We will spend your money for you as the state knows it better
Nagyzee
There has been more and more voices lately suggesting more government involvement in virtually everything and more government spending on virtually everything. The Federal Republic of South East Asia finally has its first openly socialist party but there are more and more voices inside for a shift into this direction in both big parties as well, especially in Federal Unity Party with Vikta's presidential platform also clearly showing several signs of this.
The common thing in most of these platforms is that they present only the more popular and easier side of such approaches. As I said there are more and more suggestions and programs on how we should spend more on this and that but usually very little on how we'd raise money to finance it. As money still doesn't grow on trees you can be quite sure that bigger government spending would be financed from taxing you heavier, dear citizen.
An analysis of the incomes and spending of the state
Currently daily tax income of the state is around 10 gold or exceeding it a bit which means that the state has a regular weekly income of around 70-75 golds. Apart from these the government can rely on some minor profits on monetary transactions, on printing MYR and on donations (congress gold donations foremost). The state usually receives around 70-90 gold from donations per month but the amount has been steadily decreasing as people were more willing to donate when the state was actually poor.
On the expenses part the biggest item is the cost of war games. These can cost up to 35-40 gold / week which will hopefully decrease to around 25-30 gold even if we stay in two war games as more countries enter said games. The state also loses money on the training companies continuously and the current social programs can eat quite a lot of money as well especially if they are run effectively and most new users that are in need are actually reached. Apart from that the state also has to build up reserves and can have high irregular expenses (an RW in Thailand can eat up quite a lot of money in the form of distribution of free weapons).
As for the future incomes of the state Vikta brought up the fact that as our population increases, tax income will increase as well and we can print more which will allow for programs requiring more extensive spending. But he didn't take into account that baby booms decrease the state's tax income per capita on the short to mid term. New citizens provide less tax income than old ones and to add to it they increase the state's social spendings per capita. This means that the state would have to rely on mostly printing to finance its extra spending which is a quite dangerous road to go and can lead to an inflation of the MYR and a sudden collapse of the government's income/spending structure if not being very careful. Alternatively taxes can be increased.
🙂
In the next part of my article I'll go through some of the fields where people have been asking for more government spending / involvement.
State owned companies
The idea of the state operating more companies usually comes up in connection with the military and surfaces in suggestions of the state running higher quality weapon companies or even iron mines abroad. I see several problems with this. Foremost the state would have to tie down quite a lot of capital. In return if the companies are managed well they'd provide some profit or alternatively cheaper weapons to the state and the chance to stockpile.
Profit rates are quite low lately and I question whether it makes sense to tie down say 90 gold to achieve a daily profit of 0.5 gold on a q3 weapon company with the help of a government officer working for free. Quite often state-run companies are a lot less effective than privately owned ones as an officer working for free is less motivated to make extensive profitability calculations, to micromanage the company and so on than an entrepreneur working for his own profit.
The other thing is that why should we use government funds here when private capital is also willing to invest in these kind of companies and supply the market with these items? Also as the market for higher quality weapons is still rather small in FRoSEA state owned companies could very easily kill private business in these sectors.
And lastly about stockpiling. My opinion is that it is mostly important for the biggest countries, smaller countries can easily buy an adequate amount of weapons on the world markets for a fair price in an emergency situation at any given time in a matter of minutes. Also stockpiling in a world suffering from overproduction and decreasing prices doesn't seem that smart as the later you buy the cheaper it is for you.
The idea of the state buying up land companies that were opened in medium resource regions could also be mentioned here but let's not go into that one as well now.
Military spending
An increased and continuous military spending makes more sense than the former in my opinion, especially if one has more grandiose plans (in a sense) about the country's future and wanting to follow a more aggressive/interventionist foreign policy. I'm not a supporter of this route but of funding the military only in emergency and other serious situations. But we can agree to disagree here. Instead I'd like to point out two things to those supporting increased military spending involving regular funding.
If say we have 100 soldiers in the country's military which is not an unlikely number for the future even with our current number of active citizens then providing them with one single q1 weapon / week will already cost 11-12 gold which is a quite high chunk of our weekly income. And one q1 weapon / week is rather pathetic for regular funding, right?
The other thing which I could have mentioned elsewhere as well is about the psychology of regular transfers from the state to the citizen. These transfers might build up a mindset of "I deserve this and that for free from the state" among citizens and might put us on a slippery slope where citizens are asking for more and more. A military unit asking for even more funding is not such hard to imagine, I think. I could bring up examples from other e-countries for this mindset, maybe later I'll indeed will.
Social policy
I've left the biggest, most important and most controversial topic for last. Of course it's the social policy. First let's see what the state guarantees to new citizens (and others in need):
- 100% sure employment even with low wellness
- Higher wages than the added value created by the work of these new citizens (this is essentially a money transfer)
- Gifting / feeding up users to 40 wellness if they screw up their wellness
- Providing moving tickets for relocation to Peninsular Malaysia
- Educating new users about how to fight and keep wellness high
- Finding mentors for new citizens
Of course some of these programs are still not running at 100% efficiency and especially the mentorship program is in an embryonic state. But this has nothing to do with the state's unwillingness to fund these programs but with the Social Office being understaffed and/or people being lazy sometimes.
😛In my opinion we have to improve a lot on the field of education and I find it of utmost importance to integrate new players into the community (as being part of that and of smaller groups is what ultimately keeps us playing) and to teach them how to fish rather than giving them even more fish.
I find it stupid to motivate newbies with money. Throwing money at them unconditionally or for doing this and that is just lame and a bit of virtual money won't keep most people in a game that otherwise bores them. A friendly mail is a lot more effective than a donation of 10 MYR (scheduled for 1-2 days before getting 5 gold anyhow). On the material front I think we have to concentrate on avoiding frustration (coming for example from not being able to join battles or from being regularly fired from one's job because of low wellness), and that's it. Lotteries on the other hand are somewhat fun even if it's free to take part in them so house raffles as suggested by the new socialist party could have my support.
🙂
And I've deliberately left my "favourite" suggestion for last. FRoSEA Socialist Party suggested gifting those who are above 40 wellness but are not willing to take part in the war games for some reason (like being a pacifist). I think this could be the epitome of pointless and stupid money spending. You know, the suggestion is about someone not willing to increase his/her wellness for free and instead relying on the government to do it from its funds. If this proposal ever goes through I'll do the following:
- Declare myself an anti-Stahanovist and lose my Hard Worker medals on the 30th days on purpose and *demand* from the state to compensate me for it
- Declare myself a light-eater or a fasting monk not eating food and *demand* from the state to gift me to compensate for my wellness loss.
You know, the state should support non-conventional approaches as well, not only the boring 'levelling'. Other similar suggestions are also welcome. We could milk the state for some major money.
🙂
Conclusions
I could summarize my arguments and viewpoints as: money doesn't grow on trees and the state is not a cow that can be milked to no end without consequences so with more extensive spending most probably comes higher redistribution through the state and heavier taxing and/or living up and risking our future with not saving up money. If you think that the state can spend your money better than yourself or if you think that you'd be one of the winners of higher redistribution then increased government spending is maybe just what you need. If not then maybe not. At least please think about it!
🙂
Thanks for taking your time to read this. I hope it was worth it.
Best regards,
Nagyzee
Minister of Finance and concerned citizen
Comments
vote, and yes it was worth to read it!!!
Great stuff, Nagyzee at his best! Usually I find something to criticize if an article is longer than 10 lines, but not here.
Everyone should read this and remember before voting in an election or on a law proposal.
Excellent points, Nagyzee. Voted!
nagyzee... astute points and certainly some real arguements based on numbers and facts. your article alone has proved my decision to be in dap as an excellent one. thanks for the financial lesson.
Well... Nagyzee, you spare me an article...
Just an amandment for the military topic in four verses:
First verse:
And then the professional army born. And there were joy and happines. The good fathers and mothers of the state supplied their beloved children with everything they can spare so the children grow in number and confidency. Amongst the emerged great heroes and idols mostly the ones who distribute the goods. The were fearsome yet mighty use high qualtity weapons of mass destruction and even dare to tank sometimes. And the fathers and mothers saw that it was good and created more units.
Second verse:
But evil lurks in the shadows alll time and there were some fathers and mothers who disagree to spent all money to those children. And the leaders of the children used discipline and dignity (wich they had by leading the glorious military) and take the places of the fathers and mothers only to secure the endless flow of supplies to the children. Some disagreed with that but were shouted down and titled saboteurs villains bastards etc.
Third verse:
The age of unity begins. All must unite under a common flag, a common government of all the parties, a great coalition because all kind of dissonace can harm the strenght. Yes by this time streght is teh magic word. Military streght, of course...
Fourth verse:
The Leaders lead their chosen to new dimensions. New wars to gain high regions or just for fun. The state becomes a military camp: all resources got but one aim: further supply the war-juggernaut, the army. All resistance should be oppressed by any means all non-army members should accept the role of a second rate citizen. A bright new world begins. So it beginned in ePakistan ages ago, then in eNorway, later in eRomania nowadays in eHungary and there are signs that the next country will be eUSA...or us?
Fragreg
Jack makes some great points. This is a social game which if "played" correctly would offer different "lifestyles" than just eat, work, train, fight, heal.
It gets very vanilla.
What Jack is trying to inject into the game is a community, something we are lacking here outside of a small core of members who interact.
While I am in RL against socialism, well most government anything for that matter, in this eWorld things are looked upon differently. I think we should not be so quick to condemn something that will provide for some more interesting times here.
i agree with the article, but disagree with title of the article.
it can be also like:
-Market will spend your money for you as the market knows it better
that issue is more DIALEKTIK as you pick only one side for using as title.
one more small "sentence"🙂
"If you think that the state can spend your money better than yourself "
yes, i think..loads of users are underexperienced..they need that kind of help...yes state is better owner as some users..definitely there are some users who are better than state but not this is the average...
on the other hand, we are a large country now. so as i see Vikta thinks that is so "equal"/simple to handle an economical situation in an e-country with 300 citizens as with 1400.
needs very good, experienced, faire state-experts.
..i think currently the low VAT is very important as a power for developement..we can start to use its prifit now, but i think it is better if we wait with this realizing "profit" attitude.
keep the low VAT..later, we will see..
wow, great article. I agree with some of it, and agree with some of it. I really hope we dont raise taxes.
I think it's depressing that most of these comments are ignoring Jack. I respect Jack a great deal, and though sometimes he is very hot-headed, he is never illogical or pointless. Nagyzee has been an effective and organized president, but it's indicative of disrespect when he disparages so carelessly. It's stifling community and diversity development, and because Nagyzee is so well-known, this article will most likely mold newer minds into an automatic, mindless distaste of a more roleplaying, less powergaming form of government ideal. New government styles and types are interesting and fun; what is essentially Nazygee bashing a original idea is rather disappointing.
Debate is refreshing. An impolite dismissal, however, is the start of groupthink.
"I respect Jack a great deal, and though sometimes he is very hot-headed"
Lol...and that my friend is why I'll never run for president again. 😉 Id end up getting us into an international war...again.
Good article! Nagyzee you are right!
Jack, sorry to say it but I also said that I'd probably never agree with your political ideals. Yes, I encouraged you to start up your socialist party. That doesn't mean that I won't criticize its aims.
You are a political opponent of mine. (Not enemy.) I don't see what's the problem with that. And I wrote down what I think honestly.
"Again, you can continue to work within the framework of the game dynamics and add nothing to the game except some leveling and clicking. The Socialist Party is adding a new dynamic not only on the political scope, but a social one as well."
I don't think that DAP's and FUP's policies revolve only around levelling. Don't you think you should prove it and not use it as a fact? I find the community aspect highly important and believe that's what keeps people in the game. How is that a levelling focused approach?
And I honestly despise your "gift those who don't take part in war games" idea as it would either be unfair or make the state spend shitloads of money. Would you like to see the state support all kinds of self-limiting approaches? Would the socialist party's government also fund "anti-Stahanovists" and "fasting monks" as well for example? Or would you discriminate between different RP strategies? You know I have nothing against people who deliberately don't fight even for wellness, but I think it's them who should spend more on their wellness because of that, not the state.
Nouveauk, I don't know where you got your conclusions of this article. Maybe you've also bought into what Jack said about it?
1. Disparages carelessly? I just wrote down what I think about extensive government spending. Is it not allowed? There is only one suggestion that I attack with more fervor as I honestly dislike it and find it stupid. Is it not allowed?
2. How is it stifling community and diversity development? Any political ideal that wants to survive has to survive criticism towards it. Why shouldn't one be allowed to criticize ideals one doesn't agree with? I'm all for developing the community aspect and I do think that open political debates also contribute to it.
3. Distaste towards more role-playing? How? I myself have nothing against role-playing. I just don't think it's a wise idea to make the government spend money on compensating those who limit themselves by choice.
Let's not be dishonest with each other shall we? You know perfectly well the weight of your words and the worth that they carry within the union.
By you coming out literally just days after we begin organizing and structuring the party and basically giving a disingenuous analysis, quite a few citizens who dont know any better are simply going to trick the kool-aid and go with the thinking,"Well if Nagyzee said it sucks, its gotta be true."
You dont want a real political opponent...you want an opponent that is chopped off at the knees so you can still manage them and handle them. So they are no real threat to your powergrasp.
You dont have to agree with the very basic platform we laid out, and I didnt expect it...but a small amount of time to continue to grow our party and really finely lay out our structure would have been decent. We have 8 members...EIGHT! We arent a threat to the DAP party, so why the preemptive attack?
And since nobody is bringing up the issue...the funds are there to support these programs. Going by your very numbers if we say that we make approximately 80 gold per week (factoring in money exchanges), and 40 gold goes to wargames...that still leaves us with 40 gold each week.
At best given gifting costs, to fund the program would require probably 5-10 gold per month! Gifting is done to citizens who respond to weekly "rollcalls" and their work activity is up to date.
The housing raffle simply requires a bi-weekly purchase of a q1 house to raffle off for free. In the past this was largely achieved via congressional gold donations.
What you fail to realize, that in a lot of cases, the more you offer your citizens the more they will give back to the nation.
Regardless, Im fairly done with this conversation with you. You'll have to find yourself a new political rival to distort their talking points.
You still don't understand that this article was not written just because FRoSEA Socialist Party was set up. It's a response to Vikta's presidential platform and other suggestions just as well that's why I didn't want to wait longer with it. It's not particularly directed against you and is not a preemptive attack from DAP towards FRoSEA Socialist Party.
"You dont want a real political opponent...you want an opponent that is chopped off at the knees so you can still manage them and handle them. So they are no real threat to your powergrasp."
lol, if you haven't noticed FUP is on a winning spree and they are taking another direction. Just look at Vikta's program! What he and FUP plans to do is a lot closer to your ideals than my ideals are. I don't see how moves in the direction you favour are without a chance, barely supported and "no threat to my powergrasp". As if I could manage others' political beliefs...
And also just because I have some influence should I keep quiet about my beliefs? I'm absolutely honest about that this article was not written with "killing" FRoSEA Socialist Party in mind. To be honest you are not even the main target of the article.
"Going by your very numbers if we say that we make approximately 80 gold per week (factoring in money exchanges), and 40 gold goes to wargames...that still leaves us with 40 gold each week."
No, it doesn't. We already have several social programs running that require money. The military does too even if right now we mostly have only irregular expenses on that. Building the hospital also eats money.
Honestly, I'd like to see a bit more transparency in the govt's treasury. I used your high end numbers, but if the cost of the wargames drops to 25 gold or so...where then does that extra money go?
You cant tell me that the meager social programs we are running right now, and military costs are 40 gold a week. That is ridiculous.
And Im not advocating we spend everything gained in a week's time...I just dont see the numbers adding up here. Your figures seem extremely high and incorrect.
The social programs are not that meagre. We gift/feed everyone up to 40 wellness we find and also move people to Peninsular Malaysia. Though I have to say that it doesn't eat quite enough money, efficiency should still be improved. Also the training companies cost quite some, too. Through losses and through stockpiling of q1 weapons. I'd say that is around 10 gold per week.
The military requires roughly zero in peace time as I said. It only costs money when we have an RW in Thailand or when Vikta sent some soldiers out on a foreign exercise.
And the other big money eater right now is the hospital project. It eats into the reserves, too. It costs around 50-60 gold / week. If it wasn't for the hospital project we'd probably have a positive weekly balance with a nice surplus.
Btw there are (incomplete) transaction logs of the Central Bank posted on the forum.
I read over your article and it sound good. But I am worried about some of the things "going down" in congress are worrying. Why is congress still issuing money? Minimum wage is already at 2 MYR. As well as 1 gold costing 70 MYR. We should really consider stop issuing money.
We issued money because the Central Bank is running out of it. If we don't print the MYR will deflate which is unwanted for now as we are dedicated to keep the exchange rate at 0.015 gold. I can guarantee you that the MYR won't be inflated.
Also if this MYR is not wanted in the economy for now it will serve as a reserve in the Central Bank.
Nagyzee, please don't call it "buying into" what Jack has said.
1. You wrote down what you think with a distinct lack of the usual political tact and respect you show others. Perhaps that is because you know the majority of Malaysians are on your side, and you feel like playing the "intelligent, witty politician" against a semi-formidable, but currently nonthreatening opponent. You might think Jack's idea is an utterly stupid idea, but I think you would not normally attack with such unbridled condescension if you felt for a moment that people would not blindly agree with you. You are clearly a good politician, but maybe you are too much like some real world politicians. Doing what is essentially a harsh political attack against a newly forming party to bolster naive public opinion about yourself is...I don't know, it seems too low for you.
2. "Any political ideal that wants to survive has to survive criticism towards it." Right, but you realize that when you speak, all of Malaysia cocks its ears. Your criticism against Jack's budding party is excessive; it's unneeded. The points you made were fine, but to type so much and to pull out so many guns on a tiny, unique political party makes you appear to some as if you're "stifling community." This is less of an "open political debate" than you giving your stance and everyone else lining up behind you.
3. "I just don't think it's a wise idea..." This sounds nicer than the tone in your article. This one attempts to be understanding, it qualifies without making absolutes, and it feels a lot friendlier than your article. Your article took an opportunity at the start to single out Jack’s party, and to a lesser extent, FUP. As it went on, it sounded more hostile, and I felt somewhat bothered that you would write so much over a growing party. It feels like purposeful division to stir up a bit of malcontent, and target a few individuals that you can easily quash because of your position of respect within Malaysia.
Nagyzee , you are a skilled writer and politician, and you have the energy to direct and help many people in Malaysia. I think that you are generally tolerant and accepting of new ideas, and you do your best to be polite. I believe that you have good intentions. But I think this article might spark some divisions between the Malaysians who completely trust you and the people who might feel the way that I do. It feels like you wanted to throw around your political weight by writing this article, because targeting a person or a party within your own country with this article is uncharacteristic of you. Maybe I overreact, and you genuinely did just want to write a pamphlet on the dangers of socialist ideas?
Great article, Dato Nagyzee.
Gentyle, you're right; they have both made excellent points... and they have both scrutinised each other's comments very efficiently too!
There is essentially no reason why anyone should hold back anything, but the only comments I would question are the ones that criticise just that: that one is mistaken by writing one's opinion.
Yes, Nagyzee is justified to criticise his political opponent, and Jack's concerns are valid too.
When opposition of two becomes friction, and friction then prompts a meltdown, who do we trust?
Do we debating about Nagyzees personal abilities or about how we imagine the FRoSEA's future?
Nouveauk, why can't you just believe me that this article was not written against FRoSEA Socialist Party in particular but against extensive government spending and some socialist ideas in general? Of course I've brought up examples for such suggestions from the socialist party as well, just like from Vikta's presidential platform, some other random places and for example some of these suggestions are from DAP's last primary debate. The timing of the article has nothing to do with the forming of the socialist party either. If anything I'd say it's more of a reaction on Vikta's presidential platform but this stuff has been building up inside me for a very long time and a few days before the presidential elections seemed like the perfect time to publish this.
And yes, I'm trying to throw around my political weight to garner support for the ideals and policies I favour and to slow down the shift towards a heavy spender state. But you are mistaken if you think I'm speaking from the winner's position.
Cap'n Choh, thank you, I think you are spot on. This is a political debate and it's better if we are honest and speak up and don't hold back what we really think. What I regret though that this has slid into personal issues as well. I think that was uncalled for.
more taxes means company closure...
we have to be competitive in order to have better price in gold on the world.
If we do this the quantity of taxes will be increased.
Easy way for obtain this is reduce minimum salary and reduce taxes for a certain period (20 days) in order to advertise this and obtain a moving of org into our country.
After that period of gain you can increase step by step VAT and income in order to increase taxes more faster.
I also think that we have to make a little decrease of MYR exchange rate to have a 0.012objective in order to be more competitive for raw selling.