Fwurg

[Mercury]

A recession has hit the Union, causing significant damage to the economy. From this turn onwards, recession will cause income from tax sets to be lowered and open market prices to worsen. The main effect of the recession on your world can be ended by purchasing a stimulus package. Once the recession ends, open market prices will return to normal (barring other economic events).

Special note: even if you did not sell weapons, your economy is still affected by the recession!

Cost of the Recession

A set of 3 products remains at a value of 1 , a set of 6 products will bring 2 (instead of 3), a set of 9 products will bring in 4 (instead of 6) and a set of 12 products will bring in 6 (instead of 9). To process this in your turn report, simply look at the number of tax sets you produce and remove from your income 1 for each 6 set, 2 for each 9 set and 3 for each 12 set, adding this as an additional expense in your turn report like so:

___ lost to economic recession

Additionally, the open market price for goods being sold will be cut in half. I processed this already on the open market page and the tools should thus be automatically updated.

The recession cost applies only to current players. New players are unaffected, though they still suffer from worse open market prices.

Stimilus Package

The recession will likely continue for some time, but the main impact can be resolved by completing a new project: the stimulus package. Completion of the stimulus package will remove the recession cost and you will no longer have to pay to the recession. The open market prices will return to normal (and the recession will end) when all players have completed their stimulus package.

The cost of the Stimilus package depends on the size of the economy of the world affected. The price of the stimilus package for each world is listed below:

• Astai Republic: 5000
• Astrian Colonial Authority: 3000
• Hiocan Society: 2000
• IO Protocol: 3000
• Praetorian Empire: 7000
• Sundarian Federation: 5000
• Tepogrenaian Consensus: 2000
• Unified Republic of Darya: 5000
• Veolian Commonwealth: 5000

Rational

During the weapons event, 11721 were sold to the black market for a total profit of 29302.5 . The factor I threw onto this was 1.25, so the total cost of the recession is 25% more than the profit of the event, which I rounded up to the sum of 37.000 .

The total cost was divided amongst the player worlds by ratio of economic size, with rounding to blocks of 1000 . The economic size of worlds was estimated using their total possible production.

[RemcoSwenker]

that was not a stuble change. and you can also change your taxes becasue they are based on your taxable income so your calculation is not as simple as you think mercury.

[Gerben]

Is this reduction in income due to the recession applied before or after taxes?

[Stuiter]

As Remco says how come the Hiocan Society is as big as the Tepogrenaian Consensus?
Furthermore as my system was not influenced and cut off by all trade I think a lesser Stimulus should be made as I am already screwed by not being able to trade.

[Mercury]

The Hiocan Society is as big as the Tepogrenaian Consensus as they have roughly similarly sized economies. The economic size of worlds was calculated by their total possible production from zones. This is a rough estimate, but it gives a reasonable insight as zones are the primary means to generate value. One may argue some zones are more valuable than others, but that is speculative while total possible production is objective.

I agree that the estimate is not perfect. It is however the best objective means I could come up with, based on the information available. Looking at each world, I found the following values, which should give you an indication as to why different players get different values - the total cost of the recession are divided by ratio (with rounding to the nearest 1000)

• Praetorian Empire: 20095
• Veolian Commonwealth: 16005
• Sundarian Federation: 15900
• Unified Republic of Darya: 15565
• Astai Republic: 14565
• Astrian Colonial Authority: 9535
• IO Protocol: 7930
• Teprogrenaian Consensus: 7595
• Hiocan Society: 7410

The Hiocan Society and Teprogrenaian Consensus are almost identical in size, so they have the same cost for their stimulus package. Arguably, the IO Protocol might also be at 2000, but they are unlucky in terms of rounding to the nearest 1000, so they have to pay more.

Now as for the lower stimulus package price for the Hiocan Society: I won't lower the cost of anyone's stimulus package. The point of the event is that the cost created by those who profited from the weapons black market event are distributed amongst all players. It creates an interesting choice(tm): do you take profit from the black market, at the expense of all players, or do you choose not to?

Some players chose to profit at the expense of others. Some profited very greatly from this.

With my reasoning and calculations explained, let me add this: the Hiocan Society has a point that it is suffering greatly under the war and now the recession. However, I do not think you should be coming to me as storyteller about this: Various Union members have already showed their willingness to help shoulder these burdens (the IO Protocol offered to pay all lost profits from the blockade, for one). And some Union members have profited greatly from the black market deals even taking the recession into account.

Given all this, have you considered asking the Union for help?

[Mercury]

Taxes are applied over total income from tax sets (since it is lowered, you will probably pay less tax). This may have future consequences for the Union Budget. Brend has kindly suggested he can fix the tax tool to account for this.

[Stuiter]

Now I need indeed help as my economy is now completely grounded..

[RemcoSwenker]

stuiter I am now at -27 tax if I don't ask for war funds for my fleet.

you are not the only one who is in big trouble right now.

[Stuiter]

War is expensive.

It is just that after finishing the big projects I wanted to get going economically and then the war hits.
I now just recovered somewhat by adjusting my economy and now I am 5 turns stuck in recession.
It is just frustrating that you cannot make any progress.

[Brend]

I have discussed this (and other events) with Mercury, and we have agreed that the actual value of the tax sets is lowered. This means that your taxes to the Union are also lower.

On another note:

I will be updating the tax tool to incorporate the changes to the economy for this event. I will do so tomorrow evening.

[Brend]

As promised, I have updated the tax tool. This will most likely require you to refresh your cache!

I have added the following economic directive to each of your bookkeeping pages:

Code: Select all

<data economic_directive #Recession>
System_ref: YOUR SYSTEM HERE
Directive: Recession
</data>


Once you have paid the stimulus package, and your report has been approved, you can remove the directive. You can see an overview on the Recession overview page.

(In an effort to save you all time, I have tried to add the directive in a logical place. If I couldn't find one, I added it to the top of the page. Feel free to move it about ^_^)

[Chriz]

What is the share of the NPC's in the recession? Do they have equal cost?

Without having a number we can not do anything with our ministries because the NPC's will be a roadblock.

Can we say that the NPC's together will also have 37 000 in stimulus packages. Which means that if the Union gives to the members, the PC's will only receive 50 %?

[Mercury]

What is the share of the NPC's in the recession? Do they have equal cost?

Without having a number we can not do anything with our ministries because the NPC's will be a roadblock.

Can we say that the NPC's together will also have 37 000 in stimulus packages. Which means that if the Union gives to the members, the PC's will only receive 50 %?

There are 22 worlds in the Union, of which 10 are PC's worlds (including one Minor world). Given that this is very close to the 50% line, I'll keep things simple and support the 50% suggestion as written.

[Brend]

I wrote a story page!

I have also reverted the Open Market tool to its pre-recession rates.

(I also marked this thread as done)

[Brend]

Where's our reward?!

[Mercury]

Its on the wiki!