NationStates Jolt Archive


The Peoples Freedom Economy Reaches Critical Point

The PeoplesFreedom
23-07-2007, 22:17
In Liberty City, widely known as the corporate capital for TPF, rose a skyscraper, rising more than a hundred stories, its glittering glass and cornucopia of lights identified it as one of the best known skyscrapers in the world. In fact, Smith Tower, as it was known, had barely been standing for twenty years, and it was one of the most visited places in the world, with millions of tourists touring the offices and watching the beautiful and bustling city from the observation deck. It was bought for nearly one billion Reichsmarks by Green Consulting, which published the prestigious Gold Magazine, which lead the nation in economic matters. Stock Brokers invested in the what the magazine said to, and stayed clear of what it said to not invest in. It was also widely exported, and many foreign investors looked to it when deciding what to invest in in TPF. That is, if they ever invested. It was nearly impossible to do so, it was simply too expensive, and the risk to great. This was part of the reason that the TPFian economy was stagnating, much to the sorrow of the publishers, who, in their latest issue, would seek to turn it around, before it stagnated. This however, was no easy task, as they had a variety of issues to deal with, some were easier then others. These talking points were posted at every writers desk, looking something like:

1. Automobile Industry
2. Foreign Investments
3. Mining
4. Heavy Industry
5. Information Industry
6. Government Control
7. Cheap Labor

The Automobile industry had been the defining industry for TPF. However that industrfive trillion Reichsmarks, it accounted for a large percentage of the national GDP. And in the last ten years, and especially in the last year, it had been struggling. It was the giant to the north that was killing it. The high tariffs that protected the industry did not apply to Wanderjar, and it was flooding the market with cheap cars. In addition, the hold the industry had had on the foreign markets was also falling, and while not as dramatically, it had failed to reverse itself. All this had forced the companies to lay off their workers, raising the unemployment rate from 2% to 6% in the first year of cuts alone. And with no welfare, the crime had also increased. This year looked no better, as more automobile companies prepared to lay off more workers, replacing them with machines, or even doing without. There was even some talk of outsourcing, which made everyone cringe, for if that started, it would spell doom for the economy.
Then there was Foreign Investments of which there was virtually zilch. The government made it too hard and too expensive to invest, and thus foreign money could not off-set the money being lost as the automotive market continued to do badly. Gold Magazine firmly believed that the tarrifs would have to be removed, to allow investment. And everyone knew that investors DID want to invest, as TPF was full of factories ready to churn out products for them, and also had a decent pool of cheap labor. If the tariffs were removed, Gold Magazine believed it could off-set the automobile industry and thus turn around the stagnating economy.
Then, there was the mining, mines were closing rapidly, not because they were running out of resources, but because the Unionized miners had such high wages that they were bankrupting the mines, and they forced the prices to go up for raw materials, which the Automobile and Heavy Industry needed. This ties into the next point, Heavy Industry. While not plaughed by lay-offs like the automobile industry, the heavily increased prices of raw materials had forced the factories to raise prices. These price raises made it so that thier goods were no longer cheap on the world market, and as such exports have dropped. This is a reversible trend, as long as we can convince the unions to have lower wages and increase foreign investment.
The Information Industry, which holds extreme promise, is being stifled by a lack of funds. It had been the fastest-growing industry for more than ten years, and it does well in the domestic arena. However, they need investors, especially foreign, and government tax-breaks to fully emerge in the global market. The survival of IT is closely linked to tariffs.
The government must also back away from the economy. It is suffocating it with ridiculous minimum wage laws, safety, and high tariffs. In addition, its continued use of State-run business, which are allowed infinite time in bankruptcy, severely hurt the industry. If anything, the operations of the company should be turned over, even if the State still owns it, so it isn't a gaping black hole.
Finally, the ability for TPF to provide "cheap" labor to the international community must not be avoided anymore. With our "cheap" labor, our factories, currently struggling to get orders, would be overfilled with requests. We request the government lower the tariffs, repeal the laws, and open the market. These requests are summarized in the new Industry Revival and Equality Act, or IREA, currently being passed by the various committees and sub-committees. Gold Magazine is pushing strongly for this bill, and well as thousands of cooperations and factories.


What the International Community and Investors Can Do, [Now being advertised heavily on finance-related websites abroad]
The market in TPF, once the tariffs are gone, could easily be worth trillions of dollars to would-be international investors. Once the markets open up, nearly every industry would be available, and every industry is looking for investors. Analysts from the international community confirm these estimates, saying that investors could expect a 10% return easily, while some investors, such as those investing in the IT industry, could see 50% returns. These unbelievable numbers have been confirmed by respected domestic sources such as Gold Magazine, but also by thousands of magazines, shows, websites, and other multimedia abroad. However, this new world of markets cannot be opened unless IREA is passed. To do your part, write and email TPFian senators, telling them how the international community is ready to re-vitalize the lagging TPFian economy. In addition, you may wish to donate money to help the PAC committees and advertisements currently working to persuade senators. This can be broken down as follows.
Individual: 10-1,000 Reichsmarks
Group: 10,000-30,000 Reichsmarks
Corporate Group: 100,000-1,000,000 Reichsmarks
Thank you for your support in helping to open TPF's markets.
Vetalia
23-07-2007, 23:01
Завод имени Вирачева/Virachev Automotive Works

We would like to discuss purchasing automotive plants and equipment for entry in to your market. As the premier Vetalian luxury automaker and the contractor used for production of all government-issue vehicles for our government, we have a history of quality that will produce value for our customers and a significant boost to your economy. We have outlined an ambitious investment, retooling, and expansion program that will make use of assets purchased in your country for production of our vehicles.

Our company would like to purchase at least five facilities and production lines capable of at least 100,000 vehicles per year of output. We would use these to produce the following:

200 ZiV-111 (http://digilander.libero.it/cuoccimix/zil111.jpg) limousines (for government use)
2,500 "Chaika" (http://www.museum.ru/imgB.asp?7647) luxury sedans (for government use)
5,500 "Vorobej" luxury sedans
25,000 "Volgoda" (http://www.ladaparts.ru/hotrods/_volga-1.jpg) sedans
30,000 "Merova" (http://upload.wikimedia.org/wikipedia/commons/thumb/b/bf/Wartburg_311_(1963)_02.jpg/800px-Wartburg_311_(1963)_02.jpg) sedans
10,000 VAZ-90 compacts
10,000 VAZ-430 trucks
16,800 "Petrovsk" subcompacts

With the exception of the ZiV and Vorobej products, these vehicles will be for commercial sale both in TPF and abroad. All materials will be sourced locally.
The Black Agents
23-07-2007, 23:10
The Black agency would like to negotiate a term of investment into opening a precious stones and metals, as well as open a stone and metal refining planets as to produce fine jewelry, both for import and export.

We will require the mining rights for: ( stones )
Diamond
Garnet
Sapphire
Blue Tournian stones
Opel
Red Diamond
Onyx

As well as : ( metals )
Gold- all variants
Platinum
Silver
Copper
-Iron
-Titanium extract minerals.

These are the current items we wish to begin mining and refining for import and export. We would like to discuss what terms would be in stored to the rights.
The PeoplesFreedom
23-07-2007, 23:55
OOC: While I like these ideas so far, it is impossible do to the tariffs, right now we must get letters and money to the senators, so IREA can be passed, so that these investments will be possible.
Lyras
24-07-2007, 01:33
The Protectorate of Lyras has engaged in co-operative ventures with The PeoplesFreedom on several instances in the past and, in no small part due to their success, now finds itself riding on a NS$ 500 billion cash surfeit. However, there is no (literally nil) domestic market in which to turn a profit. There are no Lyran corporations to generate profit. As such, the Lyran Governmental Trade Department is seeking ways to invest the windfall to ensure that it continues to build wealth for the Protectorate, and is not squandered.

TPF has been selected as the site to generate that return.

Current Lyran intent is for a three phase approach.

The first phase, to which NS$30 bn has been allocated, consists of packages, advertisements and governmental incentives, targetted at breaking down the stifling tariff barriers.

The second phase consists of investment and expansion, and has been allocated NS $350 bn, aimed at ensuring Lyran ownership of the majority, or at the very least a sizeable portion, of TPF's booming information technology sector, and also as much as possible of the Heavy Industrial sectors. Generally speaking, Lyras intends to be exceptionally laissez faire, and allow business as usual, with an eye towards ensuring regular returns on investment.

The third phase will consist of utilisation of resources towards accelerating Lyras' military and economic growth. Production of Lyran military hardware, pending TPF government approval, or utilisation of information technology's military applications are the prime long term intentions, at this stage.

For the moment, the Protectorate intends to consult with relevant persons within TPF to establish a timetable and manage the transitions required.
Commonalitarianism
24-07-2007, 10:46
The Commonalitarianism wishes to invest in your information industry, not computing, but robotics. We wish to focus on creating industrial robotics for heavy industry and automotive manufacturing. We currently have highly automated, lean manufacturing factories for producing engines, turbines, cars, and a variety of products.

We believe we can improve the overall quality of your factories, reduce the amount of labor needed in manufacturing while increasing salaries and still saying competitive. We would retrain the workforce that needed to use the manufacturing machinery so it is more skilled.

We are willing to invest $40 billion dollars initially to create the shared research infrastructure to build an advanced robotics industry. These are not the products, but initial r&d and prototyping for the new infrastructure.

After the initial research and development we would invest another $80 billion in building the automation equipment and training facilities.

Regards,

Mimi Ohyes, Minister of Trade