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eSocialism for a Stronger Philippines

+9
Aersidius
Erion Clow Reed
Eugene Bautista
Revilo X
Berritas
Myung Kei
Paul Delos Santos
Shnipe
Hekter
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Post by Hekter Fri Feb 11, 2011 6:10 am

We've already discussed this extensively in the past, but times have since changed, and the topic has attracted new interest. While we won't be nearly as effective without a 50% income tax, 25% is enough to stifle most of the industry irregardless—look at starting a company in the eUS at 23% to get a feel for how annoying that tax is.

The Situation
PHP recently crashed because of Admin intervention and the Colombia-Philo war, and our economy is staggering under the weight of competing with outside forces and PHP continues to flow out of the nation.

We have two options to fix this:
1. Raise taxes and hoard PHP.
2. Nationalization.

I have to severely doubt the effectiveness of option 1. Our taxes bring in very little PHP—most of the “tax” we do receive comes from the VAT of the Defense Department buying its own goods to supply soldiers. The economy is simply not active enough for us to be able to pull off enough PHP to fix the market, and only addresses a symptom, not the problem.

Nationalization gives us a ton more control over our economic situation and future.

Who Owns the Economy?
We have a few major business owners in the ePhilippines, who operate in semi-corporate large conglomerates.
Department of Home Affairs – Run by the Government, provides mostly food.
Philippine Defense Department – Provides weapons for itself, and employs a large portion of the economy.
X Industries – Run by Revilo X with focus on supplying DoHA and PDD companies. Additional companies in tickets and food, especially after the merger with _33 Industries.
Junji Corporation – Run by Paul Delos Santos and Eugene Bautista, it mostly sells abroad and self-supplying PDS and Eugene's growth in strength and military prowess. Also provides the highest Q tickets [Q3] in the nation.

However, there still are minor owners, generally with less than 3 businesses in ePh.
Tricell Inc – Run by Kijuju, and has been an oil exporter for a very long time.
Anti-Corp – Run by Ernir and also provides for DoHA and Q1 foods. 2 Grain, 1 Iron, and 1 Food company.
Ojan – Runs a Q5 tank co in the Philippines, has significant businesses in Iran as well.
Jolly Jeep – Q1 Foodz run by Nelson John Marcos.
Rockstar Corporation – Relatively new corporation started by Aersidius.
Berritas – Small RM companies.

These people are the ones that control our jobs, provide our taxes, feed our people, provide our weapons, and everything else that touches us daily.

The Problem with Exports
Simply put, if we rely on exports, we are not fixing our domestic problems or economy—we are simply offloading them onto another country. If that country goes down or suffers an economic collapse, not only are they ruined, but so are we. I do not know about you, but I'd rather not pin our hard work on someone else.

So How Do We Make This Work?
Simply put, raise the taxes, start yelling like a maniac everywhere, establish supply lines of PHP, and start partying all over the place.

Taxes
Income: 25%
Vat: 25%
Import: 99%

Speaking bluntly, tax the bloody hell out of everything that ever existed. By doing this, it eliminates any chance of surviving privately, leaving the government's nationalized companies to control the economy.

Wages
Government sets what are called wage tables that each company in the nationalization program follows. If you are a Q2, you pay X amount of PHP for a wage at level 5, et-cetera. These will be established later and tweaked to match the PHP value on the market.

Company Management
Company owners are basically refunded a certain percentage of tax, depending on sales, etc, to help pay their workers through the combined 50% tax [VAT and Income]. Company Owners will have separate wages based on how many companies they run and etc. This will be worked out in more detail later.

Simply put, to all you accountant business managers, you will have to keep track of your money. This will be a paperwork-heavy process, unfortunately, to make sure we are not springing any leaks.

Prices
Prices will be published and set by the government, and all companies sell that product at that price. Eg: Q1 food shalt be sold for X PHP. Companies that undersell these price points can and will be cut from the program, and thus become unable to survive.

Currency Management
Limit and stockpile PHP. Raise the value by strangling the money supply, lowering the price of goods and wages to match that.

The End Goal
1. Become self-sufficient, especially when it comes to Raw Material imports.
2. Drastically raise the value of PHP. With complete control over the currency, we can pull up the value as much as we would like. I would shoot for at least 0.02. I would go higher, however, just to see if we can do it.
3. ???
4. PROFIT

The Negatives
There will be a bit of turmoil. Transitioning to a nationalized economy will, quite simply, not be the prettiest thing. There will be companies still holding onto the past prices, currency will take a while to be absorbed into the government, et-cetera. For a little while, it'll be a bit crazy, but I assure you that we will be better and stronger in the long run.

Oh, and we kill the private market.

The Positives
Self-sufficiency. The Government can direct the economy to focus on everything it needs to focus on. More supplies for the military, more opportunities for the average citizen to buy products. Earlier this evening Revilo X remarked that Devoid had once stated that “An economy is strongest with large amounts of imports and exports.”

I firmly believe that the best economy is one of “Where the worker can receive the closest value to the amount of goods he produces.” If you can produce 12 food a day, you should be able to afford to buy at least 5 of that food a day (to take in the fact that you need grain for food).

Plus, any extras we make we can either increase our supplies to the military in times of military need, or sell off to other countries in bulk.

The Specifics
If this is something that seems like a good idea for the future of our nation, I will begin working out details on price lists, basic policies, company owners, wages, and et-cetera. So comment, voice your opinion, and in general let me know if this is what needs to be done or not.
Hekter
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Post by Shnipe Fri Feb 11, 2011 6:25 am

Talked about it a lot on IRC, I'd be all for it... would be if I could still use Napoleon, but meh. I can live without it. Also, the best way to do this is if individuals keep their companies and work with the gov't willingly, imo. That way we keep citizenship bonus, and if this falls apart, they don't end out losing 50+ gold. I had something else to say... but I can't remember it. Meh
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Post by Hekter Fri Feb 11, 2011 6:37 am

The gov't is not directly taking control of companies, and companies cannot even be bought by orgs any more. We will be working as much as we can with existing businessowners.
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Post by Paul Delos Santos Fri Feb 11, 2011 1:53 pm

Let us set-up a meeting with company owners soon. I'll create an article later regarding this topic :)
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Post by Myung Kei Sat Feb 12, 2011 1:20 am

We accidentally the private market.

But anyway I support this plan, the inflation has to end, and I would prefer a stronger hold on our currency.
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Post by Berritas Sat Feb 12, 2011 2:43 am

I support this though it may be the end to new companies opening up.
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Post by Shnipe Sat Feb 12, 2011 3:30 am

Berritas, it would mean you'd have to work with the government to make a company in ePH.
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Post by Revilo X Sat Feb 12, 2011 3:56 am

I support this plan.
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Post by Berritas Sat Feb 12, 2011 10:11 pm

Shnipe, I already new that :/
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Post by Eugene Bautista Sun Feb 13, 2011 1:56 am

I also support to this plan
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Post by Erion Clow Reed Sun Feb 13, 2011 8:57 am

NATIONAL SOCIALISMMMMMMMMMMMMMMMMMMMMMMM!!!!!!!!!!!!!!!
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Post by Hekter Sun Feb 13, 2011 9:09 pm

Hokay.

I've been running numbers just on food, and RM prices literally need to be at least half what they are.

To be competitive on a world stage, we'd need to cut prices by 40%, and wages by 35%. Thus, citizens will actually still be getting more for their money, but it will look like less. This is problematic. What we can do is match it to the local economy and then do this later, though this requires a significant amount more coordination and effort.

Eg: Grain needs to be at .05 PHP at the current exchange rate (.011) for us to compete with the high-tier economies of the eWorld like Serbia. On the bright side, it means that when we export we can reap pretty large profit margins.
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Post by Shnipe Sun Feb 13, 2011 9:22 pm

Then wages go to poodle and people leave >.<
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Post by Berritas Sun Feb 13, 2011 9:23 pm

:/ I just raised my wages lol....

Can you explain it more w/ examples...
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Post by Hekter Sun Feb 13, 2011 9:37 pm

In essence:

The 'goal' price in this case is .60 PHP. This is because ((1/(.60*.011))*2) = 303, which would pull us onto the top of the world in the best cost/food food prices in the world.

A person at 10 skill produces 50 Q1 food a day. His current wage is 20 PHP, or .4 a product. This only leaves .2 PHP per product in Grain, (6 grain in a Q1), or .033. In order to bring this to reasonable levels, we reduce the wage to 13 PHP, or .26 PHP a product, putting the needed grain price at roughly .056.

To accomplish this, we go to Grain, where a Skill 10 makes roughly 198 grain, or enough product for 33 food. Said person currently makes 21.50 PHP, or .108 PHP per grain. Thus, we have to cut that down significantly as well. Bringing it to 13 PHP takes it to .0656 per grain, which still falls a bit short, but there are taxes to be pulled in as well.

However, with 13 PHP, the Q1 food maker previously at 20 and now at 13 could recover 43 health a day, as opposed to 40.

The percentages, wages, prices, and etc. still need to be really worked on. This is just to illuminate the level of complexity we're going to be dealing with.

On a side note, it should be recognized that PHP is essentially free to the government for use, since it's no longer flowing out of the economy, it merely serves as a tool to flow around and around, so you could theoretically argue that we are literally spending and gaining nothing domestically under eSocialism, in which case we simply need to tool the economy to focus on more exports to make money and people buying PHP for G to pump back into the market.
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Post by Revilo X Mon Feb 14, 2011 2:06 am

uhm...
Just want to ask.

The computations are based on 0.011, aren't we supposed to raise it?
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Post by Aersidius Mon Feb 14, 2011 3:06 am

I'm cool with giving socialism a shot. I prefer to maximize exports when I can within my own companies.

With maxed taxes, the wage price won't mean much anyways. Workers will lose 25% of it immediately from income taxes and another 25% when they buy something. The daily food rations are what will keep citizens going.

The PHP/Gold focus should be less important. PHP will be a tool for the process, but only worth the amount of products or gold the government declares it to be worth. Gold is what our economy will gain by shutting off imports and increasing exports. Even if socialism is not implemented, we need our exports to be larger than our imports and enough food in reserve or markets for war consumption.

Many countries gain steady exchange rates by increasing the flow of goods into and out of their economy. We are weaker on the side of buying gold for PHP.

What if we reduced grain import rates to nothing, reduced income rates on food production, and shifted most of our workers to food production. Is there a chance other nations would buy our cheap food to fuel their military forces? Or, could we adjust import taxes higher to see if we could bring the PHP/gold rate up, if that's a focus?

The more companies and people willing to try this idea, the better chance of success.
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Post by Hekter Tue Feb 15, 2011 1:56 am

The problem that we're running into nowadays with that, the more I sat back and thought about it, is that the average player that's going to actually really notice food prices is self-supplying themselves with food. :\ Big tanks and militaries are essentially "communing it up", or simply using the "work every day in all your companies" feature.

Unfortunately, the more I look at the markets, the more it becomes apparent that more and more markets are imploding under the weight of oversupply.
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Post by Thedark_ace Tue Feb 15, 2011 5:38 pm

It's ridiculous, and a system which isn't accomplishable in eRepublik, and very backwards xD The older citizens get to do stuff, but the others have to 2-click and banter on IRC & forum. I know a lot of people who play the game for the economy alone, and many who wouldn't play with the economy.

And remember, there needs to be one weak chink, and the nation is f*cked for a month. With capitalism, you survive even if times are rough. Communism isn't the way to go.

Just my 2 cents...
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Post by Myung Kei Tue Feb 15, 2011 11:30 pm

Unfortunately, admin stupidity is driving Ecapitalism towards implosion with inflation, overproduction, and general calamity. At this point there is little left we can do to assure the safety of the civilian population and the stability of the government to veer through this overproduction of incompetence. I would rather not risk a currency collapse.

And it has been accomplished before, abet under regimes which did it for PTO reasons. Nevertheless, despite the ruthless political practices (which is not prevalent here at all), the economies were very efficient at maintaining a set currency value.
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Post by Erion Clow Reed Wed Feb 16, 2011 12:26 pm

I have these ideas for the support for eSocialism... but it might backfire at our economy.

1.)GOVERNMENT BONDS,LOTTERY or DONATIONS
Why don't we have "Government Bonds" or any thing on the same scheme.
It might get our treasury have more ePhp or gold, and at the same it me. it might affect the influx of the economical value of ePhp (thus raising the value of ePhp in the Market). instead of keeping ePhp to citizens why not give them to the government

Let say
Some Gov' agency will inform ePhill community that it was buying bonds worth 10,50,100,500 and 1000ePhp worth of bills and it will have 3-5% maturity in 2-3months,then all collected money will go to the treasury.

Or

Let's MoM (Ministry of Merriment..whoever you are) Have Form a Sweepstakes or a Lottery in just only 10ePhp per ticket. the winner might get 10Gold (or Higher depends on the total amount of ticket sales collected).

Or

Have a Patriotic Propaganda messaage about donating of ePhp or Gold. some highest donations (donators) will be awarded by the government for their "services for the time in need". like in order of sandugo.... or a "Tax Rebate"

2.)FUEL THE PROPAGANDA!!
i hate to say this, but ePhilippines was drowsy. (i admit it to myself). we need to have a "Moral Booster" to make eFilipinos Active. (Or at least lessen the impact/Number Departures or Quitting playing of eRepublik because of those stupid admins"

I Have Following Suggestions
*Revive the in-Games of MoM
*Give More Awards (Active ePhilippinos Award, Best Newspaper Article award...etc)
*More Wars (Cheap Wars)
*Having Interesting Newspaper Articles
*Having an eState Religion (Lol... here we go again!?)
*Have a Lottery (Try it)
*Increase Involvement

Note: I don't say it was 100% Effective and These Ideas might Needed Funds to Work >.<

Well these were only my suggestions and it was OPEN FOR CRITICISMS for Improvement ;)

Concered eFilipino and the Current Minister of Zealous Religions [Self Proclaimed] ;)
Erion Clow Reed












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Post by Berritas Wed Feb 16, 2011 5:28 pm

Erion has a point :/....but isn't that why people come to ePhilippines, to take some time off and relax....lol?

There needs to be a little more spice added or we will continue to lose citz and potentials.
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Post by sansae2 Thu Feb 17, 2011 5:55 am

Count me in.
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Post by Negosyo sa tao Mon Feb 28, 2011 4:18 am

I wanna see the bureaucracy behind this first. Razz
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Post by Jude Connors Wed Mar 30, 2011 12:35 am

What is the status on this?
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