[Blog] Who's Responsibility is it to Handle Inflation, and Who's Responsible?

Discussion in 'Community Discussion' started by PenguinDJ, Oct 16, 2014.

  1. Hello Empire,

    I thought I'd write some sort of a blog/thing to (hopefully) spark a discussion within the community. Note that I'm not too familiar with the topic of the economy, but I'll give it my best shot. We all know of the inflation of the economy now. Prices are soaring with no sight of coming down. New rupees are entering the economy with every new player, which just puts more money into the hands of the shop owners. Inflation is defined as a general increase in prices and fall in the purchasing value of money. This fits the first part of the definition, "general increase in prices." Diamonds are up to 72-73r per, on the low side, and, as I previously mentioned, thousands or rupees are entering the economy daily. Recently, when I purchased my third account, I was greeted with a friendly sum of 13,000 rupees. Back when I joined, nearly 850 days ago, I picked up around 1,500.

    But why is this and why do I think it's this factor that's causing this problem? Well, it's a lot of supply and demand. With the surplus of new members and an overflow of rupees, resulting in a higher demand and a lower supply for items, price can increase and people will still buy the items. Consumers will always buy the cheapest items first, and then, after all of those shops are sold out, the only choices are to buy the expensive items or to mine them ourselves.

    So who's responsible? Well, I think the Empire is, and that there are too many rupees entering the economy. Now let's look at the second part: "[a] fall in the purchasing value of money." And, well, it's simple economics and basic math to understand that more rupees equals a lower value. In the views of most Americans, there's an economic problem right now, and one possible reason is because there's more money being produced than destroyed. Money will only lose value when there becomes more of it in circulation. And, well, 13,000 rupees per player is certainly something awful.

    So what can we do? Well, it's really hard to do anything. But what I think can be improved is, give new players less rupees from registering. Those 13,000 rupees were from, get this, signing up on the forums. Such a simple, thrifty-second task got me 13,000 rupees. And thousands of other players have gotten such bonuses, too. Perhaps 5,000 rupees is good. Maybe even six or seven thousand.

    But these prices are insane, and they're on the rise. It's up to everyone to mine their own diamonds! Free diamonds for everyone! Well, no, unfortunately I cannot give out free diamonds. But, vote. Please, vote. For the love of voting, vote! Voting gives you diamonds, and if you take that 140r out of every shop owner's pocket every day and keep it in yours perhaps it'll encourage lower prices.

    Well, that's my blog/suggestion/rant/discussion sparker. Um... I hope you liked it.

    Olaf_C likes this.
  2. Do nothing =) Inflation isn't a bad thing.

    The only thing thats happening is the SCALE of the economy is shifting, that is 100% the goal. It enables shop owners to be more competitive with pricing.

    You only have a problem with inflation if the prices rise but the ways to earn money doesn't, creating an issue of "only the rich can survive".

    But, we're not having that problem, so clearly this is VERY healthy inflation. New players still end up spending all of the initial money, creating intense demand. It's very healthy.

    There is an older thread somewhere about my goal to intentionally cause this inflation where the community agreed by poll, and were just slowly inducing it.

    Then there was a recent thread about the inflation too where I talked about why its not a bad thing.
    wipple5 likes this.
  3. Wish the rupees we know at the moment soon are worth 100x less in the future, it will be SOOO much easier to make shops :p (or decimal rupees!)