matsumouri
RNG Master
- Credits
- 20
It is known that many of us in this community are frustrated with the state of Perfect Pokemon’s current economy.
Unfortunately, until those of you that want change understand the following principles, nothing is going to fix itself. Please bear in mind that I know that some of you are still and school and under the age of 18, and some of these things I am going to talk about here may not be something you have learned yet in life. Here I will bringing in several concepts from real world economics that I feel directly correlate to the situation at hand here with our economy crisis.
But first I have a few things to ask of you, some ground rules if I may:
- If you can’t take the time to read what I have to say (TLDR), don’t even bother responding to this thread. I do not welcome your opinions.
- For those of you that are willing to read everything, I simply ask that you keep an open mind.
- While I respect your opinions and input, if you don’t have anything constructive to say and/or will result in starting an argument, or going completely off topic, don’t post anything.
- If you must point fingers at someone, do so tactfully. If you are pointed out, take it with a grain of salt. Do not get defensive as there are plenty of reasons behind why you are put on the chopping block. This does not mean you can make accusations.
- If you don’t understand any of this, google.com is your friend. Don’t post if you have no idea what you are talking about.
Whether you like it or not. Perfect Pokemon is a FREE MARKET economy. Meaning, people are going to do what they want to make a quick buck. A free market economy works on the principles of supply and demand. It is the economic model of price determination, and in our case, what our Pokemon are worth in PC.
A free market economy also means there is little to no regulation or intervention by a government (in our case, admins and moderators).
Those of you who have shops open here are BUSINESS OWNERS. You must understand that. In order to be successful in the slightest, this means you must outsmart your competition by knowing the laws of supply and demand.
The four laws of supply and demand are:
- If demand increases and supply remains unchanged, a shortage occurs, and prices go up.
- If demand decreases and supply remains unchanged, a surplus occurs, and prices go down.
- If demand remains unchanged and supply increases, a surplus occurs, and prices go down.
- If demand remains unchanged and supply decreases, a shortage occurs, and prices go up.
In the case of Perfect Pokemon’s economy, we unfortunately have several factors that are affecting it:
- We have too many sellers and not enough buyers. Competition for business is high. There is a surplus in supply and demand is low.
- While competition is high, we also have a number of individuals that have unethical business practices. They do dirty work and take fair business from others.
- There are several individuals who have adopted “get rich quick” mentalities and try to forcibly drive business to themselves by offering floor prices in order to make a quick buck.
- Monopoly. 2% of the forum’s population has a majority of the wealth. No PC is in circulation.