In Finance: Building an Economy Chapter 4
As we head into winter our villagers settle in for the brief period of cold weather. As it typical for this time a year not much really happens. The group doesn't build many buildings,have many things made, or move them very far. Internet, phone, and TV use is up, as can be expected, but two month ago Mary moved to a flat-rate monthly fee so her income is stable and the expense more predictable for the others.
Even with the slow-down things break and get fixed, folks need to move things, and little things here and there do need to be made. Overall, however, people are not working as much as usual.
Mary made $640 during the winter, spent about $300, and ended up with about $5,000 in her pile.
Patricia earned $400 during the winter and spent $400 so her pile ended up at $2,500. She went without a few things she wanted in order to help keep the pile at a good "safe" $2,500.
James did well. During the winter he only made $400 and spent $500, but ended up with just over $2,000, largely because the funds from building John's workshop last fall. D
John had a lean winter. He did make $300, but spent about $540 from his pile. He ended the winter with only $500 left in the corner. He was feeling a little worried. He never worried before, but the pile seemed so much smaller than when he started.
Everyone was pretty happy though, the village is a pleasant enough place to live with much stress. The dollar thing was working out, even if people were a little more fixated on what they had than they had before the dollars came around.
So the total winter income for all the village was $1,740 (Mary's 640 + Patricia's 400 + John's 400 + plus John's 300). Total spending in the village was $1,740. Those number are equal because no one borrowed any money and there is no trading with other villages.
Even though the spending and earning numbers were the same we can see that the amounts were different for everyone. Some came out ahead, others a little behind while Patricia, as always, came out the same.
Posted by Paul Gernhardt on Saturday, November 01, 2008