The official unofficial guidelines on how to grow an economy.
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by Donovanator's Industries/Bank
Well I opened up a grain company and unfortunately it reminded me of how our only resources are a medium resource and not a high-resource area, and those with land skill-only people as myself (I should work on that for it was a stupid decision.) On my last article I talked about how we should lower import tax on iron, oil,AND diamond resources (I said iron and oil but I also meant diamonds not oil.)
Well I thought about how we should lower import tax on the resources that we don't have such as iron, diamonds, or oil,but what about the land industries we do have? We need to protect our assets so we need to protect the few land industries we do have. So increase import tax on the resources we do have so that way we can protect our industries from failing from foreign competition in such a tough time to grow an economy. I hope that Singapore will be the country that will protect its sparse industries by increasing import taxes.
So here are the OFFICIAL UNOFFICIAL TAX GUIDELINES for Singapore politicians that meet our problems of today in order to build a better tomorrow.
Official Unofficial Guidelines for a GROWING economy
~ Protect your country's industries from foreigners in order to employ so increase the import tax on the resources you do have.
~ Make sure that income tax is NEVER above import taxes on every industry (especially the manufacturing industries)
~ Do nothing but these tax changes and the economy should grow,but be warned do not think that inflation that will happen is just inflation in the end of itself but instead think of it as the economy has grown and much much better than it was before and will have a higher productivity and Singapore's citizens will have a much better average wealth.
Follow these two rules and the economy will be fine or even great and self-sustainable.
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This is the way we should be moving economically. Voted and Subscribed!
Simply magnificent.
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Truly Smart
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Greetings, Singaporeans!
It's good to see another small nation growing!
You have a similar problem as eSA: limited resources.
RBSA, eSouth Africa's central bank, would like to extend the hand of friendship to Singapore. We'd love to help you build up your economy and structure your economic policies (we've been doing so successfully for a while now), and especially, if you decide to have a central bank, help it learn to set up monetary policy (which is a very complicated process).
Just some suggestions on taxes:
1. Remember that high-production is 2x as productive as medium. Remember that maximum tariff rates are 99%. Meaning that, if labor costs are equal to Singapore's in the country importing, say, oil into Singapore, EVEN IF YOU HAVE A 99% TARIFF RATE, they will be able to have equal or cheaper prices (as they can charge 1/2 the price due to double productivity, and a more stable economy from a longer-running system, as Singapore is new).
2. My suggestion: focus on manufacturing. Raws can always be imported. Make your nation a tax haven, like in is in RL. Import raws, and export good, cheap, high-quality manufactured goods. It can be done without much difficulty, and won't create some massive trade imbalance if done properly.
3. Right now, your BIGGEST trade barrier is NOT tariffs: but exchange rates. Nobody will bother doing substantial business as long as your exchange market is so crazy and inefficient. To make it efficient, you need to get some SGD in the hands of speculators and investors, especially "angel investors" who will get liquidity up, and SGD moving. The market will move to a safe point of efficiency eventually.
Again, RBSA would be happy to help with any of this. Contact us with your government's/economy's needs, and we'll see how we can help.
1. Your exchange efficiency is about 50%. Compare that to, say, Malaysia, which has 92% efficiency, or Serbia, which has 94% efficiency. Your monetary market needs help.
2. Protecting your raw industries will just drive up the price of materials, and make it harder for Singapore to achieve export success on manufactured goods. Basic principles of international trade state that a nation should always engage in whatever field affords the greatest comparative advantage of trade: in Singapore's case, you can have cheaper goods in every industry if you do not protect low-efficiency industries. Focus on manufacturing, and you will have cheap goods, and be well-positioned to export all over the world.
3. Government can indeed cause lots of trouble. It can also help the free market achieve its goals. Singapore's RL government does this, it's eRepublik government should too.
1. I didn't say it would cause inflation. I said it was inefficient. It's not an issue of inflation, but of liquidity: low monetary market liquidity will hurt your economy in the long run, as people will be unable to freely transfer between GOLD and SGD, and therefore inhibiting long-run economic growth. The market may achieve some stability on its own, but it is a well-documented fact that loose market oversight by central banks, in eRepublik, maybe not in RL, but certainly in eRepublik, helps create monetary market stability.
2. Your currency isn't weak. And weak currencies don't necessarily encourage exporters: weakening currencies encourage exporters. Your currency is neither weakened nor strengthening: it is centralizing.
3. I'm not saying you shouldn't protect companies. I'm saying you shouldn't protect RAW companies. Why? Because your raw companies aren't efficient enough to compete, and you want to be able to produce goods for all your people, so you need to get maximum levels of raws and minimum prices: importation will achieve this better than protection. Naturally, you should protect your manufacturing companies, of course, I'm just saying it will be counter-productive to protect inefficient raw companies.
Oh and, also, this is a government institution of South Africa: we don't engage in business-operations, just financial and banking issues, and occasionally interventions where needed in the domestic South African market. No matter what your policies, "I" won't be selling there, because "I" don't engage in business activities.