User:Pelicary/sandbox1

Personal outlook on the economy of Altverse. I've recently began looking into economics because it interested me. I will be looking at each nations economy and has no standing in RP. It will be a personal journal and I will be generating statistics on nations to appease realistic situations of real and historical nations.

Sierra
Kingdom of Sierra in its economic description says its had a 4.4% per capita increase in 2010, which if this trend would continue, perhaps with some hiccups along the way it may look like this.

2010: 4.4

2011: 4.6

2012: 2.4

2013: 4.8

2014: 4.5

Now looking at GDP per capita, typically we all automatically think that the overall increase of GDP could seem good and everyone is getting their fair share- but it should now be compared with the economy that Sierra runs off of and who they are it might be detrimental.

It's real life counterpart, California is a giant in the US economy, having a 46,029 GDP per capita in 2012 (which in 2015 would be moderately a little higher) is a almost a close similarity to its Sierra GDP of 50,000. But of course the US dollar and the Sierran dollar would not be comparable, if anything the Sierra dollar would be more powerful (which isn't always good.) Without California and its large amount of 663,394 millionaires, the US GDP would dwindle. It gave up several mostly productive midwestern and western states and took up the Southern states, but with the East Coast would level it out, but its still lower than its current 53,000 GDP in 2013.

Within the article it states "The largest large business employers are Sierran companies while the largest foreign business employers come from the United States." Of course it never says how many it employs. It also says by predictions it will surpass Japan by 2025, which means outlook from within asserts that the faith is good with the Sierran economy. Here is my beef with the economy of Sierra.

Its a getting ripened for a (yes a circus), lets all take a ride on the merry go round. Within the article it said it wasn't effected much by the financial crisis in 2008. But it will have its own collapse soon if something is not changed or revised.

Its low unemployment, high pay, continuous growth is a great sign of inflation- which would already be much higher than its 1.5%. Due to the fact that Sierra does not have a CPI all to itself. Soon when companies and investors realize that their money won't be valuable (within Sierra at least) they will go into and at the point you can't see the bottom.

Its also hard to see the labor force occupying 42.7% of industrial services. Its exports are said to be going to the US, China, South Korea, Canada and South Vietnam (Wabash is somewhere in there) And specializes "...especially in automobiles, telecommunications, electronics, and chemicals." Which are great things to produce for a well developed country- but you wouldn't be selling these things to countries where the GDP is nearly half of yours and the United States would be forcing Sierra, Wabash and China to compete in these fields to try and get the best price. In respect to Wabash, I determined that after the coup it would be in financial issues, including loss in faith of the market, while in 2015 its been showing stability. Sierra could of filled in that role from 2008 to 2015, but with competition with China several things would be hard. Sierra would have higher prices abroad and domestically- making it hard to compete with China. Sierran's would also be importing more (because their currency is powerful around the world- well for now) rather exporting. Countries would have a hard time buying Sierrian goods because compared to their currencies, it would be costly.

Here is a pretty graph



This shows increase, which is the reason GDP is pretty high, employment tries to compensate workers higher when prices rise- or it might be the opposite. When workers are paid higher, prices rise. When this happens to quickly- or faster than your primary trading partners you have an issue.

But Sierra is not the only country in which there is superb numbers, almost every country does it (even me). It would be very interesting to fix with a in-game solution for many countries. This is my first observation and I'm no expert, but I'm trying to learn- so I might be so so wrong.