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What should we do with the Federal Surplus...

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Independence Hill
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Founded: Apr 03, 2018
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What should we do with the Federal Surplus...

Postby Independence Hill » Fri Jul 24, 2020 7:59 pm

Based on the math, we're running a budget surplus of []119.54 Trillion. We've stored our money in several vaults and, as of today, we have []861.51 Trillion. Once this money touches our hands, it's useless to citizens. We can't put it back, we can't spend it on good and services that will benefit our GRP (GDP) or our trade partners.

We adhere to a strict set of rules in measuring our economic activity to maintain foreign and domestic confidence. Once we stop our out-of-control surplus, we don't know what to do with the money that remains. It would be a shame to do nothing with it. We were thinking something along the lines of super trade partners- we would keep a set of books for products that are disconnected from common citizenry that are bought and sold between these trade partners. We would meet on a continuously run thread to keep track of these 'books.' What we need is a set of defacto standards that these super trade partners agree to. It would be ideal for those partners to measure their economic activity the same way we do. Each trade partner, to keep it simple, should only have one product to offer.

I'd like to hear other ideas.

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Tinhampton
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Anarchy

Postby Tinhampton » Fri Jul 24, 2020 8:04 pm

Can Independence Hill not even spend its surplus on things like debt repayment or increased funding for public services (if any exist)?
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Independence Hill
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Postby Independence Hill » Fri Jul 24, 2020 8:16 pm

We can't. We have no debt because there is no credit system in NationStates. All spending on public services is decided before surplus money touches our hands. After that, it can't be put back into the economy we see every day.

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Kyundao
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Founded: Jan 02, 2020
Right-wing Utopia

Postby Kyundao » Fri Jul 24, 2020 10:47 pm

Independence Hill wrote:We can't. We have no debt because there is no credit system in NationStates. All spending on public services is decided before surplus money touches our hands. After that, it can't be put back into the economy we see every day.


It never hurts to do tax refunds. That's what I'd do if I have no debt.

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Independence Hill
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Founded: Apr 03, 2018
Civil Rights Lovefest

Postby Independence Hill » Sat Jul 25, 2020 12:26 am

We would have no problem doing 'tax refunds.' The problem is that once the money gets to us via surplus, that's it. The flow of money from the private sector to the public sector seems to be a one-way street. We have much more control over 'futures' than we do with present cash. For example, we can chase policies that keep us in a trade deficit. Since there isn't a credit system, trade deficits are sustained by forfeiting the growth in purchasing power your currency would have otherwise produced. The other side of the coin is that inflation is stabilized.

Using the metrics of the NSDossier calculator and applying a little research, we learned that trade seems to be regionally isolated. Hermits do not import or export anything. As long as Federal and State Governments work together, we can keep prices, employment, and incomes stable for as long as we want. We can knock down all trade barriers so demand for imports stays high. At the same time, we subsidize business like it's going out of style so employment and cheap goods manufacturing stay on par with that demand.

We're doing our absolute best to cut taxes and meaningless spending. When the States are working in tandem with the Federal Government to cut taxes and meaningless spending, we found massive stimulatory effects followed the very next real day. Independence Hill counts one real day to be one year in NationStates with the exception of elections. Our elections run in close proximity to actual elections. Unless we cut the entire surplus, we're going to end up with money at the end. That money cannot be put back into the economy. We can't give it back in the form of 'tax refunds.' Once it's out of the economy it cannot go back in. To put it to some kind of use, good or not, we've applied for an account with Royal Bancroft. We're probably the only nation in the entire realm of NationStates who is using money that was actually produced (according to the game) by our economy.

We're working on becoming the most powerful economy in the entire game.
Last edited by Independence Hill on Sat Jul 25, 2020 12:42 am, edited 2 times in total.

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Of Zigarozia
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Founded: Dec 25, 2019
Inoffensive Centrist Democracy

Postby Of Zigarozia » Sat Jul 25, 2020 12:28 am

Pay your external debt?

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Independence Hill
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Founded: Apr 03, 2018
Civil Rights Lovefest

Postby Independence Hill » Sat Jul 25, 2020 12:30 am

We don't have any debt.

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Free Republic of Hong Kong
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Founded: Mar 26, 2020
New York Times Democracy

Postby Free Republic of Hong Kong » Sun Jul 26, 2020 5:10 am

Buy lands and spend it for costly wars
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Kyundao
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Posts: 203
Founded: Jan 02, 2020
Right-wing Utopia

Postby Kyundao » Sun Jul 26, 2020 5:12 am

Free Republic of Hong Kong wrote:Buy lands and spend it for costly wars

That doesn't sound too bad actually.
Last edited by Kyundao on Sun Jul 26, 2020 5:12 am, edited 1 time in total.

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UniversalCommons
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Founded: Jan 24, 2016
Left-Leaning College State

Postby UniversalCommons » Sun Jul 26, 2020 3:18 pm

Put it into research and development grants for companies and universities with all kinds of stipulations (advance your science). Reduce costs of education and training to near zero. (advance education) Buy off disputed border territories, start a Peace Corps, start a Voice of America type program. (Reduce hostilities). Build monumental programs-- space program, public monuments, parks programs. (keep people happy.) Generate more surplus by giving it out as low interest loans to start businesses (SBA Small Business Administration). Use it to build enterprise zones and encourage international trade. (Ministry of Trade), Modernize your infrastructure (highways, bridges, waterways, smart cities, etc.), Expand your military. Build special function buildings, community centers, libraries, extra fire stations. Government is infinitely expensive... There is always someone in government who wants money... My favorite is use surplus to generate more surplus-- use the surplus to make it easier for greater employment and expanded business, thus generating more surplus.
Last edited by UniversalCommons on Sun Jul 26, 2020 3:21 pm, edited 1 time in total.


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