Article
A person who cares more about the firm owners rather than the low and middle income players might think that increasing import taxes sky-high increases their profits. And it certainly does. However the increase in profits is not as high as the above model would predict, because eSim allows player transactions to evade import taxes and embargoes.
If the prices in the country increase due to a rise in import taxes, some citizens of the country can move to the countries where the goods are cheap, and sell them in their own country without paying any import taxes. This drives down the prices and lessens the negative impact of the import taxes on damage output.
On the other hand, the profits that would accrue to the domestic firms and the government go into the pockets of these profiteers that I choose to call “smugglers”. The producers of the country who actually invested their resources to make profit lost, and so did the government. And these profiteers whose only merit is to notice the arbitrage opportunity collected all the benefits, while taking no risk, investing no more than a small operating capital, and producing nothing in real terms in the end. Neither are the consumers as better off as the case with no protectionist measures.
So, in eSim’s unique case, protectionism doesn’t only reduce welfare as seen in the real world case, but also creates opportunities for profiteers, whereas it reduces government revenues and profitability in the domestic country.
eSim Feature 2: Speculation
Speculation is the art of buying low and selling high. A player with a large storage capacity and lots of money can buy everything he sees on the market, and sell all of them at a higher price than he bought them. If he is fast and wealthy enough, he can make a profit out of this. In effect, this increases his own personal wealth, at the cost of hurting everyone else. For example, Kyxoan did with q1 weapons a few weeks ago.
The greatest obstacle for the speculators are the marginal taxes. In the case of weapons and food, a VAT rate of about 3-4% is generally enough to prevent speculation. However in the raw materials market there is no VAT.
So although low import taxes are better for damage output as a whole, one might still want to have a small percentage in the raw materials markets to prevent foreign speculators from interfering with our markets. Unfortunately there is no cure for domestic speculators.
Conclusions
Given all the discussion above, I am tempted to give exact numbers I deem optimal for the US right now, but to prevent accusations of bias, I will refrain from doing so. Suffice to say that I am advocating for a relatively free trade policy, despite the fact that I own enough companies to personally profit from protectionism that most of our congressmen and old players are a fan of.
I hope my article will be helpful for all eSim players and eUS Congressmen to have an educated opinion international trade, and policy decisions regarding import taxes.
This is John Richards talking. Kemal Ergenekon has a PhD in economics in real life; he is very knowledgeable about the subject.
I am calling for a 10% import tax across the board. This change would really only affect 3 industries:guns, food, and gifts. Personally I was 7-8% but 10% is a very fair compromise. If you read all that, my hat goes off to you.
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Another Article Regarding Taxes [Part1] (12 years ago)
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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.
