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by tikiman163
1468 days ago
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This game has some rather obvious flaws in terms of an economics simulator. Because the is only one product that means any changes to the price of apples is the inflation rate. Additionally, the demand for apples is basically fixed and 0% unemployment will guarantee a supply surplus causing the price to drop (immediately causing deflation). When deflation happens the only way they don't shut down orchards is if the interest rate is below 0%. If inflation hits more than about 5% all of the orchards shut down causing 100% unemployment. This model clearly assumes that if an orchard won't hit a predetermined ROI that it shuts down and won't re-open until it will get that profitability rate, but wages are largely unaffected by deflation, so the price of apples has to constantly out strip the operating costs of the orchard which are entirely variable. The econimc model here couldn't be more supply side if it tried. It's a perfect analogy for how Republicans think economics work. Either you subsidize businesses to guarantee high profits, or the rich people will instantly take their ball and go home, and everyone will starve. Businesses don't instantly shut down if they think they won't post a profit for a quarter. Seriously, Amazon literally posted a loss every quarter for its first 10 years and they stayed open through investment so people would receive dividends after they finished establishing the scale they needed. Whoever made this didn't put enough effort into thinking about the difference between a single product economy and real life. One market having a hicup doesn't cause 100% unemployment and a complete shutdown of all production in that market. This game fails to simulate a real economy for many of the same reasons the stock market rarely remains stable. |
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