A Suggestion for a New Economy System

[Cerce]

((This is an excerpt of a possible economic system that I proposed IC on another server. It was rejected, but a loud minority supported the theory. I have editted it to help with the integration in this specific server.))

It has been generally agreed upon that the economy of the various nations and societies within this great realm are of little economic strength. Money supply is unlimited to those that vote on a constant basis, and as such goldmean little to those that have already established themselves within a nation, or basically anyone with enough time to collect enough money from the various voters who have 'spawned' said money.

The original hypothesis that the buying of locks, kiwiship liscences, and the like would provide some use to those of excessive monetary status has been broken by the fact that, for some people and nations, there is simply no incentive to buy ships or locks, and therefore no need to spend. As a result, the currency of gold has become all but useless within the realm of which we live in. Nations are not in charge of their own currency, and cannot control the current economic crisis of constantly increasing inflation due to the overabundance of money and its increasing irrelevance to everyday society.

A theory that I wish to put forth is as such: That the unlimited supply of money must be capped at some point in time, presumably sooner rather than later. This would cause the ever expanding inflation of consumer and capital goods to stop, and would encourage a steady circulation of the economy in order to stabilize prices and wages. Jobs would become ever more prevalent, instead of extinct and nonexistent as they currently are. The limited supply of money would encourage competition and the founding of greater, more influential companies and organizations, which would in turn employ various workers to maximize product output and monetary input.

Should an economic 'cap' not be put in place, the current trend of hoarding money only to spend it on such things as locks and diamonds would continue, putting little effect on the overall economy. The current economic structure can support far more than just this, as I am sure the vast majority of readers would agree. Jobs would continue to dwindle into nonexistence, and money would have increasingly less value.

Therefore, I ask that the 'spawning' of money for the voting of this server be removed, and that the current level of gold, both in the banks and in the land, be maintained. In order to keep the economy alive in the event of mass buying of locks or other 'non-refundable' expenses, the money that nations and individuals spend on such plots would then be sent to the neutral territory of the inn and kiwiship dock, as well as the various 'spawns' that inhabit the land. This money would then be spent by the many (NPC) merchants of the land to acquire new wares to sell, which would then be used by nations to acquire other wares to sell, and the money received for selling these wares would then be used to locks, kiwiship liscences, and - in Age II - land plots, which would in turn come back to the neutral merchants. Even should locks never again be bought by any nation whatsoever, this new economic process of 'capping' the current amount of crowns would ensure a lively multinational economy, and encourage inter-continental trade and the exchanging of goods and services on a global scale.

For example: Nation A spends 100 of its 200 crowns on land. Merchants receive 100 crowns and spends this money to buy equipment from nation B. Nation A, with the new land, buys tools with its leftover 100 crowns from the merchants to harvest and cultivate its new land, as well as build on it. Nation B again sells equipment to the merchants, which have sold all the land that they originally bought from Nation B to Nation A. Wishing to make a profit, Nation A sells wares at a lower cost than the merchants, but at greater quantities. The merchants, having less quantities, cannot lower its prices in competition. With this new profit, Nation A can purchase more land and expand - which then goes to the merchants. Now that the merchants have more money, they can lower prices, and Nation B proceeds to make a profit by selling equipment to the merchants instead of the less return they would get from buying and selling from Nation A. Eventually, prices will stabilize, with nations offering lower or higher prices relative to their distance to the merchants and the current prices therein, until such a time where more land is bought. At such a time, the money from the bought land would allow the merchants to lower selling prices and raise buying prices, and the economy would again go through the process of finding its equilibrium. For those that would not wish to enter directly into trading, and instead wish to perform services for money, they could effectively work for nation A or B. ((Should the idea of moving merchants come into play, the effect of the distance between nations and the inn would be neglegible))

With this new economic process, trade embargo would also have a far greater impact with the limited money available. For example: Nation A refuses to trade with or employ the service-oriented Nation C. Nation B is now the only nation that will employ Nation C, and therefore has a monopoly over them, forcing Nation C to adhere to anything imposed on them. On the other hand, Nation A now has a severely reduced workforce, and as a result produces less than Nation B. Regardless of the political outcome, Nation B would win economically. This is but one of the many outcomes of a trade embargo - many can have positive impacts for more than one side.

With these new prospects in mind, I implore any and all leaders to implement a 'cap' on the economy, and help the entire region become a more monetarily sound place.

((ALTHOUGH THIS IS NOT ME ADVERTISING, I must state that I originally came up with this idea from Nations@War. Unless you enjoy PvP more than RP, don't go there - however, there are still quite the number of good stories that happen there. The reason I state this is because I originally posted it there, and I feel that I should give it the due respect that it has earned due to their influence on this matter))