The Situation in the Gifts Industry
Deus Ex
As I look out upon the marketplace early this morning, I see a lone seller with only a half dozen Q1 gifts. His price? Over 6 zar per piece.
It is a dire and desperate situation in the Gifts Industry, folks. It's a situation that's been growing worse and worse every day and now finally the industry is at rock bottom. I've personally not seen a single Gift for sale in weeks. My constituents have shared irritated tales of paying 4, 6, even 8 zar apiece for measely Q1 Gifts. Q2 Gifts, if they are even to be found, have even more outrageous pricing. The death of the Gift Industry has left us all in a terrible situation. OUr Wellness crumbles, making productivity economy-wide worsen, and our fledgling army is entirely without the reasonable means to improve wellness and combat effectiveness. The very core of the Erepublik World is built on increasing and maintaining wellness as it improve effectiveness in almost all tasks! And yet, here we are, with scarcely a gift in sight. This is a situation that is appalling, disastrous, and entirely unnacceptable. We need drastic change and we need it now. South Africa can't survive without its Gifts Industry.
Every effort has been made to try the free market, capitalist solution to the problem. At Ryan Dagari's suggestion, I personally put forward the final legislation lowering taxes in the Gifts Industry to almost non-existant levels. The Great Hope was that this would allow companies to be profitable enough at lower levels. Unfortunately, this was not the case and the situation did not change. In fact, it seems to have gotten even worse! Every effort has been made to have a free market solution to the issue but nothing has worked. Taxes cannot be lowered, it's not even possible. Letting the situation sit and "play out" as some critics have suggested is precisely what has been done over the past few months and the industry has only degraded more and more. Every logical capitalist solution has been tried, tested, and failed. It simply will not work, it's not the solution to the problem. This has been proven day after day, week after week, and the proof is in the current desperate outlook for the industry. Following the same lasse faire and low-tax course for yet another month (or two? or three?) WILL NOT WORK!
Clinging to the desperate hope that the "invisible hand" will fix all the problems in our economy is folly and narrow-minded. We simply need a different solution. Trying the same thing again and again, even though it has consistently failed in the past, is not the path to the future or to recovery. This is simple logic. Change is the ONLY solution and it is high time we had some.
So I present to you good people of South Africa the comprehensive plan that myself and Ryan Dagari have come up with. The first portion of the plan was proposed first by Ryan Dagari (of the Democratic Anarcho-Socialist Party). This is the nationalization of the entire Gifts Industry. This would be raising Income Taxes on Gifts to 99% making the few current Gift companies temporarily unprofitable. Workers will then be paid directly through Donation rather than via pay stubs as usual (eliminating any income tax on their earnings, giving them a higher net wage).The purpose behing to remove these exploiters and carpet baggers from the economy entirely. Their gross over charging for products must end! This move will then set the stage for government-sponsored companies to begin hiring co-op workers and producing Gifts on a low-profit model. This will require some selflessness on behalf of the workers, striving to create as much as possible and working chiefly for the good of the nation.
The second part of the plan is the companies themselves. This is where I, having founded and run the Bong Belly cooperative for so long, come in. I have proven, I think, that the cooperative model of business can be run highly successfully and is largely immune to the swings in the free market economy. The cheap Q3 food we produce at BB is proof enough of this. I think that the government should start or purchase, via Organizations, 2 companies to start with and they should closely follow the Bong Belly model for success. Just as in Bong Belly, the workers should be paid decent wages in addition to incentives such as free food and of course Gifts to keep wellness strong. This will make these workers very competitively priced at a lower cost to the Co-Ops and will help keep prices as low as possible. With sufficient supply of dedicated workers the industry can turn around very effectively.
As I said, this model will require some selflessness on the part of the workers, especially at first, as conditions will probably not be as optimal as described when the Co-Ops first start out. However, this model, if executed properly, will refound the Gifts Industry and allow for a strong supply of the precious commodity and can be returned to normalcy with time. It has even been endorsed by our resident Economics expert, minister of finance, and RBSA President: Hireshmont Vellos. Though he does remain hesitant about the temporary nationalization, as is undersandable in his position, he sees the strong possibility for success and is supportive of the cooperative model having seen teh stunning results of Bong Belly first hand.
I realize that there are natural opponents to nationalization. These seem to be the people who oppose it in entirety as destroying the free market. On the contrary, I believe I have shown that it will strengthen the free market in time. But there is a possibility that the legislation for nationalizing the industry will not pass due to individuals who are not willing to take the risk or who are too close-minded to consider sometihng outside of the ordinary "wait and see" policies which have given us this terrible situation in the first place. I will remind you that while Nationalization, as Ryan Dagari has proposed it, is optimal but not necessary for this plan to succeed. The government can still found or provide financing for successful gift co-ops without a nationalized industry. Even if the nationalization proposal does not pass it is absolutely imperative that the co-op funding ones do. Without them, we simply will not have a viable gifts industry in South Africa and this is a time when we need one the most.
So, post your comments here and on the Official South Africa Forum! We want to hear from you! Tell your congressmen that YOU support the Dagari-Deus Gifts Initiative!
DAS and BLF, the two parties of action, accountability, and democracy in South Africa.
Comments
http://z13.invisionfree.com/eSouthAfrica/index.php?showtopic=29&st=0entry294284
My Q2 gifts have never cost more than 4.5 ZAR and I am making a profit. Unfortunately, with the lack of workers, there isn't much production.
I bought all the Q1 gifts on behalf of Executive Outcomes early this morning there was quite a bit at 2 ZAR and even at 1.9 I think bought 2 from the 6 zar dude just to fill all the storage EO has.
So there is gifts out there and 20 new ones where added while I was buying I bought those ones too LOL you got to buy at the right time it seems. 🙂
Problem solving at it's best! We've tried everything else so logic dictates these actions. Voted(and to be voted)
People need to go work for these companies, Bakgat gifts needs workers, not to make a profit, but to supply the market.
"I think that the government should start or purchase,"
I'm already starting one, Deus. 😛
Great article. Let it be known that the Army needs gifts; that we only have a measly two Q1 ones, bought at freakishly high rates; and that I believe that unless the nationalization of gifts goes through, the Armed Forces will be unable to get the gifts it needs.
I am still against the nationalization idea, not only because it promotes a totalitarian ideology, but also because government is there to promote and support private business not to take it over. And secondly it will start a total shift to socialist ideology, which is a very undesirable situation for small business to be in. If you are a small business owner you will always be scared that government is going to out muscle you and not support you in tough times, very bad situation to create.
Instead of government trying to out muscle business, why don't government rather promote people to work in the service industry.
increase tax on diamonds more.
Here we go again with Red paranoia!!
It's not red paranoia, it is trying to support the industry instead of taking it over.
I support the cooperatives.... but see absolutely no point in the high income tax. It won't help anything except drop production even MORE.
Raising taxes on diamonds won't change the industry. They will just raise prices on the diamonds and make gift companies an even more undesirable sector.
then please try and find another solution, because Nationalizing the industry is not an option.
Erdwurm: I'm not too confident when it comes to cause and effect in economics but I do know that we've tried just about everything except state capitalism. If we could distribute the workforce more evenly that would be a better option. But we cannot!
Well if we cannot come to a consensus on the nationalization (the 99% Income Tax) portion of the plan then we need to at least support the idea of cooperatives and this investment should come from the state as all traditional private methods have failed.
I agree with Brendan that the fear of nationalization is more red paranoia but I do not wish to impress such a controversial system if there's not a high level of support. Let us continue this discussion because it is very good so far.
Co-operatives are a good idea. Many people owning the company they work for and providing their products at reasonable prices. The RBSA could always provide loans at low rates if they collectively lack the funds for these start-ups.
How many people could we get to work in the cooperatives, Comp? It would have to be a good sized undertaking, at least 10 people hopefully 20. Even if we were able to put together a 10-man Q1 cooperative for a short term solution until the Market comes back into sync I think the results would be amazing. But we need dedicated people willing to put aside their self interests and high profits for a time and work for the greater good of the country. I'm certain I can get a few BLF members to sign up but we need people from all over SA for a solution like this.
Though it may seem very un-needed for this plan, raising the taxes in the gift industry to make it impossible for other companies to compete is actually a good idea for the co-operative. The co-operative could be given state funding to allow it to pay the high wages for its employees, since the fact is that the co-operative is not very productive in terms of money at this time. It needs to accept donations left and right, and if we start running up the gift industry with the co-op, other companies will jump in and begin to take much of the co-op away. Iether we state fund this co-op to keep its wages at competitive salary's against diamonds and other gift companies, or we can just tax the gifts industry to the point we can keep other companies from coming in and making a uneeded mess of things.
I will not support government action which has the intend of forcing company owners to either lose their companies or go bankrupt.
They will do both with or without our action, so it doesn't really matter.
Ryan, where do you get this idea from?
My company's profits are probably the lowest in the gifts industry and yet I am still make a little. Why would the other companies, that charge considerably more, be going bankrupt?
Gift companies are making a profit, they might not be producing a lot of goods, but they are not going bankrupt.
Comp you really don't seem to understand the issue here. The few operating companies make little to no profit (you've said so yourself) and rebooting the sector is the best option for long term growth and profitability. Creating a co-op, especially when NOT nationalizing the Gifts Industry, will NOT send these companies to bankruptcy. Sitting and doing nothing as we have been most likely will.
As a capitalist aren't you supposed to live by the mantra, "Competition is Good for Business?" That's one I see thrown around a lot.
Nothing we have proposed will drive any company to bankruptcy, force owners to ,lose their businesses, or anything of the sort. There are two options being proposed here, two different paths we can take to save the gifts Industry. Your inability to understand the gravity of the situation is worrying.
if you lower the import tax other companies would be able to export and the gift problem would be resolved...instead of nacionalizing the entire sector create 1 or 2 state companies to produce the amount of goods needed and letting private companies to exist and compete for lower prices
Importing gifts has in the past lead to a large amount of our moeny just going overseas and I don't think the Domestic market is in the shape to compete with this. It was a necessity to allow imports for Grain but Gifts could become a very large problem and drain on the Zar if we have importers like we used to.
Dues, you fail to note that since I said that prices have increased significantly. You don't think this would have affected the companies profitability?
Ryan, how can I be wrong when I am actually doing it?
You keep claiming that we can't possibly make a profit when the fact that we are making a profit proves you wrong.
All our problems stems from the fact that in all industries, except diamonds, we have a lack of workers an can therefore not provide enough goods.
Your plan, as I understand it, is to force workers to work in companies you want them to. This might work but it will remove all economic freedom. Freedom is the main driving force behind FA and we will not support and plan that forces people to work where the government tells them to and for what the government thinks they should be paid.
No, anarcho-socialism lets the worker choose the workforce he wants to learn his skill into, we don't place them there. Deus said that we did somewhere, no idea why he said that... In the perfect nationalized society, people make more money than they ever would with a company, with balanced wages through-out the economy, allowing the player to work where he wants, not where the highest wage is.
This plan is suggesting to nationalize one sector, which has failed miserably. You say that it works, becouse you are actually in it, but tell me, what is your profit over loss? Do you really think you can produce and save this industry with your one sole company that is doing well? Most of the others, if they do not speak up for themselves, as I have noticed have their prices soaring high, and their wages very low. We can fix this, permanently, with anarcho-socialism.
Also, letting everyone know, I am talking about my mission, not Deus' branch of it. I want full nationalization of this, to ensure that this never happens again and that the co-op or whatever you want to call it gets moving smoothly and without any bumps.
If anything, this allows more choice, more freedom, allowing the worker to freely go about whatever sector he or she pleases, instead of mongering to one specific sector that offers the highest wages! This fixes all major economic issues we face now!
This will kill legitimate, good companies, like Bakgat, unless you have a plan to help them out too...sorry, couldn't be bothered to read all that (^) mess.
If you would read "the mess", which is the plan in its entirety, then you'd understand it better, lucien. How can you comment on something you haven't even read?
Lucien, I respect you, but just as I told the new guy who ran away, Do not talk about things you know nothing about. This meens anything you do not know about, but you still pretend like you do.
wtf...
I just typed a comment then I hit backspace and it sent me back, what the hell I didnt even click outside of the box
I hate it when that happens .
Please, Deus and Dagari, while the issue has already been resolved and my questions answered, and as such are not in need of answeres -now-... please, in the future, try to actually answer the honest and legitimate questions I or anyone else pose to you before you dare to assume that, just because some of us have a tendency to auto-skip over bitchy drivvel, that I don't have a clue as to what I'm questioning.
............
so your saying I am not answering anyone's questions or comments here? My large commend and previous ones are all just mindless 'dribble' that has nothing to do with this article or its comments?
If you say so, then prove it.
Easy. I asked a question, not wanting to sort through the bickering above, and you called me ignorant without answering the question. Given the fact that the question was somewhat answered before, I'm surprised you didn't even respond with your usual sarcasm.
Or did you mean the drivvel part, because I never said you weren't answering other people's questions.
I suppose I can understand how someone like you would think my complaining about you not answering a question I posed, and instead responding in a condescending manner...would somehow constitute an arguement about you not responding to anyone's questions about anything anywhere in these comments. Hell, I would have even settled for meaningless drivvel as an answer; at least it would have been an answer.
On a related note, when have I ever said anything about anything in which I was not a professional (or didn't have some prior knowledge) without also adding words along the lines of "I think", "my belief is", or "I'm not an expert, but", or otherwise not including some sort of statement saying that I'm not going off anything more than my own logic and reasoning?
Disclaimers ftw, sir. Maybe you should use some, yourself.
Did you click /inside/ the box, though? Sometimes it needs that, for some reason...that happens to me sometimes, and it's seriously irritating...
I buy all diamonds of your country. right now I dont need more but I'll need! You have good prices and I like it!
Yes, I did, several times, and I even saw the little verticle line flashing.
Odd,very odd indeed. Well, since I'm no tech expert, I think I'll stop spamming the article...