Economics and Titulia: Applying Real World solutions to Utopian conditions.
Economics and Titulia: Applying Real World solutions to Utopian conditions.
Recently I have been sort of bored with Titulia and all our love ins so instead of arguing political points Ive been doing a little thinking on my first interest here the Economy.I have a few points some old, some new which I hope make some sense to the majority of us. Either way I hope there is some common sense solutions in them.
Whats the situation?
Firstly its important to recognize that the market conditions in Titulia are NOT the same as they are In real life, its simple as that, left and right wing, free-market and interventionist are solutions that have been worked out over centuries to deal with the demands of a real world market, thus they are only applicable to that market or ones which exhibit the same conditions as it. Titulia has none of the same conditions. This has been ignored in our political solutions for too long especially in recent times.
Titulia is a Utopia, we wake up and need for nothing bar entertainment and our own sense of self satisfaction. What we think of as our economy lives and has for some been developing as a massive total and frankly bizarre form of the welfare state. Essentially Admin hands out some money once a month to the government and there it sits dormant in the states bulging coffers bar for some minor expenditures on wages and this is the basis of all economic activity in this state bar the odd small transaction.
Historically in Titulia there has more often than not been free-market policies taken on by government the mantra has been dont get the state involved and the freemarket will grow the economy organically, clearly this does not work and has not worked, the reason why I will go into later. A minority of our governments (including mine) have been demand side interventionist in their policy making and this has been slightly more effective as it did at least spend some government money but it did not really increase economic activity on the whole. In the Titulian context both of these ideologies are failed absolutely although they are not totally defunct.
Whats gone wrong?
The main reason with the Titulian economic experience lies in the very basis of our state. According to Admin themselves in their blog this was meant as a politics site and buisness and the economy was an afterthought, since then the economy has acted dis-functionally as most afterthoughts do.We have set up a system where in real life terms we are essentially a nation of vagrants sitting around arguing semantics while were are fed, clothed and housed by some cherubs sent by our all seeing all knowing demi-god that is Admin.
There is a consensus is that there are three main problems with our economy, that there is nothing to spend money on, that the Tollar has no real function and that there is no immigration. I am suggesting here that these issues are all in part at least linked to two overwhelming factors which have lead to the conditions on this site developing so far from anything like a reality that it solves no positive purpose bar to find more elaborate ways to argue points which become more and more asinine with time.
What are the problems?
The first problem is one which we have gone over time and time again IMMIGRATION without people we will fail to get demand for goods no matter how many goods there are and no matter how low people keep taxs or any government intervention in the economy.
The more pressing issue is one that has not been discussed as much yet and that is INCENTIVE and MARKET CONDITIONS. This is the main reason people do not set up companies or indeed find any use for the Tollar. As I have explained above we live in a Utopia an almost total welfare state and this has left us with market conditions which are both unrealistic and have no incentive attached.
One of the basic principles for the production of any good or service is that there must be some necessity to earn the money involved. If we have no necessities there is no need to work, if there is no necessities then money loses its main function. Basically why would I want to set up a company or earn tollars when I do not need either to perform anything on this site. Now this argument has been met with an argument of some citizens as being anti freemarket as it would logically lead to us creating necessities to give the elusive incentive to contribute and those citizens would be right but for one important thing, this is not th real world. There is no market so the assumptions proponents of the extreme of the free market put forward hold absolutely no ground in Titulia.
There is only one economic choice we face we can either 1. Create market conditions by basing our system in necessity, potential reward the lowering of potential risk and finally pursuing aggressive immigration along with admin or 2. Have no economy, competition or innovation of any substance and continue to live off admin handouts.These are our only choices and with this I want to address the fallacy that certain people have been perpetrating (specifically in my private mail)
that pushing a "trade economy" is somehow a responsible thought out economic policy.
The thought behind the "trade economy" is baseless, here are the facts, all economies are "trade economies" by definition, proposing a trade economy is like proposing Oxygen Air, the whole concept is a tautology. Is this as opposed to a non trade economy? Of course a government should encourage trade but how is the question? With no incentive to earn money or start a company or even produce a product or service how do you encourage trade? This is a question the people peddling that particular swan-boat need to address to be serious?
I have seen people namely Lea Carmody in private mail push this idea of a "trade economy" recently but I would enjoy an explanation of how she intends to do that as I fear it is not a policy of any kind but an ill thought out and nonsensical soundbite. It is easy to say "encourage trade" over and over again but when there is no incentive to produce a good or earn tollars how exactly do you do that? At the moment the Economic policy being proposed by Mrs Carmody rings a lot like "there is no place like home, there is no place like home" if there is a chance Lea or her running mate Tom want to take and succeed in executive office on this issue they need to do much better than this. Thats not a partisan attack these are just facts, we need to face those facts before we start talking left and right and promoting trade, without some incentive or necessity to earn then we have no market and all sides of Titulian politics will not have a leg to stand on in terms of economic or buisness policy.
Article published in The Titulia Post
Comments
So no answer then James?!
Ger's still playing Space Invaders. How delightful!
IF you could answer one of them questions below Tom or deal with any aspect of policy past soundbites I as a citizen would appreciate it, although we all know how you feel about citizens who dont agree totally with you, you declare martial law and try have them "rounded up" now there is a historical fact.
Tom,
I got bored and this is nothing to do with politics, this is economics I know it all washes into one for you but there is a difference.
Anyway Tommy boy I know your their bootboy but heres a fact: Admin set up the economy after calls from the legislature and as they are fallible like the rest of us
(I know, I know, crazy eh?) they made mistakes!!! Are you arguing they did not??? Are you arguing it is my fault?? It is quite clear that admin made mistakes as did the legislature at the time, no big deal its human nature but its time to fix it, observingthat Trade = economy is hardly going to fix anything!
I commend your economic policy Tom on realising that you have to trade goods to start an economy!! Thats a truly brilliant observation but its as far as youve gone.
I could have got 12 year olds to tell me that, the question is what do you want to do about it??? Youve not said..... You cant force people to trade and without an incentive you cant coerce them to.... as yet youve not said what you plan to do to to get people to trade??
Its a lovely soundbite but continuing to say trade economy is not going to achieve anything but hey keep tapping those shoes Dorothy!!! Theres no place like home,......
Also Tom nice ditty trying to rehash the facts there, yeah we all know i was here before eh??? Who and when Tom? because either you know something I dont or else your making up "facts" as usual.
LOL! Come on Gerry .. the SDP has been back in Liberty House for one day and you're already up to the same old. What happened to your novel about focusing on your duty as Associate Justice and removing yourself from the politics?
Oh and regarding the whole "afterthought" of business and the economy wasn't Admin's concept - it was a response to what the administrations of the time called for. Since we now know you were around back then - this is something you're well aware of. Nice try passing the buck though ROFL!
Oh and regarding the whole "afterthought" of business and the economy wasn't Admin's concept - it was a response to what the administrations of the time called for. Since we now know you were around back then - this is something you're well aware of. Nice try passing the buck though ROFL!
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