A Seven-Point Plan for Economic Revival and Transformation for the Republic of Coria
A Publication by the think-thank "Institute for Economic Revival". In association with the departments for Finance, Social Affairs and Economics; Public Services and Innovation and International Trade
Mrs. Jeanette Smith
Prof. Balian Forther
Prof. Dr. Charles White
Dr. Stephen King
Prof. Dr. Whitney Colán
Col. Sebastian Duran
Lt. Col. Vanessa Jones
Adm. Pascal Fischer
Prefix
The Seven-Point Plan for Economic Revival is a document compiled by several departments of the Coric government. Primary objective is to overturn the destructive changes made in our economic system during the tyrannical rule of de Montfort. Socialist and Montfortist economic principles have been very influential in our nation ever since the announcement of the New Era. It is our strong believe that these economic principles are responsible for the substantial economic backlash our nation has experienced. Inflation, unemployment and the failure to become an ecomomic power of international importance are the most important examples of areas in which the outdated and wrong principles of the former governments have hold our country back and as such have stalled the growth and prosperity of Coria.
Collecting the best and most innovative thinkers on economics in our nation, a platform has been established to research a new way of economics. Our nation needs to rethink the past and we need to make important choices in order to allow the Coric economy to take a next step and to become fit for this new century of international coöperation.
It is our firm belief that these changes and reforms will lead to more prosperity for the people of Coria, to the expansion of the principles we hold dear and to the benefit of our Republic.
1. The Concept of the Economy
First and foremost, it is important for us to realise that the economy is not a solid or defined institution that can be controlled by laws or barriers. The economy is the sum of all citizens and companies in our nation. It is not something abstract, it is something that we deal with every day. Buying our daily groceries, or paying one Ore to buy an ice-cream cone immediately influences the economy. If we take a step back, we see that the economy is nothing more and nothing less than the intertwined marketplace that is our world. Money is not an abstract concept either, it is a means man invented as an aid of trading in the marketplace. Everything that is economic therefore has to do with the market.
The government should realise that the market, and the economy, is not something that can be planned, but is something that is created by spontaneous order. The laws of supply and demand are the only laws that function in the marketplace. Mingling with these natural laws of supply and demand by creating artificial barriers only lead to inflation and are destructive for both suppliers and costumers.
Therefore, Price Control and Import barriers need to be abolished immediately. It is artificial control of the laws of supply and demand that will wreck companies and will place an unnecessary economic burden on the costumer.
2. The Market is International
If we as a nation want to participate in the international field, we need to accept the fact that the market is an international one. Supply and demand aren't concepts that only work in the nation, but they are the same everywhere in the world. Therefore, Barriers to prevent foreign investment and protectionist meassures will ultimately backlash. Not only will they aggrieve the customer, and indirectly the Coric economy, but they will also lead to less foreign interaction in the economic field.
The International market doesn't mean that the concept of the nation state has to be surrendered. Immigration control and preserverance of the cultural identity are distinct from economic internationalisation. It could of course be that internationalisation could give us the opportunity of spreading the benificial values of the Republic of Coria in other countries, but this could perfectly happen without allowing alien cultural and political concepts in our nation. Our nation has to commit itself to a free international market.
3. Money is not a Government Issue
Contrary to what is happening at the moment, money should not be distributed or controlled by the government. In the Montfortist system, the Ore was the direct responsibility of the department of Finance. However, it is dangerous to mingle government and currency. It leads to inflation and artificial fluctuation of the monetary system.
We would advise the government to create a private organisation tasked with minting of the Ore. However, the tasks of this institution should be severely limitted and the production of money has to be in perfect balance in order not to artificially change the value of the Ore. The government should not have the power to ask for distribution of new money. The golden standard should be preserved to ensure the value of currency.
4. Immediate Privatisation
To counter the nationalisation of companies by the former governments, this government should persue immediate privatisation of all companies currently owned by the state. On the long term, this will have to include the privatisation of the deparment of transportation. In order to maintain a functioning economy, it is of paramount importance to allow companies to explore the market without any restrictions other than criminal law.
State companies need to be privatised by initial public offering. The money earned has to be used by the government for economic development. It must be ensured that the money does not leave our economy in order to prevent a recession.
5. Erradication of Public Debt
One of the very few positive things inherited from the foreign government is the low public debt in comparison with other economies. Because of the isolationist policies by the former governments, they have preferred driving the country into a rigid economic crisis in order to prevent having to borrow money from other countries. Hoever, their decision to print more money than the golden standard allowed has created a dangerous rate of inflation.
In order to battle inflation, we not only need to return to the golden standard, but we need to increas the value of the Ore. This can partly be arranged by immediately paying off all public debts we currently have. This way, we not only create a solid economy but we also get rid of superfluous money.
This will unfortunately create a minor economic shock in the nation and may lead to a temporary economic recession and rise of poverty and unemployment. There is, however, no other option. Inflation has to be battled and this is the only way to do this. Independent institutions such as churches and charities should be promoted in order to combat possible unfortunate effects of this necessary economic change.
6. Cuts in Government Expentiture
Government spending is often wasteful and inefficient. The government is not only involved in areas that should be private and should not have any government involvement, such as pensions, housing and transportation, but also is exeeding her limits in areas that should have a public status such as defense, education and health care. The involvement of the government in the first category should immediately be abandoned. These areas, which currently are public, should be treated the same way as nationalised companies need to be.
The second category is the interesting one. It is important to leave as much as possible to the market in these areas. For instance regarding teachers and doctors as private agents and not as government employees. In other respects, these areas need to have limitted goverment control because in the current situation, it would be irresponsible to privatise them. Continued privatisation needs howver be researched.
Welfare needs to be abolished and to be transformed into a system based on charity. Working camps including free living and free food should be established as an alternative for welfare.
7. Tax cuts and equal taxation
As a result of these economic reforms, taxes should be drastically cut. This think tank proposes a flat tax rate of 18% for all citizens of Coria and a rate of 4% for companies and institutions. This will not only encourage the economy and will lead to more economic growth and prosperity, but it will also prevent the government from being a bully and a scarecrow. We need companies to stay in Coria, and we need to create a beneficial economic climate for companies and foreign investors.
The government has no right to take money from its citizens without giving back something substantial. Therefore, any government surplus should be returned by the government in an equal fashion.
Equality for the law is an important principle. Progressive tax therefore is immediately contradictory to the basic principles of human equality and are disasterous for the more entrepreneurial citizens of Coria. Private initiative is the backbone of an innovative society and should be encouraged. Not punished.
Conclusion
This Seven-Point plan contains some very practical ideas and advises but should primarily be regarded as establishing a visionary insight into reviving our economy. Pracitcal application should also be treated with the utmost care, and therefore we, the Institute for Economic Revival, together with other economists, will provide our continued support to the Coric government in applying these meassures.
We thank the Council for National Unity for this opportunity and for their concern with reviving the economy of our nation and to pave the way to a truly new era, an era of progress and prosperity.
Seven-Point Plan for Economic Revival
Seven-Point Plan for Economic Revival
1.Titus Morvayne, Prefect of Shirekeep, Count of the Skyla Islands
2.Eki Aholibamah Verion, Queen in the North
3. Ludovic Verion, Lord of Blackstone and Governor-General of the Iron Company
4. Jeremy Harwinsson Archer, super sleuth
2.Eki Aholibamah Verion, Queen in the North
3. Ludovic Verion, Lord of Blackstone and Governor-General of the Iron Company
4. Jeremy Harwinsson Archer, super sleuth
Re: Seven-Point Plan for Economic Revival
The Council for National Unity declares the Seven-Point Plan the core document for the economic policy of the Republic of Coria. The Council wishes to thank the members of the Institute for Economic Revival for their work and their insights and will gladly accept their offer to continue to support the government with regard to economic legislature.
1.Titus Morvayne, Prefect of Shirekeep, Count of the Skyla Islands
2.Eki Aholibamah Verion, Queen in the North
3. Ludovic Verion, Lord of Blackstone and Governor-General of the Iron Company
4. Jeremy Harwinsson Archer, super sleuth
2.Eki Aholibamah Verion, Queen in the North
3. Ludovic Verion, Lord of Blackstone and Governor-General of the Iron Company
4. Jeremy Harwinsson Archer, super sleuth