EVE General Discussion

Seems workable to me.

It'd also be interesting to see a tax like corporation tax, but on all bounties/mission rewards etc in High. So you pay X percent to your corp and, say, 1% to Concord/Your local faction.

So you would nerf the cause of the inflation which would mean nerfing the 0.0/low isk income again...

Yea that logic is flawed.

How about this, Empires make you pay for all of the safety in the form of higher taxes, taxes that get lower depending on the sec status of the system. This would mean low sec would be much better for manufacturing and would reward those willing to take a greater risk.

@Reaganite theorist

The difference is that real life tax money gets fed back into the system. Eve NPC taxes disappear into nothing, reducing the money supply.

Oh so human nature and the laws of economics do not apply to a market that has real world supply and demand scenarios.

And I guess CCP was just was wasting their time hiring that Economist to study their in game economy.

Real world principles do indeed apply to this game whether you like it or not because human nature is involved to market of supply and demand. It behaves pretty similiary to the real world stock market and I think CCP did the right thing to hire a real economist to understand the issue.

Lastly, major econmists like Paul Krugman argue that inflation is not a bad thing and that you would rather have inflation rather than deflation...

http://www.nytimes.com/2012/04/06/opinion/krugman-not-enough-inflation.html?_r=0

Also you could argue the reason ships and modules are so expensive is not because of isk faucets but rather there is not enough ore to go around. You could solve the same problem by increasing the amount miners and the avaibilty of hi sec roids (who would want to do that though).

I'm going to argue that current mineral prices are a sign of a healthy economy. Miners make profits. Industrialist buying that ore make profit. Mission runners aren't poverty stricken. The price of plex is going down showing that there is a higher demand for isk related goods. And this all with free market principles with existing game mechanics.

Or are you space socialist wanting government handouts because things are too expensive for you?

Inflation is not the problem. Perception on prices is.

Even thought that money is destroyed, sellers are going to look at their mineral costs and the tax costs and say "Well in order to make profit with the tax I need to raise my prices by X amount" and therefore prices will go up across the board.

If you want prices to go down, then you need a supply side fix. As in pumping more minerals into the market and prices of production go down.

Then of course you make all the miners angry. Which is why I argue the prices are fine now. Inflation is not always a bad thing and is required for economic growth.

I mean just ask Japan on how their 10 year recession due to deflation is working out for them.

TBH the OP is providing a solution in search of a problem.

Actually we're dealing with classic hyper inflation.

The 'government' pumping money into the economy, without a rise in assets to go with that money.

That's where the imbalance is. Suck some of that money out (with taxes. because unlike real world taxes, that money is destroyed when it's removed), and you reduce the total quantity of money, in relation to the assets in the game.

So, the quantity of money / the assets in game becomes a more acceptable ratio, rather than the high value it is right now.

The costs of production exist. They are called minerals which have prices set by the markets.

If you are paying less for the materials then it means someone took my suggestion of increasing the amount of miners and minerals in the market.

People aren't going to sell minerals any less than they can get away with.

Unless you mine your own minerals, but as anyone tells you, you are cheating yourself if you sell your products below mineral prices because of the time it takes to mine it. (Opportunity cost)

Let's say I sell something for 100 that costs 90 to make. Then there is a 10% tax. Now if I charge 100 I only get 90 which is my mineral cost which is basically me wasting my time manufacturing. So in order to sell this, I find a market to sell it at 110 so I pay the 10% tax and still make my 10 isk.

If you aren't making a profit why in the hell are you making the product then? If there is a tax you must increase your selling price or get the hell out of the market.

The CCP Economist suggested raising taxes as a solution for inflation.

http://www.youtube.com/watch?feature=player_detailpage&v=7MZD6-vGQms


CCP Soundwave, the game designer, is trying to avoid doing it.

I agree with both in my own way. Tax High Sec more, to offbalance the massive benefits of high sec.

Nothing. There never was a President named "Regan".

Trying to apply rl macroeconomics 1:1 to Eve is ridiculous. At best it offers hints and insights, but suggesting a mirroring of actual policy is beyond farcical.