Elneconomics

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Elneconomics

Post  Berserker on Thu May 31, 2018 10:52 pm

"It's the economy, stupid" - A famous president

The basics

Due to Elne being a rather small-scale economy with a single currency -  the oddly named throngiz, so named due to originally being the dwarf currency that later came into use by other races as well - its economy is quite simple, with only select wares being subject to import or export taxes, such as Yldean goat cheese and pumpkins.
As with any other economy, prices on select wares tend to vary quite a bit based on a number of factors, such as where it's sold, current supply and demand, and so on, but to get a better impression of the currency and the value of money, please consult the table below.

Average industry worker's wage per hour: 11,5 throngiz
Average railway worker's wage per hour: 12 throngiz
One loaf of bread: 4 throngiz
One ton of refined steel: 2 235 throngiz
One ton of iron ore: 780 throngiz
A spanner: 22 throngiz
One fully functional, heavy-duty steam locomotive, equipped with the most modern technology: 540 932 throngiz
One cow: 102 throngiz

Throngiz
The currency throngiz is distributed in coins, and its value constantly adjusted based on the development in the market; as such, it has no static value, but its values rarely go too much up and down, so prices of wares change more based on the availability of said wares than the currency itself. The smallest coin is 1 single throngi, whereas the largest is as grand as 1000 throngiz.

For particularly large transactions, a bank is normally involved, and instead of physically moving all those coins from one place to another, the bank simply records the transaction. When two or more banks are involved, however, a money transport takes place, wherein a number of armed guards accompany a highly secure wagon from one bank's vaults to the other.

Recent development


Elnean economics are significantly more advanced than those of Kayre; a natural development considering the also more advanced civilisation found on the continent. Nonetheless, it primarily follows the basic principles of all economies, of which the most prominent is supply and demand.

However, due to the magic crisis currently in motion, Elne's economics have changed rather dramatically. The dwarfs have made tremendous profits off crystal-forging, which has made Narhel quite wealthy, and the overall increased buying power of dwarfs have caused a price hike on goods the dwarfs produce and use themselves; dwarfen steel in particular is very costly in human lands, thanks to dwarfs being able to outbuy most humans. Unsurprisingly, this has led to good times for human steel mills, producing steel of lesser but still serviceable quality, and created a greater demand for ore and coal, which in turn has led to greater wealth among miners and mining companies. With more goods to transport, the Locrian Public Railway, state-owned as it is, has improved their profits, and thanks to the overall low wages in Locria, all involved companies have seen their turnover, as well as their profits, improve a lot.

This has led to an overall increase to the supply in the steel business, leading to the rather ironic development of steel becoming cheaper now than it was when the dwarfs supplied the majority of it. Even then, human steel mills make a much better profit now, as they produce most of the steel used in the three human lands, rather than only cheap steel used by businesses unable to afford dwarf steel. Nonetheless, with cheaper steel and supply aplenty, businesses such as those constructing steel machines, railway rolling stock, guns, tools, the lot of those using steel have been able to improve their profits as well, as they obviously choose to improve their profits over reducing their customers' prices. Thankfully, Locria's government have worked hard to ensure multiple companies thrive independantly of each other, to ensure competition prevents a too steep price hike.

Normally, one would think steel prices hardly made a difference to food prices, but it turned out those two are connected to one another, as well as practically everything else. Thanks to the higher profits of the steel business, as well as the mining business, the workers in that business have been able to grab themselves a small, yet still tidy payrise, thanks to the near euphoric state of their companies' directors, and that payrise has particularly been spent buying food for families that no longer go slightly hungry, but instead have been able to eat their fill. The demand for food thus increased, which - under any circumstances where transport is not an issue - would lead to an overall price hike, making food more expensive. However, transport always comes into the equation, because no one in their right mind builds a farm right in a city's industrial area. Locria in particular has always had a scattered population, with farms and towns all over the country, and thanks to the increase in freight transport on the railway, as ore and coal to greater extents were transported towards industrial areas, the farms, as well as bakeries out in the countryside, saw themselves able to easier transport their wares too, as the trains could simply pick up the goods along the way. Thus the supply also improved, once again balancing out with the demand.
Such is the case in most industries in Locria these days; with steel as the great catalyst, other production industries have seen their demand increase as well, but most industries have also seen an improvement in supply, leading to the slightly bizarre conclusion that despite - or rather, because of - the balance between supply and demand being upheld, the economy's on a sharp rise.

Truly, nothing causes harmony and wealth for all the way impending chaos does.
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