It's about the Economy Stupid.
Day 774, 02:37
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Published in Japan 
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by
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by no1kevlin
The eJapanese economy under Dokomo.
Many citizens of eJapan are naturally unhappy at the retreat of Kyushu and the turning on friends of old. Much evidence, opinion and debate has been presented on how Dokomo and Godzilla have been complicit in these incidents and how they favor eAmerica over the well-being of eJapan.
One of the many counter-thrusts offered in distraction of these arguments is the declaration and acknowledgment that the economy has shown a marked improvement since the election of Dokomo.
But, is this true?
On assuming the presidency the much needed step of printing JPY was taken. This allowed a replenishment of JPY lost by inactive/dead players, capped of of the value of JPY at 0.034, allowed incoming company owners to turn their gold into wages and for the various refugee groups to turn their old currency into JPY at a better rate. It also surved the purpose of replenishing the funds of the National Bank of Japan after the funds had been taken.
Unfortunately and despite getting the funds in the National Bank returned - The administration kept printing money as they wished to drive the price of Yen even lower. The destruction of this national balance has allowed an amazing short-term bonus of gold to be returned to the state. Godzilla has thus been able to receive plaudits for this distribution of revenues without many realizing that the continuation of such largesse is not sustainable.
Whilst in the company sector the companies were finding that the devaluation of their eJapanese sales was impinging on their ability to import raw materials into resource poor eJapan. The companies were able to receive temporary alleviation by the influx of new workers into eJapan which, whilst causing a short-term and minor loss in productivity enabled them to cut wages and offer small reductions in sale prices.
This situation coupled with a surprising lack of intervention to foreign penetration of markets continued till the signal point of the Dokomo administration - The Kyushu retreat!
This incident was to plunge the economy into chaos. The initial (and not so temporary) loss of the companies in Kyushu caused an obvious contraction and small price increase on the goods market, A tiny lift in the pitiful wages on offer as companied competed to attract the higher skilled workers from Kyushu and a small boost in moving ticket sales as we repatriated our lost friends.
Another outcome of this decision was the impact felt across the region as Eden and Phoenix went to war. Gun prices started to rise with the increased demand, eJapan lost the ability to import Iron onto its own markets, The JIN was sent to America with minimal losses in producitivity and minimal increase in ticket and weapon sales.
The retreat also triggered the RW's on the Korean peninsula which resulted in the loss of some high quality companies and their goods to eJapan, the displacment of some workers and furthur losses to the treasury.
And so we arrived at a low point!
# The highest wages on the market were skill 7 manufacturing at 18JPY.
# We had no Q5 Food or Weapons and were being charged nearly 200% and 100% over world market price if we wanted them.
# After paying more from our reduced wages for essentials we were to find the value of our savings furthur reduced by the goverment taking the value of yen needed to purchase one gold from 30.35JPY to 33.5JPY!
# So, less chance of owning a company or even a house.
# Not to mention that the option of us doing anything other then basic training was now highly comprimised. We could of course turn to the goverment to help fund us in this regard - They however have thrown away or ability to raise funding through JPY sales by mass printing runs to the extent that 15,000JPY are sitting, moribund on the market.
The goverment plan to deal with this? - Deny it! its not happening! Godzilla is good for the economy! (tl:dr No plan!)
Many citizens of eJapan are naturally unhappy at the retreat of Kyushu and the turning on friends of old. Much evidence, opinion and debate has been presented on how Dokomo and Godzilla have been complicit in these incidents and how they favor eAmerica over the well-being of eJapan.
One of the many counter-thrusts offered in distraction of these arguments is the declaration and acknowledgment that the economy has shown a marked improvement since the election of Dokomo.
But, is this true?
On assuming the presidency the much needed step of printing JPY was taken. This allowed a replenishment of JPY lost by inactive/dead players, capped of of the value of JPY at 0.034, allowed incoming company owners to turn their gold into wages and for the various refugee groups to turn their old currency into JPY at a better rate. It also surved the purpose of replenishing the funds of the National Bank of Japan after the funds had been taken.
Unfortunately and despite getting the funds in the National Bank returned - The administration kept printing money as they wished to drive the price of Yen even lower. The destruction of this national balance has allowed an amazing short-term bonus of gold to be returned to the state. Godzilla has thus been able to receive plaudits for this distribution of revenues without many realizing that the continuation of such largesse is not sustainable.
Whilst in the company sector the companies were finding that the devaluation of their eJapanese sales was impinging on their ability to import raw materials into resource poor eJapan. The companies were able to receive temporary alleviation by the influx of new workers into eJapan which, whilst causing a short-term and minor loss in productivity enabled them to cut wages and offer small reductions in sale prices.
This situation coupled with a surprising lack of intervention to foreign penetration of markets continued till the signal point of the Dokomo administration - The Kyushu retreat!
This incident was to plunge the economy into chaos. The initial (and not so temporary) loss of the companies in Kyushu caused an obvious contraction and small price increase on the goods market, A tiny lift in the pitiful wages on offer as companied competed to attract the higher skilled workers from Kyushu and a small boost in moving ticket sales as we repatriated our lost friends.
Another outcome of this decision was the impact felt across the region as Eden and Phoenix went to war. Gun prices started to rise with the increased demand, eJapan lost the ability to import Iron onto its own markets, The JIN was sent to America with minimal losses in producitivity and minimal increase in ticket and weapon sales.
The retreat also triggered the RW's on the Korean peninsula which resulted in the loss of some high quality companies and their goods to eJapan, the displacment of some workers and furthur losses to the treasury.
And so we arrived at a low point!
# The highest wages on the market were skill 7 manufacturing at 18JPY.
# We had no Q5 Food or Weapons and were being charged nearly 200% and 100% over world market price if we wanted them.
# After paying more from our reduced wages for essentials we were to find the value of our savings furthur reduced by the goverment taking the value of yen needed to purchase one gold from 30.35JPY to 33.5JPY!
# So, less chance of owning a company or even a house.
# Not to mention that the option of us doing anything other then basic training was now highly comprimised. We could of course turn to the goverment to help fund us in this regard - They however have thrown away or ability to raise funding through JPY sales by mass printing runs to the extent that 15,000JPY are sitting, moribund on the market.
The goverment plan to deal with this? - Deny it! its not happening! Godzilla is good for the economy! (tl:dr No plan!)
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1st
You have shown, time and again, that you have zero knowledge whatsoever of economics. Please stop embarrassing yourself.
Finnaly someone is able to bring the many worrying and negative aspects of the economy together in one thread/article.
# The highest wages on the market were skill 7 manufacturing at 18JPY.
# We had no Q5 Food or Weapons and were being charged nearly 200% and 100% over world market price if we wanted them.
# After paying more from our reduced wages for essentials we were to find the value of our savings furthur reduced by the goverment taking the value of yen needed to purchase one gold from 30.35JPY to 33.5JPY!
# So, less chance of owning a company or even a house.
Sounds like more of a problem with the business owners of Japan caring more about their own profits than benefiting the nation as a whole. If more owners operated their companies like Alfagrem then you wouldn't even be publishing those points, but alas, most people don't know how to provide proper wages (including adjusting wages to meet the new Yen value) so they just match the market level or beat it by 0.01 JPY and then offer prices at 0.01 less than the other guy.
# Not to mention that the option of us doing anything other then basic training was now highly comprimised. We could of course turn to the goverment to help fund us in this regard - They however have thrown away or ability to raise funding through JPY sales by mass printing runs to the extent that 15,000JPY are sitting, moribund on the market.
Vorph updates the monetary market offer every single day, and one was done right around the time of this article. I fail to see why 15,000 sitting on the market is a bad thing, but I do find it bad that the bank only has 15,000 JPY left in it.
Suggesting the government offer gold to citizens for advanced training seems absurd, as to provide Napoleon to 10 citizens for a week would cost the government 84 gold, and in a situation like that it would actually be better to train up lower strength citizens faster so they are capable of ranking up faster at the same time, but those same citizens are more prone to desertion or multi-account bans.
Many of the points you raise have little or nothing to do with the governments economic prowess - more the law of supply and demand.
another crap article.
"Many of the points you raise have little or nothing to do with the governments economic prowess - more the law of supply and demand."
That's not true - The goverments main economic movement was the lowering of the exchange rate. This singular intervention in the economy is detrimental to the eJapanese by its very nature.
It's now 'better' to turn Gold into Yen then vice versa. So the main holders of Yen, The citizens working in eJapan are less well-off in this new world without receiving the benifits of better wages or cheaper prices (as the Gov intervenes only on the markets to concede the advantage without balancing out its actions).
They are in fact worse off as the spread of prices now allows foreign competition into the goods market a process that goes unchallenged as the previous tax levels lost their effectiveness without the devaluation of Yen.
And company owners will 'gouge' as some are eJapan based and not eJapanese owned. A percentage that increased after the Korean regions were liberated/lost.
Once a government decides to intervene in the monetary market it sets off a chain of events which require and compel it to intervene elsewhere to stabilize wages and prices.........it didn't.
As for training, I think the point was that we cannot get as much gold for our JPY as we could before, therefore we are not able to train at a higher intensity with as much frequency as we could do beforehand.
"The retreat also triggered the RW's on the Korean peninsula which resulted in the loss of some high quality companies and their goods to eJapan, the displacment of some workers and furthur losses to the treasury."
Ahem I remember you, no1kevlin, to be tanking red in some of those RW's, when ordered to fight green by the administration. So really you can only blame yourself, rather than the government for that!
Drago, that is an rather unfair generalisation. If my companies are offering price at 0.01 more than the other guy, it is not because I don't know how to model my wages, it is because I can't afford it. As most of the our economy are Q1 and Q2 companies selling at the local market, the wages they can afford are pretty similar, that's why you don't see companies offering 10-20% most than the other guy, unless they are higher Q companies.
I also fought red in those RW's (due to some confusion about the orders) and actually ended up putting some of my companies into Theocrat stagnation 🙁
but if we're doing that dance..........
"We wouldn't have lost em if you didn't fight red"
"the RW's wouldn't of happened if you didn't retreat Kyushu"
"We wouldn't of retreated Kyushu if they gave away their high Iron"
"They wouldn't have the high iron if Eden hadn't been there first"
"but Eden was attacked by PEACE"
"PEACE was attacked by Atlantis"
etc...etc...
"Admin didn't have to invent the game"
Stopped reading at "no1kevlin". I'm surprised more didn't. I have long since stopped reading all of the drivel he posts.
At first I thought he forgot a comma, but now I understand that he is referring to himself as the "Economy Stupid".
Good one, no1kevlin. Your comedy never fails to deliver.
@Alfagrem:"The goverments main economic movement was the lowering of the exchange rate. This singular intervention in the economy is detrimental to the eJapanese by its very nature."
So you think the 0.035g/JPY rate was justified? Personally, I thought it was silly to have one of the strongest currencies in the world given our relatively weak economy (compared to more populace countries, particularly ones with high iron).
Are you just thinking short term here or just about your own stockpiled wealth? I am interested to hear why you think it is detrimental for eJapan to aim for a more reasonable exchange rate of 0.03g/JPY or even 0.025g/JPY? I think MoF Vorph has done a great job of GRADUALLY lowered the rate through supply and demand pressures rather than simply moving the bank rate to his target, as his predecessors were wont to do.
@Phelps - The question isn't about what the rate should be but as to why it was moved and how it was managed.
The conservative, free-market policy handed the incumbent the rate of 0.035G and therefore bequethed a great advantage to what we were promised was to be a more interventionist policy.
This advantage was turned into gold but the administration failed to deal with the effects this reduction produced on the company/goods sector & also to re-invest this stockpile into eJapan.
As for my personal horde of gold - This defect worked in my favor as I was able to come to eJapan with my gold and foreign currencies and purchase into the eJapanese markets at favorable rates.
The fact that I didn't choose to offer slave wages and gouge was purely personal preference but that avenue was very much open to me should I not of given a fig.
It's like Alfagrem is trying to succeed as a Fortune 500 company in Zimbabwe. What you want does not necessarily fit what the eJapan is capable of, dude.
^My org
The important thing is - IT'S NOT TOO LATE to actual turn this from a 'bubble' into a long-term revenue stream that will be able to fund on-going and future programs.
TL😉R
I'll skip this one and let more capable people to prove your idiocy this time.
I did not mean to imply that you, personally, were looking after your own stockpiled wealth. The people hardest hit are the business owners with stockpiled JPY for wages and their concerns only exist for the short term. That is why I originally opposed the idea when it came up during Oraizan's administration and the plan of action was to use the Bank to set the floor of the Monetary Market.
Like you said, your personal stockpile of gold means that this lower rate works in your favor. That is the point, exactly. We are looking to attract foreign investment - exports, if you will. The alternative is becoming an introvert like eRussia where foreigners come to work but spend their money with orgs placed elsewhere.
"It's like Alfagrem is trying to succeed as a Fortune 500 company in Zimbabwe. What you want does not necessarily fit what the eJapan is capable of, dude."
Well, eJapan is not Zimbabwe, and erep is not real life. Japan had one of the lowest wage in the world and it was a significant advantage for many foreign investor to open business here. And if Alfa want to half the wages he is offering and then sell everything onto the world market, he will probably still offer one of the highest wages for any company in Japan, and he can definitely earn quiet a lot of money with that setup if he choose to.
YUIcorp, your theory does not follow the laws of supply and demand.
Wages were depressed because of low demand, specifically low foreign demand. Relying solely on domestic demand emphasizes the disadvantages of our population, which is small and, for the most part, unwell.
If foreigners were setting up shop to exploit our low wages then wages would have to up with demand for workers. For RL comparisons look to China's and India's growing middle class.
Every time some undercuts the bank on the MM, we have a chance of showing up as the lowest-priced goods on ereptools. As a gun maker, I have experienced this several times during Vorph's tenure as MoF. I benefited, along with all other business owners, from a surge in demand in good while the Treasury benefits from a surge of demand in JPY.
The foreign export market we want (Foreigners buying JPY and exporting through orgs) was more prevalent under the 0.035 rate then it is now!
The rate is not what effects that kind of action but the conditions of the labour and production markets.
The movement away from 0.035G disrupted these markets leading to the situation that YUIcorp describes where eJapan becomes a source of slave labour for foreigners not a place of investment.
"If foreigners were setting up shop to exploit our low wages then wages would have to up with demand for workers."
That would be true if it were not for the concurrent failure of other companies who either cut wages to late, couldn't find a market or were just badly planned (or lost in eSK) releasing their workers into the market.
"YUIcorp, your theory does not follow the laws of supply and demand."
Ehhh... no. I am not stating a theory, it is a fact, that we hit a terrible phrase some time ago that wages was less than 1 skill/JPY, and this WAS a one of our selling point that despite our lack of resources, we are able to make anything cheaper than anyone. This situation changes with the gun boom, that see gun price increase by 40+%, and the subsequence increase in manu wages.
Q5 guns were double the world price when I entered that market and the eJapanese company (from eSweden) was gouging out a huge profit.
I just offered employees a sensible wage based on their production of weaponry at a sensible price whilst ignoring my competitors pleas for a 'price-fix'.
I think Alfagrem is arguing that instead of returning to the .035 slow and steady method we should go even further towards state owned wage-floor setting companies. I agree, and would like to see that happen in my last term.
I'm saying that, that is one of the options as is going back to 0.035 / non-intervention.
You either go all-in or not at all or you end up with the situation as Kevlin has laid out for us.
@YUIcor: "Ehhh... no. I am not stating a theory, it is a fact, that we hit a terrible phrase some time ago that wages was less than 1 skill/JPY, and this WAS a one of our selling point that despite our lack of resources, we are able to make anything cheaper than anyone. This situation changes with the gun boom, that see gun price increase by 40+%, and the subsequence increase in manu wages."
Again you are totally off-base. First, I was there, employing workers for sub 1JPY/skill wages. It was due to a lack of employers (job supply). I had maybe 6-7 Q1 weapon competitors compared to almost 20 today. eJapan was nowhere near the top of the eReptools price lists. Mid-to-high quality guns and food were laughably overpriced on the global market.
The 40% increase in weapon price is due to global demand driving the market price from 0.087g to 0.1g in conjunction with the exchange rate going from 0.034g/JPY tp 0.031g/JPY.
YUIcorp is right in that we could produce far cheaper then world markets in the mid to high quality range. That we did not do so is more a reflection on the CEO's of some companies either gouging eJapan or trying to survive in an unstable market as well as the belated loss of Korean based companies.
and the talk on skill 0 to 3 wage prices in generally a question of micro-economics due to the speed with which a worker moves from one end of the scale to the other.
ITT: People majoring in marketing wave their e-peens around
Marketing?
Yes marketing. You know, the major that all the failing accounting and finance majors switch too 😉
'Sounds like more of a problem with the business owners of Japan caring more about their own profits than benefiting the nation as a whole. If more owners operated their companies like Alfagrem then you wouldn't even be publishing those points, but alas, most people don't know how to provide proper wages (including adjusting wages to meet the new Yen value) so they just match the market level or beat it by 0.01 JPY and then offer prices at 0.01 less than the other guy.'
If you can enlighten us, I'd be more than happy to hear it, because even at these pitiful wages, I still can't profit more than 2 JPY a day, so I really don't see how I can pay them more.
I'm surprised no one has pointed out that no1kevlin screwed up the quote in the title.
Probably haven't because it'd be a troll move and adds nothing to the conversation.
Well, good thing I couldn't care less about what no1kevlin has to say, eh, Alfagrem?
this article is crap
Isn't this the guy who got caught exploiting and promptly abandoned his party?
TLDR: scumbag cheater
That's the guy who fought in favor of the resistance wars too, then complain when thr regions in question are lost. That's just plain rich.
when are you going to stop bashing dokomo/godzilla and start posting something useful? perhaps some better ideas, suggestions. what are your plans?
is this really how you want to bring down dokomo and win your cp medal? by bashing the opposition?
@YUIcorp: "It is interesting that you brought up increase in global demand as a factor to our increase in price, and at the same time, you tried to deny our price was amongst the lowest in the world."
A rising tide lifts all boats.
Adam Reese - Least he has something to say that might actually help eJapan.
'Article crap' brigade - Dokomo's article in response : http://www.erepublik.com/en/article/a-smarter-economy--1122520/1/20" target="_blank">http://www.erepublik.com/en/article/a-sm[..]/1/20
Yes, but why should anyone listen to a cheating traitor, Alfagrem? Hmm?
Why should anyone respond to a troll?.......Good manners!?
Maybe I should stop responding to you, then, Alfagrem, since that would just be feeding a troll.
That would be cool - Perhaps then you might actually suceed in making a post that addresses the substance of the article?
Would've only taken you 8 posts to do so.
Why should I listen to an article filled with political bias, posted by a "traitorous dog"?