Primer for tomorrow

(7/19/2008 10:13:00 PM)

Anthems: One Night in Beijing (Preferably sung by Zhou Jing)

Tian Xia Wu Shuang

Capital: 08S6H CT bench

Image 2: The capital of 08S6H, which isnt clean and green.

Main Spiritual Goddess: The living yet mysterious goddess "Sea-Tea"

Monarch: Her Royal Hignhess Jennifer Wu Shuang (a.k.a The One Whom Screams)

Image 3: Her Royal Highness Wu Shuang using her royal prerogative to demand her rights, following the first motto.

If you were wondering how the article so far is related to econs, the bottom shall explain it.

Gross Mark Product per Capita: 60

(Not very high, but relatively productive. Figures were obtained from the Chemistry Lecture Standardization Number 1)

Gross National Happiness per Capita: 8/10

(Evidently the plebians in 08S6H are relatively happy though they have to withstand the daily screams of HRH Wu Shuang.)

National Treasury Reserves: $300

Gross Domestic Product per Capita per annum: -$300

This isnt so happy. At this rate the budget will run dry very quickly.

Citizens of 08S6H, the treasury is being depleted! We must reverse this outflow of capital (Not the Factor of Production type of Capital, I mean the layman "capital" ie cash) at once! At the very least, we need to seek ways to refinance the class debt.

How should we do this? Obviously we must look at this using a Cost Revenue Approach.

For Costs, we must reduce TVC by:

• Lobbying the many spiritual gods and goddesses to reduce the amount of edicts issued daily from their hands. In return, we can promise to reduce the amount of sonic radiation produced in our attempts at offering sacrificies, which has sadly greatly incensed the said gods and goddesses.
• Intentionally reduce consumption. All peasants should from now on produce their own meals in order to become self-sufficient instead of going to a) The monopoly the Fish Tank holds or b) The Oligopoly the canteen vendors hold.

Notice that we cannot significantly reduce TVC, due to the lack of EOS the tiny nation of 08S6H experiences. Thus we should also buy in bulk everything we need, so as to benefit from EOS-Marketing.

Now for Revenue:

• The class should sell its services. As mentioned in previous posts, these include demolition work and power generation. Alternatively, we could all become slaves for a price. The price of such services is high due to the price inelastic nature and low supply curve and the high demand curve, leading to a high equillibrium price.
• We could always auction off all our CT benches and gain cash in the process.

Notably though, such ideas are inpractical as few want to become slaves, the benches are fixed factors of production which cannot be moved or sold, the gods/goddesses are intent on a biblical Great Flood of Paper and not all people want to diet. So we must move on to debt refinancing.

Right now, our nation relies on taxation of the peasants to fund the treasury and emergency bailouts. I propose that our class issue bank notes! Those bank notes must definitely have our HRH Wu Shuang's picture on them. Sadly, due to the lack of FOPs here, I cannot design the bank note, so I shall leave this admirable task to someone else (Specialisation of tasks remember? Leading to increase in efficiency and lower unit costs)

Such notes will thus have a definite value due to their limited nature. However the equilibrium price will not be high due to the lack of demand. Thus I suggest that the notes be made legal tender in 08S6H.

So, this leads to a win-win situation. The treasury benefits from seignorage, while the peasants enjoy lower taxes and also get to see the lovely portrait of HRH Wu Shuang at all times! Isnt this wonderful? So many birds killed with one stone.

Thus in conclusion, debt refinancing through the issue of bank notes is the best possible solution.