Rearden Economic Report January 18th - Expenditures and Budgeting

Day 425, 19:13 • Published in Canada Canada • by Alexander Rearden

Though I had planned to do a history lesson for this edition, I decided it would be wiser to tackle a rising sentiment about fiscal responsibility under my term as MoF and the seemingly huge expenditures.

In particular to address this: "24K was released to The National Bank of Canada to fund the Ministry of industries and the companies in the Shinra Electric Power Company, 12K was released to Canadian National Defense for the Military budget for Janruary. 10K was spent on Q1 hospitals (to add more funding to Shinra and Ministry of Industries). 4K was donated to CSIS (intelligence), 2K was donated to MeSu (medical supply) squad for CAF."

Shinra received 30K on October 20th (there about anyway), this was shortly after we were given Shinra from Mr. Sutler. That 30K paid for 2 months of CAF, 3 months of MoI, the France Expeditionary Force (the volunteer group in France before CAF's formal entrance), funded the construction and Maintenance of Canadian Defense Systems as well as provided a CAD cushion for the NBC. There was a few K CAD in MoI, CND and NHS when I took over so around 38K between all areas of the government shortly after V1 launch.

This amount, at least on the economic end, lasted for MONTHS of expenditures, bare this in mind when reviewing the last government budget.

The latest MoI/Shinra budget of 34K (what Jaffle has oft quoted) should last 3 months+ at the current rate of expenditures, actually it should last even longer since Mesther has done a better job than I in attempting to curb government spending. Which comes out to approximately 375CAD a day (should it last 3 months) which spread out over 9 companies (those listed in Jaffle's "your taxes at waste" article and the hospital builder) comes out to 41CAD or roughly 1 gold a day per company. Which in my experience are reasonable expenditures for any company owner especially those hiring high skill employees (Q4 hospitals, Q4 weapons, Q1 weapons and Q5 defense).

So yes, a lot of money was put into these companies but that isn't the whole story, this is months worth of funding to be managed very carefully with ever the goal of balancing State demand and economic growth.

Furthermore, I would like to offer a formal apology to the people of Canada for the worst and most anti-free market move of my terms as MoF, listing Q1 food on the market below market price. It was a political move not an economic one and for that I am sorry and it will not happen again should I return as MoF (which I hope to do in the next term with Mesther as my deputy) Canadian Wheat Board will return to its originally intended role as the emergency food supply should Canada be invaded and all resources put towards weapons/gifts production.

If you have any questions are comments post away 🙂