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In this example we will be using GBP as the unit of currency and will not be using actual market prices.
Lets say that there is 10,000GBP in the economy and there are 1,000 products being produced; This puts the average product value at 10GBP (10,000/1,000).
Now lets say that the government print another 10,000GBP, this puts the total amount of currency in the economy at 20,000GBP which in turn means that the average product value is now at 20GBP (20,000/1000).
Of course, now that there is a lot more money to go around, people are going to be more willing to spend it and the suppliers of the products are going to raise their costs up so that they don't lose out.
So lets put this into a scenario:
- I work and get paid 50GBP per day, I spend that 50GBP on 5 pieces of food (Assuming that products are all selling at the average value which is 10GBP).
- The government put another 10,000GBP into the economy which brings the total up to 20,000GBP. Now there is twice as much money going around as before.
- Now due to the extra money going around, my wages get put up to 100GBP. Yay! But then the prices of the goods are also now selling at 20GBP each.
- So now I am earning 100GBP per day and buying 5 pieces of food for 20GBP each.
So as you can see, although there is a lot more money in the economy we are essentially just earning more and paying more. On the face of it, it looks like we have more money but the value of that money has decreased. 20GBP after the money being printed is the same value as 10GBP before it was printed.
It might help to think of this using other currencies in the real world, if you think that 1GBP is about 130 Japanese Yen. We might spend 1GBP on a chocolate bar and they might spend 130 Yen on the same chocolate bar, although they have spend "more" on it, the values of a single piece of the currency is different.
Of course, there are a lot of other factors when dealing with economics and this is barely scraping the surface but it gives a basic idea anyway...
I hope you can all understand what i've written here, to be honest, near the end I was just typing stuff and it probably doesn't make any sense at all but I hope you can decode it.
So yea, a bit of a change from my normal articles but there we go.
Goodbye my lovers.
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About the game:
USA as a world power? In E-Sim it is possible!
In E-Sim we have a huge, living world, which is a mirror copy of the Earth. Well, maybe not completely mirrored, because the balance of power in this virtual world looks a bit different than in real life. In E-Sim, USA does not have to be a world superpower, It can be efficiently managed as a much smaller country that has entrepreneurial citizens that support it's foundation. Everything depends on the players themselves and how they decide to shape the political map of the game.
Work for the good of your country and see it rise to an empire.
Activities in this game are divided into several modules. First is the economy as a citizen in a country of your choice you must work to earn money, which you will get to spend for example, on food or purchase of weapons which are critical for your progress as a fighter. You will work in either private companies which are owned by players or government companies which are owned by the state. After progressing in the game you will finally get the opportunity to set up your own business and hire other players. If it prospers, we can even change it into a joint-stock company and enter the stock market and get even more money in this way.
In E-Sim, international wars are nothing out of the ordinary.
Become an influential politician.
The second module is a politics. Just like in real life politics in E-Sim are an extremely powerful tool that can be used for your own purposes. From time to time there are elections in the game in which you will not only vote, but also have the ability to run for the head of the party you're in. You can also apply for congress, where once elected you will be given the right to vote on laws proposed by your fellow congress members or your president and propose laws yourself. Voting on laws is important for your country as it can shape the lives of those around you. You can also try to become the head of a given party, and even take part in presidential elections and decide on the shape of the foreign policy of a given state (for example, who to declare war on). Career in politics is obviously not easy and in order to succeed in it, you have to have a good plan and compete for the votes of voters.
You can go bankrupt or become a rich man while playing the stock market.
The international war.
The last and probably the most important module is military. In E-Sim, countries are constantly fighting each other for control over territories which in return grant them access to more valuable raw materials. For this purpose, they form alliances, they fight international wars, but they also have to deal with, for example, uprisings in conquered countries or civil wars, which may explode on their territory. You can also take part in these clashes, although you are also given the opportunity to lead a life as a pacifist who focuses on other activities in the game (for example, running a successful newspaper or selling products).
At the auction you can sell or buy your dream inventory.
E-Sim is a unique browser game. It's creators ensured realistic representation of the mechanisms present in the real world and gave all power to the players who shape the image of the virtual Earth according to their own. So come and join them and help your country achieve its full potential.
Invest, produce and sell - be an entrepreneur in E-Sim.
Take part in numerous events for the E-Sim community.
