Inflation Bill
Posted: Fri Aug 22, 2008 2:54 am
Explanation:D. Distribution
1. Total Erb and it's movement.
a. The total sum of Erb in circulation shall be 50 000EUR.
b. Additional Erb may be added to circulation as required by the authority of The Kaiser or by Act of landsraad.
c. All Erb shall be initially issued from The Crown Account and distributed to other accounts as stated within this Law.
d. Additional distributions may be made By The Kaiser or by Act of Landsraad from The Crown account or by regular functions of the economy as stated within this Law.
e. The transfer of currency between two parties (either company or citizen) may be done so at will but remain subject to potential audit if required by The Kaiser, The Arbiter or by Act of Landsraad.
E. Distribution of Money
1. All new citizens shall receive 250 erb upon joining Shireroth.
2. A citizen who revokes their citizenship or is declared legally dead by The Kaiser or by Act of Landsraad will have their account revoked, and the balance returned to The Crown Account.
3. The Treasury is empowered to distribute the initial amount of Erb in part D.1.a between the citizens to place it in initial circulation. This will be primarily based on the current rank of citizens at time of issuing. The Treasury is not empowered to distribute further additional amounts issued under D.1.d.
4. a. The Treasury is empowered to distribute further money by means of paying bounties.
b.The Treasury is empowered to develop its own policy on this matter, but should primarily give bounties to those citizens who have helped Shireroth grow or develop.
c.The basic amount of bounty is set at 100 erb.
d.This amount or these guidelines may be changed by the Kaiser or Act of Landsraad.
5. The Kaiser is empowered to distribute further money by decree as he sees fit.
I. Taxation.
1. The Treasury shall be empowered to conduct national taxation with one weeks notice to the general populous. It announce its intention to conduct taxation when one of two conditions are met:
i. The Crown Account is under 5000 erb.
ii. Taxes have not been levied for a month.
2. The Kaiser may stop a tax after it is announced but before it is levied.
3. The Amount of taxation shall be 1000 erb from each Duchy. Where possible, this will be taken directly from the Duke zirself. Where the Duke has less than 1000 erb, this shall be taken from the richest citizen, and so on. Where the entire Duchy has less than 1000 erb, all the erb they have shall be taken, and it is at the discretion of the Ministry of Trade and the Kaiser about whether the remaining sum will be taken when it becomes available.
4. Dukes are empowered to conduct taxation within their Duchy in order to recoup their loss from the National Taxation.
5. The amount and timing of taxation may be changed by the Kaiser of Act of Landsraad.
Alright, Erik, Hesam and Mike are complaining there's not enough erb around so people horde it. They think we should put out more erb to make an individual one less valuable. At the same time, Scott and I are rather concerned by any plan which involves giving essentially limitless amounts of money to the Crown Account to distribute as it wishes, because if each month more and more money comes into circulation it erodes the value of the erb over time and we have inflation. So the compromise is this. We increase the amount by 10. We only increase bounties by 5 - so we're already effectively halving them. 'More than basic' bounties are now much more likely to be 150 or 200 (only up to double the standard) as opposed to up to 60 or 70 (triple or more) so that's also reduced. Bear in mind that when comparing values we should look at the amount of erb (%) of a bounty compared to the average amount each citizen should have (4% since we have 25 citizens). Or compare any given bounty to 2000, if we have 50 000 in circulation. If a bounty is 100 (and 200 if really good), it takes 15-20 bounties for a citizen to earn up as much money as two citizens ... IF that person isn't taxed and nobody else is earning money. The normal state of affairs should be the majority of citizens earn bounties, and everyone's taxed, so you have to work extra hard to make a net gain on your position.
Also, to avoid inflation, we pay the majority of money out all at once. That is, we inject about another 37 000 into the economy. This will be largely based on current rank (think of it as a once-off initial distribution that doesn't continue) but will also take into account how much each citizen has contributed to the economy and to Shireroth in general in the last month. This is a purely ONCE OFF thing.
After that, any talk of paying anyone other than new citizens money is abandoned. I added back in confiscating dead accounts (Scott deleted it by accident, I think), and also added in something which says Treasury's actually allowed to pay bounties (which we weren't legally before). And the Kaiser (which was assumed but also not legal). That bit can be expanded if we later agree on more guidelines, but will do for now.
finally, I *10'd tax. For the obvious reason that a sound economy without inflation rests on the government spending only what it gets in from tax, and not more ... but we do need to get in a reasonable amount of tax to do so. At this rate, even if we get in 2 new citizens a month, we'll still be able to pay out 45 standard bounties a month. So I hope everyone's happy.
, not like arguing with Erik and Mike ...