Author Topic: Where does the silver go? (How currency enters and leaves our world)  (Read 2050 times)

(RIP) Kyle Graham

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The following is a treatise which discusses how wealth in the form of silver coins is added to and removed from the economy of a kingdom.  It also explores how its kingdoms citizens may work to ensure the amount of wealth in their kingdom increases rather than dwindles and increases in circulation.  This is chapter 1 of a study of the economies of our world.

Firstly, the acts of trade, taxation or production of goods has no impact on the amount of wealth which is available in the world or the amount of currency in circulation.  In fact, the movement of currency via these means from hand to hand is how an economy works and allows people to acquire the goods required to live and perform tasks to acquire wealth from other players.  The more people we have in the economy consuming goods from other players the more wealth changes hands and the more capable a kingdom becomes.  More consumption equals more transfer of wealth equals more tax revenue equals more ability to specialize the citizens into roles which have an impact on actions outside of mere production and consumption of goods.

Next, how does new money which was not previously in the hands of the citizens of the world come into being?  Here are the methods I have found which create NEW currency which may be circulated by citizens:
  • A new citizen of the world completes the tutorial.  They are imbued with a stash of coin to help them along in the world.
  • A citizen is active in a kingdom.  An active citizen can generate at least 1.2 sc per day simply by being in the world and doing something once every two days.  Wealthier kingdoms who have more castles get more.  A palace which has constructed 5 castles in its governed lands generates .6sc X 5 or 3sc per day plus .6sc per day if they are active in a region with a castle.  The palace gets the 3sc and the castle gets the .6sc in this case to spend on projects or supporting specialized citizens.
  • Prayer generates wealth!  Each time a member of the faith complete a prayer session, the generate faith points for the church.  Not only that, but it also generates silver.  According to the wiki on praying, if a parishioner prays at a Parish (level 4 structure) this generates .7+.4+.3+.1 for a total of 1.5sc for each time a prayer is said in a Parish!  This is money the cleric can use to heal members of the kingdom, protect from plague and consume goods on the economy.  Friar Tuck drank a lot of ale in Robin Hood.  Just sayin...
  • Cleaning the prisons.  While un-glamorous and rather tedious, cleaning the prison at a local barracks generates new coin.  Nothing comes out of the coffers of the barracks and 6sc of new money is injected into the economy each time this is done.  As an added bonus, the cells have that fresh pine scent!

Now, what takes money out of circulation?  Not much but there are some frequently used actions that send coin into the ether:
  • Sending items by courier.  Yes, it is easy to opt to "send" an item or some money to a person.  It takes a little time but it gets there and no other effort is required.  This convenience comes at a cost however...  For every 100sc "sent" to a person 1sc is lost.  To send a chainmail from Lothian to Bergunshus costs 28sc!!  That's 4 times cleaning the prison and 2 prayers lost to the nothingness!!
  • Traveling by sea.  Each time a traveler without the traveler package travels into a sea zone, 1sc is lost.  This doesn't seem like much, however, consider a trip from Lothian to Telemark to fight a Native incursion.  A single warrior must move 4 times in and out of sea zones and 4 times back for a total cost of 8sc.  If 10 warriors got to the aid of the local Guard Captain then 80sc is lost!  The same may be said of goods transported to overseas markets.  An additional cost to the economy is always levied when venturing out to sea is the task.
  • Gambling in a Tavern.  While it looks like a great opportunity to make a bunch of quick coin, gambling losses go into the ether.  No one benefits except perhaps some potential lottery winner in another far off kingdom.
  • Buying a breeding license, while necessary to gain the produced products is also an opportunity to loose coin from circulation.  None of the 100sc spent goes to the castle and is lost forever from circulation.  This by itself may be the most egregious consumer of coin which robs currency from our global economy.
  • The death of a citizen.  Any citizen who passes from this world takes their wealth with them.  Some citizens leave with more than others.  If a significantly old and wealthy citizen passes from our midst, this can deal a crushing blow to the economy draining thousands of silver from circulation.

How can we as citizens of our kingdom help keep our economies flush with new coin?  Here are some suggestions:
  • If you find a new citizen, help them complete the tutorial and help them find a place in the economy.  A new citizen is someone who will help share the burden of creating new money.
  • Do something at least once every two days and make sure you are citizen in a region with a castle which has an active vassal.  Spread the wealth!  Don't just be the citizen of the capital.  Branch out to other castles and make a vassal happy!  Good vassals will thank you for it with opportunities in their region!
  • Pray often.  As a member of the faith, you can be most effectively healed if wounded when your faith level is 90% or better.  If you keep your faith level high, not only are you helping your local cleric build faith points which you will appreciate when you have a bleeding wound or the plague, but you will also generate some coin for your economy!
  • Clean the prison twice a week.  Yes, yes boring... However, consider this.  If 20 citizens cleans the prisons twice a week, 240sc is injected into the economy weekly.  That's about the price of a piece of plate armor...

What citizens may do to avoid loss of coin:
  • If you wish to transfer goods to another player in a transaction, rather than send the goods directly do the following:
    • Put the goods on your local market.  The tax generated goes to the Vassal who owns the market and goes right back into the economy.
    • Donate the goods to a government structure if you want to provide them to an official.
    • Have a level 2 structure.  You can grant permissions to anyone to take and deposit anything you wish. This can be a shop or farm.
    • If taking time to move the item to another region is a problem employ a professional carter.  If no one is working as a full time carter in your kingdom, encourage your government to employ one to move goods from market to market or building to building.  Pay them the money it would have cost to send the item and the money stays in the economy to be spent by that carter on consuming goods.
  • If you must move by sea, try to pick the shortest sea route.  If must travel by sea often, consider buying doubloons on the open market with silver and secure the traveler package.  That silver stays in the economy and travel by sea no longer costs silver.
  • If you are a fisherman by trade then consider the following:
       When you go to sea to fish, do so with max energy and glut.  Fish until all your energy and glut are gone and then travel back.
       If you spend silver to travel to sea, consider doing an activity to replace that silver.  For every 3 fishing trips, work in the prison once or
       say 4 prayers for good fishing to make your impact on currency neutral.
  • Although the temptation to gamble in the tavern is great, consider replacing the coin you lost with another coin generating activity like the suggestion for fisherman above.  In case you were wondering, if you pay coin to sleep in a tavern that money is not gone.  It goes as revenue to the Vassal who governs the town where the tavern is built.
  • Execute a will for your passing.  If you intend to leave this world, plan for your estate and ensure it is left to someone that can use it.  Donate your silver to a government building so that it may be used by others or offer it to a good friend you made in the game so that they may benefit from your time.

If you found this topic interesting, provide me with a rating.

If you can think of other things which add or remove currency from the economy leave me a comment and I will update my list. 

Thanks for reading!

Kyle Graham

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« Last Edit: 21 June, 2017, 07:22:19 PM by Kyle Graham »

(RIP) Aviendha Althor

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Re: Where does the silver go? (How currency enters and leaves our world)
« Reply #1 on: 15 April, 2017, 07:00:20 AM »
Very, very informative Kyle!  I thank you for your hard work on educating all of us!  I believe there are very good ideas that we need to encourage greatly to our people!

Alba gu Brath!!

Aviendha Althor

(RIP) Aviendha Althor

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Re: Where does the silver go? (How currency enters and leaves our world)
« Reply #2 on: 15 April, 2017, 07:07:38 AM »
Also, for some reason, the Ratings Stars are absent from this post....hmmmm  I would rate it very highly if they were there  ;)
Alba gu Brath!!

Aviendha Althor

(RIP) Michael Soldano

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Re: Where does the silver go? (How currency enters and leaves our world)
« Reply #3 on: 15 April, 2017, 10:55:20 PM »
Very interesting analysis.  If may add a thought or two...

We're seeing general deflation of prices in ME.   But the problem isn't lack of money.  Let me explain:  I haven't formally been keeping track of prices, but I've been playing a long time, and for a long time the rule of thumb was that soup costs 15 sp (or more!) and cheese cost 10 sp (or more).   In fact, early on many tried using price control laws to keep the price of food affordable.   Prices have declined over time to 10 and 7 and now I'm even starting to see 9 and 6.   If you are familiar with Mao Cao's prices spreadsheet, you'll see the calculated prices are a decent amount higher then they can typically be found on the market today.   

Yet, as you point out, money is constantly being created out of thin air.  So we should be seeing inflation right?  In fact, let's do a quick example.  England has seven castles, York, Lancaster, Gwynnedd, Exeter, Kent, Hampshire, and London (and just lost an eighth in Essex in the merge) and 100 citizens, let's day 50 are active.   So that means each day, 50 x 7 x 1.2 = 420 sp per day or 2,940 sp per week!  This is money that is created out of thin air, money  that doesn't represent any work done or services performed. Travel costs and courier fees are nothing compared to that, and presumably there is an economic benefit to those activities. 

So, with all this new money coming out of thin air chasing the same clothes and soups, we should see high inflation like the Wiemar Republic, right?  But we're not, we're seeing prices decline.   This seems counter-intuitive, but the reason is a well-described economic phenomenon known as a liquidity trap.   In a nutshell, the money is being created, but it isn't being injected into the economy.  One of the reasons it doesn't circulate--and I'm speaking as person with one whole helluva of big pile of money--is  once you have food, clothes, and a nice villa here is nothing much to buy.   And a regent or a vassal doesn't even have to buy the villa.   

Is this a problem?  Declining prices are good, right?  Not really.   Because that means wages are also declining.  This is a particular problem for new players.  Let's say a player buys a cow farm, bucket, hay, knife, and consumes soup, and clothes in the process.  He pays today's prices for all those things.  But his finished products get sold at cheaper prices in the future.   That makes it really tough to get ahead.   Same with travelling merchants who keep markets stocked with good.   They are taking on deflation risk, and not getting compensated for it.   A slight benefit is that cleaning prisons used to dog wages, barely enough to survive.  Now they aren't too bad.   If your goal in-game is to have spotless prisons, that's a nice benefit. 

As we know, there is  a knife edge for new players economically.  In order to get started you need some tools, a hut, and some land.  Then you have to wait a while for your goods to sell.    It is really tough going at first, because your money is tied up in physical goods, and then you have to wait for the finished products to sell.  If they don't sell fast enough and/or you make bad decisions, you starve.    But there is a tipping point, after which you are  home free.  You have the luxury of not needing your products to sell immediately, and you can buy a set of spare shoes if you need them.  At that point, since there isn't much to buy (your are limited in the number workshops you can own, for example), you might as well just see how far you can climb up the Wealthiest Player Rankings, and try to spend as little as possible now, because it will just get cheaper in the future.   That of course, just takes more money out of circulation and keeps prices declining. 

The hording problem is made worse by the economic policies of many kingdoms.  Specifically unnecessarily high taxes.*  Taxes suck money out of the pockets of new players who don't have much, and  puts it into the pockets of vassals and regents who have lots already.  And once in the pockets, instead of circulating the money just sits there.   So the knife edge of economic survival for new players just got sharper. 

As an experiment, when I was vassal of London I set the taxes to zero and invited wealthy traders to do business there.  As a result, goods sold quickly on the market and the population boomed.  I made tons of money from the active player bonus and from the inn, but made even more money from quickly turning over products on the active market.  After I left, taxes were restored, the wealthy traders left, and the population plummeted.    Not ironclad proof, but it is pretty convincing evidence of both the new player economic knife edge and the liquidity trap. 

*I say "unnecessarily" high taxes, because taxes that are spent on the kingdom are necessary revenue.   Monies raised above that amount actually harm the economy, as we've seen in England. 






(RIP) Kyle Graham

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Re: Where does the silver go? (How currency enters and leaves our world)
« Reply #4 on: 16 April, 2017, 02:38:58 AM »
Wow!  Nice response Michael!  I would postulate a theory regarding the declining value of goods based upon practices I've observed coupled with the results of your experiment which was to be the basis of my second treatise.  But since you've brought it up, I'll address that now!

By the way, what you describes as happening in London was, in my opinion, a result of demand driven consumption which created the economic boom due the presence of goods on your market because of the participation of said merchants.  Goods would arrive on the market, be consumed and then create more demand for the supply to fill.  This 100% works if the produced goods find a further market where those goods may be consumed.  My guess is that those merchants moved basic goods into further economies meeting those economies demands.  Based on the rest of my treatise, this crushed the consumer economy in those further markets and the demand dried up...

My theory is that the declining price of goods in ME is a result of a declining GDP if we measure GDP by the amount of goods produced AND SOLD per person coupled with a lack of consumption.  The lack of consumption, in my view is the result of a practice I've observed which squeezes out new entrants to the market coupled with the lack of monetary circulation or hording of which you spoke. 

The general practice which I believe is hindering economic activity is the act of minimizing supply chain contributors to produce an end product.  While IRL, this is a dream situation, which results in maximized profit and the best price for a good.  Often however, IRL this phenomenon is nearly impossible for practically all products as to produce a car one does not typically engage in the practice of mining Iron Ore.  In ME, however, this practice is VERY possible and often practiced to the detriment of those who participate in the endeavor. 

The economic engine in this game is set up to create a supply chain with individual contributors who pull a profit from each good produced along the way.  If a different contributor gets their value from the item produced, then the price of the product goes up.  Lets take your soup for an example which contains one of the most complex supply chains in ME. 

To sell 2 fish soup one must consume the following:
  • Fish
  • Salt
  • Wood
  • Pottery
  • Clay to produce the pottery
  • Wood to produce the pottery
  • Bread
  • Wood for the bread
  • Wheat Bags for the bread
  • Fertilizer for the Wheat Bags
  • Wheat seed
  • Hay for the fertilizer
  • Manure for the fertilizer
  • Raise Cow, Sheep or Pigs for the Manure
  • Consume Hay or Wheat Bags for the Livestock

Above are 15 individual acts of consumption which take place and should have been supplied by the following individual professions:
  • Cook/Innkeeper (let's face it, they are cooks.  nobody can sleep there)
  • Fisherman
  • Woodcutter
  • Potter
  • Salt Miner
  • Clay Miner
  • Wheat/Hay Farmer
  • Herbalist
  • Livestock Farmer
  • At least 1 Merchant to move the goods from region to region based upon where they were produced

The opportunity cost to produce 2 soup by all of those craftsmen totals 122 hours.  Keep in mind those 122 hours can produce a LOT more soup because the chain below it produced enough goods for 6-10 soup as well as other byproducts which may go into the production of other goods.

This one product, NOT including the tools required for each profession should support 10 consumers in its act of consumption.  Each of these consumers absorb, food, clothing and tools required to ply their trade.

Rather than supporting 10 consumers, if one works to acquire one's own raw materials to exclude as many hands as possible from the supply chain and maximize your margin and potential profit as we are all able to do, it only supports 3 consumers.  Not only that, but because you've put your own time into it's production, you feel you are able to discount your time spent (particularly with worker and travel bonuses making time cheaper) the price of that product comes down.  This practice maximizes margin but also minimizes potential consumption reducing your consumer base by 70%!!

I've only been in the game for a year, however, I would wager that when the price of soup was 15sc each, there was an individual in every step of the supply chain selling a product on the market at each step and recuperating the value of their opportunity cost or TIME at each point in the process.  Every product sold had hard currency in the form of coin tied to it, not just time, and the value of the end product held firm.  If someone along the way, discounts their time making their product cheaper, they make less money and they cannot afford the 15sc soup.  If however they keep their price up, they can afford the soup and they are an effective consumer.

Now, you spent all that time minimizing your supply chain to make your 15sc soup, but another fellow has spent all that time doing the same thing.  He sees your 15sc soup on the market and wants the capital out of the soup he made and put on the market.  Well, he has very little silver invested in the process, only time and so he discounts his time, sacrificing his opportunity cost, by dropping the cost of his soup to 14sc and is able to sell his soup first.  You can see how this becomes a vicious cycle when you manage to shrink your supply chain and maximize your margin.

The presence of the worker package in the supply chain actually allows a person to discount their opportunity cost and depress the price of goods.  Additionally, the practice of supply chain minimization also decreases the number of consumers in the economy, decreasing the demand for that product and decreasing the value of that good.

My next topic will repeat this missive and address the issue of supply chain minimization.



(RIP) Kyle Graham

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Re: Where does the silver go? (How currency enters and leaves our world)
« Reply #5 on: 16 April, 2017, 06:00:34 AM »
After having addressed Michael's topic of why are the prices of goods depreciating which I postulate is a lack of value in opportunity cost resulting in less consumption in the economy, I also wanted to address his second point raised in the posting on the topic of hording. 

While it is true that once basic needs are met in the game, there is very little else which may be purchased off of the markets another commodity which may be consumed, bought with silver coin, is power and influence.  While accumulation of wealth in the game may buy you a badge and some sort of notoriety in the game from its display, possessing wealth allows a person to obtain a position of influence in government and subsequently attract a body of followers.  The larger the body of followers the greater the power of the leader of the body.  With the followers one may build a self sustaining consumer economy which injects additional coin and may be leveraged to support a standing professional military.  With the use of a military, one may acquire more wealth by use of official force with the support of a monarch and achieve a different sort of notoriety. 

I further postulate that by building a consumer driven economy whose purpose is to raise taxes in support of a standing military, the structure of the world in ME may be altered.  How one attracts new followers with a pile of money is a matter of tactical implementation and each may have his own methods.

Gualtieri Colapesce

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Re: Where does the silver go? (How currency enters and leaves our world)
« Reply #6 on: 16 April, 2017, 09:08:51 AM »
Very interesting.

Thank you for your job, guys.



Alexander VII

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Re: Where does the silver go? (How currency enters and leaves our world)
« Reply #7 on: 17 April, 2017, 12:03:32 AM »
All very sound and interesting remarks. I believe that there is a component yet to be addressed though.

The Skills effect on the production of product and the recovery of resources. Again, this has an effect favoring the older players, but I will wait to see where it is applied.

i also suspect that there may be some admonishment in these thesis at some point, against the dogma "Blessings of the Artisans" but will postpone my remarks.

In all cases of "extreme wealth" it is also not discussed if the funds could or should be gifted, donated, or loaned to new players by a contract. At the least, a contract MIGHT be applied to leverage a reclamation of goods from players who 'die" still in debt via the admins.....probably with a 90 day hold in case they restore the character.
Faith Defines All Things; their remembrances clearly defined make them living custom.

(RIP) Berton Berton

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Re: Where does the silver go? (How currency enters and leaves our world)
« Reply #8 on: 17 April, 2017, 12:52:04 AM »
I bow to Kyle, Michael and the Pope.


(RIP) Kyle Graham

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Re: Where does the silver go? (How currency enters and leaves our world)
« Reply #9 on: 17 April, 2017, 04:12:23 AM »
Your Holiness!

Thank you for your remarks!  And again, thank you for curing me of the plague last year and my induction into the faith.  I've worked to expand the church as much as I am able through what little influence I possess.

Indeed the effectiveness of older players in the game does also have an impact on the ability for new members to earn a living. 

I would suggest, however, that the interests of a member of our world changes once they have been a part for an extended period of time.  One may enjoy the thrill of industry and continue to produce in proliferation, however, I would expect that not as many find that as fulfilling as the thought of influencing others through official appointment or participation in conquest or other military pursuits.  Furthermore, an older player should be encouraged to have level 2 shops in which they do not themselves work.  They should be offered incentive to employ others to the labor instead and provide a good wage in the doing.  Again, this will create less margin in the enterprise, but it will improve the survival rate of those new to the world.  The incentive may be that those who employ others in their shops to then increase the number in the kingdom would be granted favor in contracts of trade with the kingdom and its allies or as well be granted the title of Lord or Lady as is in the power of the vassal.  Those who are very effective in aid to others may also earn recognition in Royal Appointments of title.  In this way, one who is devout in the faith may prop up more of those who are destitute more effectively with multiple places of production earning greater recognition.  Those older players rather than producing should be working in the interests of justice, manning Towers, presiding over Courts and bringing persons to justice who are in violation of a kingdom's laws.  Much time could be spend in this regard protecting kingdom resources for the effectiveness of the working class.

Additionally, there are those professions which are difficult to achieve a steady income.  Namely those who mine gold or fashion that material into usable items.  Because of this difficulty, I would expect no one to enter into this profession who is not of a higher level of skill and age or who is able to have a second shop which would allow the sustenance of an owner while waiting on a sale from the profession of a gold smith.  Along these lines, how many monarchs actually wear a crown?  My opinion is that should this practice become commonplace, this could be of benefit to the economy at large.  A monarch could solicit donations for the crown of the kingdom which would reside in the palace and be worn on occasions of merit.  The fact that this becomes the target of a raid creates a dimension of preparedness and notoriety in Royal circles.

Another practice which could increase the survival rate of those new to the world is that of marriage.  The fact that each member of the relationship has access to the other's property would increase the effectiveness and variety of life of each.  If this practice were encouraged more, as is the duty of the church, among the new members of the world, we would also see a greater number reach a greater age.  Encouragement would be in the form of matchmaking to be done by the clerics of the realm.

In summary to the remarks of Your Holiness, the devout having more than one shop may be of great benefit to the community should they leverage that privilege for the good of all.  Additionally, should the older players defer the duty of production those those who require work to sustain themselves and instead pursue more lofty goals, this would also be of benefit to the overall economy.  Those who are older players would be in a different class of citizen who's time is spent not in labor of production which would be reserved for the lower class of our feudal system or filling dire needs should there be great need.

Alexander VII

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Re: Where does the silver go? (How currency enters and leaves our world)
« Reply #10 on: 17 April, 2017, 06:47:15 PM »
So, in this comparison it is not the ownership and access of second workshops but how they are used by spouses and the gentry?
Something akin to the "shop masters" become more of the Ancient Greek Nobles who were then responsible for studying martial and mental training? This would be their purpose then to advance and protect the state while the younger citizens and families become the craftsmen and working class....for a time...until they also become owners?

So, if my theory is accurate, in such a format it would be wiser for the younger to not buy shops quickly, or should they? Would they be better to focus on the raw goods and fields owned then buy the higher Level shops of their masters. The masters should by then be the Nobility? Further speculation on this possible framework...
at what benchmark do the older citizens relinquish manufacturing and even ownership to the "middle aged" citizens? Would that be a national necessity benchmark or a more personal wealth related mark? Also, knowing some raw goods are easier to attract with higher skills, such as the fisherman and gold mining, should these be left to the "older/nobility"?

Please do not feel limited by my small understanding and the oversimplification of my terms. This is your course of study and here I am the student. Please, you and the other cadre return to your lesson plan and I will wait and see if my answers arrive in time. I only voice the questions so that you and they have something to consider in the further subtopics.

I also praise Teos every day that your illness did not mark you for life and has only served to remind you of the value of yours and every other citizens faith and health. All that was done was by your faith and by the Logos.
Praise His holy name!

I also thank brother Berton for his generous approvals. Like him I am pleased to hear the dissertations of Constable Graham and Doctor Soldano.
Faith Defines All Things; their remembrances clearly defined make them living custom.

(RIP) Berton Berton

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Re: Where does the silver go? (How currency enters and leaves our world)
« Reply #11 on: 17 April, 2017, 09:29:07 PM »
So, if my theory is accurate, in such a format it would be wiser for the younger to not buy shops quickly, or should they? Would they be better to focus on the raw goods and fields owned then buy the higher Level shops of their masters.

I think it's best to don't buy shops quickly, out of possible local shortage underlined by old residents.
It's easyer to start making money as hired worker, or selling raw & agricultural materials.
Food is a dayly need and clothes a montly need, so inns and tailors work fine nearly everywhere.
Jewels and weapons are sporadic needs, and so their sales.
Other items are  in an intermediate position.

 

(RIP) Kyle Graham

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Re: Where does the silver go? (How currency enters and leaves our world)
« Reply #12 on: 19 April, 2017, 10:49:39 AM »
Your Holiness embarrasses me much with his compliments to my studies!  I am surely just an attentive student reporting what he has learned and nothing more.

Indeed your questions in and of themselves expand my point of view to broaden thought and study.  Please do continue to question so that I may fully explore the topic.  This is more valuable to me than just listening to the prattles rattling around in the melon which rests upon my shoulders.

His Lordship the Constable of Aragona is quite right.  It is much easier to live by employment as income as the stream more steady and less sporadic.  Certainly one could afford to live and own a hut should they like.  If they are married, then they can split the use of a hut with someone else getting them further ahead.

Indeed Your Holiness, the observation you've made is what I had in mind.  The more seasoned shop owners become the benefactors of the populace allowing them to exist in greater ease through the provision of steady income.  They are then free to spend time in pursuit of self improvement or engaging in the other positions of Justice and watching over the populace.  In effect this creates an opportunity for specialization as a Judge, Customs Officer, Prefect, Tower Guardian or Guard Captain.  All very important positions to be used to prevent exploitation of the kingdom's citizens and resources and allow for greater efficiencies to be realized.  An active constabulary will also increase the likelihood that a new citizen will survive as well as thrive as it opens up opportunities for advancement.

Now, onto when the aged citizen should move onto other pursuits.  Again, this is a personal choice but the government should guide the actions of its citizens convincing them of the benefits to the citizenry at large.  Offering Royal Title as an incentive or others sweeteners as I've mentioned being the carrot to provide.  When a citizen should move on will depend on what their individual aims may be.  It should be the duty of the Vassal of the citizen to discover their pursuits and guide them into that direction either directly or through delegation of appointment.  Should they wish to remain a shop owner then provisions should be made.  Should they desire the production of a different good then a representative of the Vassal (Customs Officer for instance) should assist the citizen with finding another who is also looking for a change and broker a deal to trade shops or move onto farming and the like. 

Now, as I had stated previously, all the professions are driven by consumption.  As Lord Berton had mentioned before, some goods are consumed more regularly than others making some professions more proliferous than others.  One should find shops, farms and gathers in numbers equal to the amount of consumption which exists.  For this reason there should exist a ratio of production to consumption in the supply chain.  The goal of a managed economy would be to find that ratio and seek its meeting by encouraging certain professions be occupied at the right time based on the amount of production and consumption.  In this way, as the population and consumption grows, the need for shop owners and gathers also increase creating opportunities for advancement to shop ownership as demand grows.

Seeking and maintaining this supposed ratio for the kingdom overall would be the responsibility of its minister of economics who would work with the customs officers tracking the availability of goods in each of the markets and offering opportunities to new citizens to fill needs where goods become in short supply. 

Outside of the methods of production, persons may earn a living as merchants and carters bypassing shop ownership altogether, absorbing the opportunity cost of moving goods from one market to another.  This also offers an opportunity for advancement outside of owning a shop.  Merchanting activity can be very beneficial to the kingdom as a whole.  Rather than a citizen spending travel time getting goods they need from another market or putting goods in another market so that they sell, they just look for goods in their own markets and put what they want to sell up locally.  The customs officer can coordinate with official merchants to move scarce goods into their market or arrange for an export of surplus goods.  No time is spent by the crafts persons seeking a market for their good or raw resources.  They instead rely on the logistics network for fill the need for them. Through the use of local markets for convenience as merchants pick up and move goods around, this enriches the vassal's coffers spreading the tax income around and offering more opportunities to support the kingdom as a whole.

Please ask another question or let me know if I've not explored the topic completely.


Alexander VII

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Re: Where does the silver go? (How currency enters and leaves our world)
« Reply #13 on: 22 April, 2017, 10:39:42 AM »
Let us return to the specialization material then:

When a specific task has a better result based on skills, would it be wise to "Guilde" them and assign members training targets for membership (or even right to own shops) or does such a distinct control become unnecessary or worse....restrictive of new player enthusiasm?


Back to Prayer:

I am contemplating a "Prayer Day" with compensation of some foods. Would that be contrary or complimentary to the economics model you have described so far?

Faith Defines All Things; their remembrances clearly defined make them living custom.

(RIP) Kyle Graham

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Re: Where does the silver go? (How currency enters and leaves our world)
« Reply #14 on: 23 April, 2017, 04:22:18 PM »
Oh Your Holiness!  You are a fantastic guide on this material.

Yes, the concept of formalizing trades into guilds possess extreme merit.  A customs officer who is in touch with the supply and consumption in a market of a particular resource over which their vassal is appointed steward by their Regent may wish to formalize the production of a resource into a guild.  The guild master in the form of the customs officer may wish to appoint a number of resource gathers and offer them guidance on the depletion levels of a resource in their region.  Additionally, should this be a resource which is only consumed by the government, such as stone, then the customs officer may appoint a price and a quota per gatherer which allows them to earn a reliable living off of the resource.  This offers a wage akin to employment in a shop in which the shop owner is the guild master in this case, being in tune with the demands of their market.

Even if the resource is not solely government consumed but is a critical resource which requires careful stewardship by the vassal, the guild may be a means to protect the efficiency of that resource and prevent over exploitation.  The sole right of the guilds to gather a resource may be protected by kingdom law and enforced by the guard captain and judge.  With the protection of the resource established, the guild members may ensure their ability eat, be clothed, in possession of sturdy tools, allowed time for prayer and allowed time for improving their skills in their profession.

In short, a guild is an effective method of managing resources and ensuring employment for new players.  Should a new player wish to apply for an opportunity in a guild and then later leave that guild for another, their guild master should be made known of this and help to ensure their transition.  The guilds should always actively seek new members and look to rotate older members who seek new challenges into other professions.

A program offering food for prayer could fit into the proposed economic model provided the following guidelines are followed. 
  • The parish receiving prayer purchase the food being offered from local craftsmen on the open market.  A pre-arranged price and quantity at a particular time may be arranged but the exchange should strive to be maintained on the market.
  • The food is offered to parishioners at a greatly discounted price, say .1sc again on the open market.  Make it well known that on prayer day, all those engaging in so many hours of prayer are being offered this many of this this good on the market at this price.  Ask upon the honesty of the parishioners and members of the community with the promise that should the offer be abused it will not be offered again.
  • Ask help of the local constabulary to warn abusers of the offer and ask that they return goods which were not rightfully earned.  Merely educating the person who may have been ignorant of the offer may be enough to get them to adhere to the program.

The above benefits the local economy through consumption and taxes on the local market.  The local trades man who would have sold the food to be consumed locally does not suffer but instead is offered an opportunity to produce a product to be consumed immediately upon placement on the market.  The local government benefits as they achieve revenue via exchange on their market.  The only interruption to the flow would be a bump and a dip in regular market consumption of food in and around Prayer Day.

I hope this helps, please offer me another concept.