Business And Economy Archive

Thread: Time to look at the Currency!

Reloquad
Fri May 27, 2005 11:03 am
#1



Ok I have been away for awhile and let me say the state of the money supply is way out of hand.


I believe there is a way two settle this issue. Stocks can actually have reverse splits (usually bad for the company).Now take this idea into the game. Each server may have a different split. For instance I'm on lowca with my 100 million credits (maybe in my next life time) and they introduce a 10 for 1 reverse split. So now I have 10 million credits.


Now your favorite weapon that sell for a cool millon goes for 100k. etc.


This calms down inflation and decreases the amount of credits on the server. I would also hope this may help the servers some as well.


Any thoughts on this?



--------------------------------------------------------------------------------------
Jebb Lonemech
-Lowca

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Spence_Ray
Fri May 27, 2005 1:36 pm
#2

My vote is for a Tax on money in your bank account. Make it something like 5 all the way up to 20% per week based off of the amount of money in your account.



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CharPrime
Fri May 27, 2005 1:43 pm
#3

how is this going to do anything? dropping a zero for looks? you still have the same buying power as before



Vendor location kor vella -2931 1721.
Drop of vendor location kor vella -2897 1698

RIS quest and set completed on 6-12-04,

Pawlin
Fri May 27, 2005 2:40 pm
#4


There is NO long term game wide economic inflation. High prices on specific items (e.g. faction armor or good tapes) is only caused by high demand and low supply. Thats capitalism at work.


Simply cutting peoples bank accounts down wouldn't do anything but take away money from people who earned it. What would that accomplish? The rich would still be rich and the poor would still be poor. Supply and demand will still set prices. All that cutting bank accounts would do is take something away from people. You may as well take away our skills or loot too.








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oscabegra
Fri May 27, 2005 6:41 pm
#5

Worst idea ever






Osca

AudioOrgana
Fri May 27, 2005 10:08 pm
#6

LOL from the mouths of babes.

It might make poor folk feel better, but it's not a soloution - the poor folk would have their credits reduced as well.

Just stop being jealous of rich players and instead of looking for silly ways to make yourself feel better just get rich yourself.

If this was the "real world" I'd never say such a thing, because the situation is very different; but it's a freaking video game - anyone can do it.

Find a need ---> fill the need ---> get rich.

People do it all the time. The first 100 mill is always the hardest...after that it gets a lot easier.

AO
oracomm2
Sat May 28, 2005 12:50 am
#7

if you feel there is too much money in the game... then let me suggest you give me all your money, I'll hang on to it and you can consider it out of the game.


Seriously thoyou know how many people will scream bloody murder if they did this? the Best way to take cash out of the game is for the devs to crank up the maintenace fees on items in the game.Houses, harvs( eventhis will cause peopleto scream)


and/or


creat new items in game example a fancy dancy new rug or wall hanging that can only be bought from some NPC for a heafty fee.









Flatfingers
Sat May 28, 2005 11:55 am
#8




Reloquad wrote:



Ok I have been away for awhile and let me say the state of the money supply is way out of hand.





Reloquad, I'm curious: What makes you think the money supply is too high (i.e., is causing inflation)?


Is it that prices for some items seem higher than you remember? If so, how do you know that isn't being caused by fewer of those items being available now?


We've beaten up the subject of "inflation in SWG" before -- the thread THERE IS NO INFLATION!! debunked that claim pretty thoroughly. As a shortcut, take a look at the Economy Stats essay that SWG designer Raph Koster wrote for us a while back. It's a little dusty now, but the principles still hold: the devs have a boatload of economy-tracking tools that they canuse toassess the stability of the player economy. And they have plenty of "faucets" and "drains" that they can modify to tweak the economy if either inflation or deflation starts creeping in.


Don't panic.


--Flatfingers


P.S. It's worth briefly adding to what others have said: decreasing the inputs, outputs, and current amount of money in SWG wouldn't actually solve inflation (if there actually was inflation). If today, 100 credits buys an item that everybody generally agrees is worth 100 credits, andthen tomorrow all money sources, bank accounts, and money drains all get cut by 10... nothing changes. The item hasn't increased or decreased in value; it still has exactly the same utility today that it had yesterday.The only difference is thatinstead of costing 100 credits, now it's going tocost 10 because that's all people have to spend. A credit today is worth exactly the same as a credit yesterday because the perceived value of the items being bought and sold haven't actually changed. Theaverage priceof that 100-credit item would drop to 10 credits within a week... and we'd be right back where we started.


SWG's a little like a real-world economy in that characters can earn money, characters can make things to sell for money, and there's a market on which things can be sold. So controlling the supply of money (as well as the ways that money is taken out of the economy) does matter. But SWG's economy is also significantly unlike a real-world economy in that we don't have to worry about unemployment, and it's a lot easier to control the amount of money exiting the system. So if anything, SWG's economic controllers are uber-monetarists.


Milton Friedman would be proud.


(If you likethis kind of stuff, check out the U.S. Economy vs. SWG Economy thread.)

CharPrime
Sat May 28, 2005 3:26 pm
#9






HairlessWook wrote:

this is not communism were everyone is equal, this game is a highly capitalistic democracy wherein we have the have and have nots.






got that right.



Vendor location kor vella -2931 1721.
Drop of vendor location kor vella -2897 1698

RIS quest and set completed on 6-12-04,

HairlessWook
Sun May 29, 2005 12:06 am
#10

Taxing currency, splitting money...all irrelevent. The only way to bring down pricesis for the dev's to increase drop rate ofuber looted items but, this defeats the purpose. One thing I will say is GDK's, Peko's, GKH's, WHB"S, Krayt scales, Krayt tissues and etc. should drop in larger stacks this would balance supply and demand so RIS sets and Uber rifles aren't millions...but then again we are defeating the point. There has to be something to work for or why play the game. There is no answer...this is not communism were everyone is equal, this game is a highly capitalistic democracy wherein we have the have and have nots.



Nelorr
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AudioOrgana
Sun May 29, 2005 12:54 pm
#11



CharPrime wrote:


HairlessWook wrote:
this is not communism were everyone is equal, this game is a highly capitalistic democracy wherein we have the have and have nots.



got that right.





And ain't it fun?

AO
EdOWar
Mon May 30, 2005 7:58 am
#12






AudioOrgana wrote:





CharPrime wrote:





HairlessWook wrote:

this is not communism were everyone is equal, this game is a highly capitalistic democracy wherein we have the have and have nots.






got that right.







And ain't it fun?

AO





It's basically why I play SWG.


Slim Vargo, Corbantis


DigitalOne
Tue May 31, 2005 4:49 am
#13


There is a really good book out there for all you people who cant handle free market without pissing yourselves. "Capitolism for Kids" by Karl Hess, seriously this book has been a godsend, its pure unadulterated information that any moron such as myself can understand and take advantage of. I used to be a card carrying communist until i read that book and started playing this game, now i dont even give money to the poor anymore. Man, capitolism is HOT, rawr.


You can also read the wealth of nations by adam smith, but it helps alot if you find 18th century british agrarianism facinating. David Ricardo, history of political economy and taxation is also cool, and opens you up to the world of poltical economy, and all of a sudden you will realize what sociology is for.You would would be supprised how much of a capitolist Marx is if you read anything other than his manifesto or his 1844 manuacripts. And once you start getting into Friedman, things really start geting sexxy.


That being said you might aswell just read capitolism for kids.
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