NationStates Jolt Archive


Economic Reforms in Wagdog (Poll, Open MT)

Wagdog
17-04-2007, 15:28
WIBC News One Special Report: Economy at A Crossroads...
"Greetings Comrades, Citizens, and friends the world over. I'm your host Poliana Bárique, and this is WIBC Evening News. Tonight, there is a special report of key importance to us all, which it is both my obligation and pleasure to give for your benefit as viewers and citizens.
"As a result of the ongoing Alexandrian Ptolemais Free-Trade Conference and the growth of Wagdog's economy both at home and abroad, a bill has entered into the National People's Congress that would drastically modify the current privileges our various State-Owned Enterprises enjoy. Here is how things currently stand, for the benefit of those perhaps unfamiliar with the practice of 'Market Socialism' in this nation...
"In the Wagdoggie economy, the State and Private sectors are on an equalized footing in what we term a 'free-and-fair market' governed by what laws are sensible such as safety and efficiency regulations. 'Equalized' being the operative word, since the State sector receives anywhere from 5-20% in corporate tax breaks annually depending on how profitable it is; the benefits varying per particular company in question, and the objective being to attract entrepeneurial talent away from the poorer-performing private firms into the better-performing State firms to inject proverbial 'new blood' into an economic sector known for its propensity towards stagnation if left unchecked. Given the massive arms contracts from the Stratorian Campaign and the ongoing Circum-Zansk War, Wagdoggie State Armaments Corporation is an example of a success story under this system due to making easily 20% in tax breaks a year from the near ceaseless demands of our armed forces for weaponry and supplies; even if much of it is indeed licensed from abroad, and thus profit being after accounting for royalties.
"However, some in the more-liberal sectors of Wagdoggie society have thought that this actually doesn't go far enough in the direction of a market economy, since the benefits are capped and there is no more than a 20% annual tax penalty for a failing state enterprise. Although theoretically such a company's State Charter could be voided and the corporation 'cast into the marketplace' in theory, few have this happen to them due to the tax penalty alone as some would like to see happen. Hence, reform bills are being discussed which would make State sector tax benefits or penalties completely free-floating in Wagdog, according to profit or loss just like in the private sector. The benefits could conceivably make a profitable State concern operate tax-free, but equally the penalties could conceivably bankrupt a State company outright and cast them down into the private sector at once.
"And what's more, coupled to the bills are various schemes for a flat union membership benefit instead of the current party-based system; where Social Democratic Party and Greenwood Coalition unions get 5% wage benefits for their members, People's Revolutionary Party and Noble Revolutionary Party unions get 10%, and Revolutionary Party unions take away 20% wage bonuses for their 'loyalty' to the ruling political faction by law. However, each party is divided on what the benefit should be, depending on their own principles regarding labor. Let's hear from some representatives from the various parties explaining their positions on these matters."

General Secretary Carolinus Horridus, Revolutionary Party
"Frankly, I don't particularly care what corporate-tax reforms get enacted, if any. I have a war to fight, people. That is my sole concern as Wagdog's Commander-in-Chief, since New Nicksyllvania has sworn the destruction of our nation and its revolutionary way of life, and the fight is not yet decided even if the Zanski Theater of Operations seems largely-stabilized for the moment.
"I can't honestly say I'm enthused about the various union-benefit reform issues either. Each of them is the labor-recruiting arm of their respective parties, and rightfully so too. But with that comes participation in the civil-yet-adversarial politicking that characterizes any healthy people's representative government, and so I feel it is not at all inappropriate to gauge a union's benefits to a broad assessment of it's reliability in building the Revolution and loyalty to the Revolutionary Party charged with executing said Revolution.
"However, my opinion is just that as far as our National People's Congress is concerned: Mine. If they pass any of these reform bills the various opposition parties are bandying about, I shall do my duty under the Constitution and sign the winning bill into law; since none of them are particularly offensive enough to require a veto or such and, frankly, I'd rather this issue were settled so I can get back to winning the war if we all don't mind. Muchas Grácias, Sra. Bárique."

Defense Secretary Mario Iliescu, Noble Revolutionary Party
"While our Esteemed Leader is of course entitled to his opinions, the facts are still the facts. Our State Industry functions just well enough, thank you. We do not need massive penalties for trivial economic hiccups giving the remnant capitalists in Wagdog an advantage! To do so would be a betrayal of Socialism, of the Revolution itself; by backsliding on the path towards glorious True Communism to come!
"And as for unions? Why? We are a proletarian society, Miss Bárique; hence, the whole State is supposed to function as a Great Union for all the workers! But, since we know abolishing this redundant system of smaller unions overnight is both impractical at present and beyond the scope of this debate, my Party could settle for a flat 5% union-membership wage benefit for all. That way, Equality is served, and yet the union bureaucracies are progressively forced to starve their budgets so that the rightful guardian of Workers' interests, the State, can progressively take over and safeguard the shining path to True Communism. A path we deviate from at our own peril, as the current pinko-policies of our weak-kneed Congress dominated by Elves and Mensheviks demonstrate, by attracting Fascists near to our very doorstep for the sight of our glaring weaknesses in Revolutionary Discipline..."

Treasury Secretary Wally Shortclaw, People's Revolutionary Party
"Although I agree with Comrade Iliescu that our State Industries are fine at present, and do not need to play Russian Roulette with their ledger sheets, he is sadly mistaken when it comes to the issue of unions. Without a mechanism from below where the common workers can speak to the State directly and collectively, our Socialist enterprise here in Wagdog risks degenerating into base Brezhnevite Revisionism and stagnation.
"We oppose the corporate tax reform, but equally we insist that no less than 15% in wage benefits go directly to the People and their local unions. The State should remain the primary vanguard of proletarian interests, true; but some benefits must go back directly to the People regardless."

Education Secretary Justina Stephens, Social Democratic Party
"Typical. Our Leader is pragmatic, which is fine enough, and then Comrades Iliescu and Shortclaw both parrot their respective stale Stalinist and Maoist tropes after him. So far the market has worked for Socialism in this country, not against it; and thus why not complete the process by letting State industries either profit or fail as they will? Those that survive, and I believe most will in fact, shall be both freer from regulation and stronger in entrepeneurship than ever before.
"And what of the workers? Aren't they the ones in whose name our Revolution even exists!? I don't think Comrade Shortclaw's 15% goes far enough even, since clearly he still wishes the State to be superior to the Unions in representing labor here. I ask you: Why can't the workers' protect their own interests? Is that not compatible with Socialism; with 'people's democracy', and even the oft-ballyhooed 'dictatorship of the proletariat' you all talk about? I say it is, and a 20% benefit for all that is equal to the highest current corporate benefits should serve 'the proletariat' best in enabling them to defend their natural rights themselves; leaving the State to defend the Revolution as a whole, as is only proper."

Secretary of State Sir Rilir Alárion nós Carthir, Greenwood Coalition
"One has a right to their Property and Labor, and the measures proposed are good steps to furthering those rights in this country. However, we feel that while the unionization benefits favored of the Noble Revolutionaries are too petty, the highest proposed risk giving the working community a false sense of its own security.
"In the end, they must earn that security for themselves, and a wage benefit of 10% and no more should be adequate to provide financial breathing space for this effort. We seek no greater a role for the State in the economy than it already has, which I among others in the Edhellen community and our human constituents feel is too much a role already, but we do concede that certain elements of that role should remain; and market forces shall decide which functions those shall be as is only fair."

"There you have it, friends and viewers; the positions involved, and the stakes at hand. As always, I'm your anchorwoman Poliana Bárique, and this is WIBC News Channel One."

OOC: Post if you've voted, please. I'd really like to hear all your takes on this issue, since I think this could get interesting here...:D