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| [NOTES]Krechzianko's Economy; Socialism! | |
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| Topic Started: Jul 22 2005, 02:15:04 PM (126 Views) | |
| Krechzianko | Jul 22 2005, 02:15:04 PM Post #1 |
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Dictator of the Proletariat
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Krechzianko is, as its title suggests, a "People's Socialist Republic". Its economy is socialist in most every way, and it engages in strong protectionism and limited international trade. First, international economics: Krechzianko does not allow any large-scale foreign business to exist within its borders, and even the smaller-scale businesses are being shut down at this time. Part of the government's new five-year plan consists of abolishing all foreign corporations and stores from Krechzianko's borders. It sees foreign corporate interests as an infection that must be dealt with, lest it grow and become more powerful. As such, all business is sneered at and looked down upon by Krech citizens, with the exception of certain local shops and open-air markets. Foreigners are often viewed as greedy capitalists, especially Americans. There is no stock market in Krechzianko. As mentioned above, only the smallest of businesses are allowed to exist, and these must jump through a series of hoops to make any profit whatsoever. A shop must report estimated profits every fiscal year to the government, and pay taxes ahead of time based on this estimation. If, at the year's end, it makes more than was predicted, a huge fine will be enforced on the business. This makes private interests highly unprofitable in Krechzianko. Krechzianko is part of the International Fair Trade Agreement, a closed bloc of nations dedicated to socialism and fair treatment of workers. The Krech government refuses to trade with other nations unless a request is specifically made to IFTA leadership. Otherwise, all trading is done within this bloc. Other EP nations in IFTA are Kelssek and Nouveau Bretagne. The monetary unit of Krechzianko is the keczrekna, the exchange rate of this is set at a stable 20 kecz. to the US Dollar. To help stabilize the monetary unit and keep Krechzianko from building a large trade deficit, the kecz. is pegged in exchange value to the Kellsek Dollar at a fixed rate similar to that mentioned above. This keeps the monetary unit from losing influence in the IFTA bloc. Krechzianko has neither a trade surplus nor deficit; it is usually relatively balanced in foreign trade. This, too, helps keep the keczrekna stable. Krech citizens are 'taken care of' by the government. They work under state employment, all of their production going directly to government control. The state then takes what is necessary for its survival based on quotas and adjusts production of the keczrekna accordingly. It then trades these products and controls the minting carefully, eventually distributing a small stipend to citizens based on production. The people are then authorized to spend this allowance as they see fit, usually on luxuries such as televisions and computers. All necessities are paid for by the state, though it does not always distribute these supplies itself. For instance, citizens receive stamps which allow food requisitions along with their monetary stipends, and they may stop at a government food market to purchase necessities. There is no major problem with stealing or reproducing these stamps, as all citizens are content with their standard of living as is. Housing and furnishing is, for the most part, provided by the state. Most services are paid for and run by the government. The Central Committee creates a Five-Year Plan every half-decade, during which new economic goals are set for the people to accomplish. Oftentimes the state will increase or decrease production of certain products relative to the people's needs. Supply and demand are not taken into account in a businesslike sense; this allows necessary products to be built before extravagant luxuries. One interesting exception to the Krech economic system is vodka, which is controlled by small private breweries instead of the state. The government instead subsidises these industries and allows the workers to make a profit, which is then mostly paid in taxes to the government. However, these workers, interestingly enough, make a small, direct profit and receive the standard private allowance which all other citizens may have. However, to control the vodka industry from becoming too large, a maximum production quota is set every year. One must apply for a special license to produce the drink. |
![]() "Not only does [Krech] have the tongue of a diplomat but a groove the ladies swoon over." -Soul Cancer "Krechziankans are known to simply disregard information to blow the shit outa someone they don't like." -FPS ![]()
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7:50 PM Jul 10