population grew 17% overnight (and 42% in the UK). This was quickly countered by a sudden crash in the number of new players, as the signup rate slowed down to a net 3% population increase yesterday. Secura’s four largest countries (Poland, Romania, Argentina and Taiwan) saw their population increase fall from double-digits earlier in the week to barely noticeable increases. Swathes of multis were also barred from leveling up further, which is identifiable in countries such as Poland or Argentina, whose numbers sharply fell during the boom period, just one day after a significant boom.
Markets experienced accelerated positive commodity deflation, as was projected by the Austrian Perspective one day before the UK’s considerable baby boom. While most prices just stagnated, grain prices fell continually, day after day, from a high of 0.50 GBP on day 635 to a record low of 0.15 GBP today. Judging by international grain markets, it is unlikely that grain is to fall further in the coming days.
Wages did fall, however, because of the new huge supply in the labour markets, but this decrease was quickened by the rash decisions of the Ministry of Finance to raise funds in the pockets of the new players. The Ministry of Finance offered an unlimited number of jobs for 15.00 GBP a day, even in low-skill markets. Skill 1 wages fell to 6.71 GBP from 9.01 GBP a day before the Ministry of Finance’s scheme-- an overall 26% fall. This was the hardest hit suffered in the bottom 5 job markets, but skill 3 jobs also fell by 6%.
The Ministry of Finance’s consumption stimulus was, albeit very well-intentioned, fueled by a desire to stay in power (ordered only a couple of days before an executive reshuffle) and a lacking knowledge of game economics. No firm that employs British low-skilled labourers can afford a 15.00 GBP salary, and as such none can compete in that market anymore. No new player would consider an offer of 6.71 GBP anymore, either, especially when visually juxtaposed against the MoF’s 15.
A common argument given by pro-government supporters is that the Ministry of Finance was countering the wage deflation by setting wages to new highs, and that the private sector wage decrease only correlated, but was not caused by, the Ministry of Finance’s scheme. Actually, these two events are tied by causation, and the harder wage decrease was definitely caused by the Ministry of Finance’s scheme: unreal wages caused low-skill firms to stop hiring people, giving way to cheap jobs still on the market. We can see this happen using other statistics of the economy, such as Productivity. One day after the MoF’s scheme, nationwide Productivity fell by 10,000-- a 14% decrease-- and today another 3,000-- a 5% decrease (note that one day before, there was a 13% increase, and the day before that a 10% increase, in Productivity). Low-level firms, of which there is a strong concentration in the UK, stopped producing as much as they used to because they could no longer find British employees.
So what could the Ministry of Finance have done to prevent the economic issues it has just created, or what could it do now to reverse the effects of their scheme? Well, to regain confidence in this month’s Ministry of Finance I would hope to see their 15.00 GBP wages disappear from the markets, and have private companies compete once again for low-level employees. If the Ministry of Finance needs employees for its own companies too, it should set its wages at the market rate and not at unreal rates, which have visibly damaged our economy.
The scheme was initially set out to enrich the new players, and the government can still do just that without threatening the nation’s prosperity. Instead of setting wages for 15.00 GBP a day, the Ministry of Finance can give guaranteed basic incomes of 105.00 GBP a week to new players who sign up for the program. The program would terminate after two weeks, as players would receive wages worth considerably more than 105 GBP a week at that time anyway. Players would still actively work every day for their daily missions, growing the British economy, and would be considerably wealthier-- which is what the Ministry of Finance wanted to do at first anyway.
This alternative plan would have no apparent negative economic consequences, unlike the current plan, apart from a stronger purchasing power (when tied with positive commodity deflation), which leads to stronger armies with larger supplies nationwide. If the Ministry of Finance really wanted a stronger economy, it would follow the Austrian Perspective’s recommendations.
TL;DR (because apparently my articles are too long)
- We had a baby boom (so did the rest of the planet), but it’s coming to a halt now.
- More players means more supply in the job market, lowering wages
- The MoF knew that, so it set wages at 15.00 GBP in low-skill markets to give more money to low-skill workers
- This killed off job market competition and was basically the MoF shooting itself in the foot, because the economy tanked soon after
- So, I say we get rid of these price floors and replace them with guaranteed basic incomes of 210 GBP every two weeks for new players, lasting two weeks
- This will basically do just what the MoF wanted to do, but without the economic collapse.
And to finish off, a relatable quote from economist Milton Friedman: “One of the great mistakes is to judge policies and programs by their intentions rather than their results.” The MoF’s plan was judged acceptable by the government for its intentions, but the Austrian Perspective roots for its repeal because of its results.
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About the game:
USA as a world power? In E-Sim it is possible!
In E-Sim we have a huge, living world, which is a mirror copy of the Earth. Well, maybe not completely mirrored, because the balance of power in this virtual world looks a bit different than in real life. In E-Sim, USA does not have to be a world superpower, It can be efficiently managed as a much smaller country that has entrepreneurial citizens that support it's foundation. Everything depends on the players themselves and how they decide to shape the political map of the game.
Work for the good of your country and see it rise to an empire.
Activities in this game are divided into several modules. First is the economy as a citizen in a country of your choice you must work to earn money, which you will get to spend for example, on food or purchase of weapons which are critical for your progress as a fighter. You will work in either private companies which are owned by players or government companies which are owned by the state. After progressing in the game you will finally get the opportunity to set up your own business and hire other players. If it prospers, we can even change it into a joint-stock company and enter the stock market and get even more money in this way.
In E-Sim, international wars are nothing out of the ordinary.
Become an influential politician.
The second module is a politics. Just like in real life politics in E-Sim are an extremely powerful tool that can be used for your own purposes. From time to time there are elections in the game in which you will not only vote, but also have the ability to run for the head of the party you're in. You can also apply for congress, where once elected you will be given the right to vote on laws proposed by your fellow congress members or your president and propose laws yourself. Voting on laws is important for your country as it can shape the lives of those around you. You can also try to become the head of a given party, and even take part in presidential elections and decide on the shape of the foreign policy of a given state (for example, who to declare war on). Career in politics is obviously not easy and in order to succeed in it, you have to have a good plan and compete for the votes of voters.
You can go bankrupt or become a rich man while playing the stock market.
The international war.
The last and probably the most important module is military. In E-Sim, countries are constantly fighting each other for control over territories which in return grant them access to more valuable raw materials. For this purpose, they form alliances, they fight international wars, but they also have to deal with, for example, uprisings in conquered countries or civil wars, which may explode on their territory. You can also take part in these clashes, although you are also given the opportunity to lead a life as a pacifist who focuses on other activities in the game (for example, running a successful newspaper or selling products).
At the auction you can sell or buy your dream inventory.
E-Sim is a unique browser game. It's creators ensured realistic representation of the mechanisms present in the real world and gave all power to the players who shape the image of the virtual Earth according to their own. So come and join them and help your country achieve its full potential.
Invest, produce and sell - be an entrepreneur in E-Sim.
Take part in numerous events for the E-Sim community.
