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Economics & Effective Damage Output




 
Howdy Japan,
 
My name is Pillow and I was a ghost vMoF (meaning I do not actually play the game but I have helped Asuka in establishing a system of optimally managing state firms, money market policy, and minor product subsidization). Asuka and I were dismissed for inactivity (which is a bit far fetched considering that I have been working on a spreadsheet and keeping job offers posted at profitable levels) and for the fact that I did not subscribe to the Prime Minister’s flawed economic ideals.
 
My first task as vMoF was to clear out the companies that BKThunder had grossly mismanaged and over hired in. For example, several companies had fifty workers going for market wage.
 
        “What the f***” was my initial reaction.
 
As an accountant in the real world, nothing irritates me more than inefficiency. I re-established job offers, fired unprofitable workers and worked on establishing a profitable state-owned enterprise. It would have offered Japanese citizens high wages whilst taking advantage of the fact that the state gets a slight discount on wages due to the fact that 12% of your income will ultimately end up in its coffers. Having done that, I turned my eyes towards the monetary market:
 
This wasn’t too bad except finding a gold offer post. The state should not bleed gold when at all possible. Why? Gold is infinitely more valuable than local currency and can be exchanged for just about anything: other local currencies, food, gifts, guns, anything! What can Japanese Yen be used for if Japan is wiped? Nothing. Nada. Zip. Zilch.
 
Japanese Yen is important and the profits that can be made on the monetary market are not immaterial but the risk of a country being wiped over the long term is much greater than the reward from trading. Thus, the state should not risk something that is much more transferrable for something that is extremely limited in applicability.
 
Neferpitou suggested that I post gifts, food, and guns on the market at suitable prices. I had no problem putting the guns and food on the market at a reduced price that still allowed Japanese businesses to compete with the Org (I approved of this measure!) -- but I believed the availability of cheaper gifts on the market would result in less damage being done rather than increasing damage as he believes it would do.
 
However, being a loyal ghost citizen of Japan -- I decided to attempt to purchase gifts at my local time (EST) -- when I was told we should stock gifts and such, it was 00:00 EST and all the Europeans were offline and the gifts I could get were going for  10-20% over suggested price. I wasn’t going to have that and decided to wait. I never got the chance to purchase those gifts because Asuka and I were both locked out of the Org.
 
To back up my prior claim that “the availability of cheaper gifts on the market would result in less damage being done rather than increasing damage as he believes it would do” I will use the data below:
Assume that the worker is being paid the highest market wage, which at the moment is $34.30 and as a result is paid ¥30.18 (after taxes)
Assume that prices are set as follows: ¥0.58 for Q1 Guns, ¥1.70 for Q5 Food, ¥3.55 for Q5 Gifts
Assume that the player has an barehanded hit of 5,000 and with a Q1 Gun he hits 11,000.
 
Let’s go shopping, shall we?
 
I shall buy: 10 Q5 Food for ¥17.00 and this will leave me with ¥13.18. I will invest the remainder in Q1 guns, which shall get me 22 Q1 Guns.
 
My damage output = ((22 * 11,000)+(38 * 5,000)) = 432,000 damage
 
What if I got gifts on the market through Japan Org instead of the guns?
 
I shall buy 10 Q5 Food for ¥17.00 and this will leave me with ¥13.18. I will spend the remainder on 3 gifts and have some change left over.
 
My damage output = (65 * 5000) = 325,000 damage
 
The difference is 107,000 damage. If you were to spread that per capita, the damage capacity of Japan would fall by 13,054,000.
 
The best way to counter this would be to make gifts MORE expensive and if you really wish to make a difference, subsidize the cost of 28 Q1 guns which would increase damage by 118,000 per capita for ¥16.24 instead of attempting to add another 35,000 damage for ¥24.85.
 
So, cheap gifts are actually bad for the average Japanese citizen as it promotes the purchase of a product that people can not afford on their daily wage and will diminish damage output of Japan by a considerable amount. Gifts should be taxed more heavily as to raise prices so that fewer gifts are purchased and as a result Japanese damage output increases.
 
 
No pictures? Isn’t that unfortunate? If you are interested in pictures, please refer to the following video on YouTube: Pet Shop Boys - Flamboyant
 
 
Yours Truly,
Pillow The Red Panda



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