 | Economic Statistics (2029) |
The Soothsayland Economy
Soothsayer is host to a market economy in which individuals and businesses own the factors of production and almost all decisions of pricing and production quantities are dictated by the market and the principles of supply and demand. There is a small amount of government regulation which mandates a minimum wage, outlaws false advertisements, protects individuals from child or slave labor, set standards for workplace safety, and ensures fair competition by banning trusts and monopolies. Since the revolution, Soothsayer has boasted a very rapidly expanding economy partially as an effect of a very effective economic system.
 | The Soothsayland banking system works on the same free market basis. The banks take money from customers and loan it to business owners to use as loans for investments, making money off of the interest and losing money on the interest that they owe to savers. Each individual bank sets interest rates based on supply and demand and competition. Soothsayer does not have a national bank and thus, banks must borrow from other banks if needed. This also means each banks is allowed to keep and loan out as large a percent of their holdings as they wish as dictated by bank owners, the market and stock holders in order to maximize investing capability and savings security. |
Every savings account in every bank is insured up to ñ100,000 by the Soothsayland government in order to prevent widespread depression if a banking market crash were to ever occur. The Soothsayland government also places heavy punishment on banks accused of fraud. Banks are also outlawed from making any contract clause with a customer that would limit holdings liquidity. Soothsayer is currently on a gold and silver standard making them one of the last few nations in the world to still uphold that standard. Two national mints can be found in the cities of Rogeth and Dotaugrust.
The Soothsayland stock market building is located in Horozca and it is a true bastion of market economics where businesses and individuals from all over soothsayer buy and sell stock in order to generate revenue. Businesses are often publicly traded as well. Pure supply and demand dictate the ups and downs of businesses and stock prices. Stock market prices and levels are accurate indicators of the nation's economic situation. The concept of a stock market is very new for Soothsayer as of just over a decade ago, since he previous communist system did not allow for private corporations. |  |
International trade is also an important factor in the Soothsayland economy. During the communist regime the leadership's attitude toward international trade was very isolationist and protectionist. Freire II had implemented a policy of only trading with close allies. After the downfall of the fascist regime and the Revolution, Soothsayer's first president, Rook Sparring, tore down trade barriers and welcomed trade with all nations but established high tariffs in order to give prference to Soothayland businesses that were just starting out and needed protection from heavy foreign competition. President Mitch Allen has persued a policy of gradually lowering tariffs on imported goods in the spirit of free trade and in order to keep domestic businesses from being able to scare up prices as the Soothsayland economy grows and individual businesses strengthen.
