![latest[2].png](https://i.imgur.com/IEaF127.png "latest[2].png")
What is Equestria's economic system?
>>26832945
bits
>>26832962
That's their currency, famm.
>>26832945
Based on the show, and on actual academic economic analysis as opposed to memery like Marxian and Austrian shit?
Equestria does not function in a way that makes real life economic sense. They have an effective 0% unemployment rate, have no manufacturing, no taxes, no banks, no poverty, buyer beware minimalist consumer protections, etc. But they still manage to have no poverty, no starvation, no market failure, very well maintained infastructure, cities that could only be possible through large scale industrialization, a standing army, a functional government, a currency system either backed by precious metals or by fiat, givernment funded weather control, agriculture, and school systems, investment, and have never experienced a recession that we know of. It simply isn't bound by our economic rules.
>>26833056
MLP:Economy is Magic
As magic as "the market will fix itself"
>>26833056
Is this what a 0% inflation rate looks like? No growth and no decline?
>>26833056
>It simply isn't bound by our economic rules.
Ok, but if it was would it be an overly bloated economic shit hole.
I'd bet they'd have some kind of weird completely socialized system.
Perhaps bits wouldn't be a normal kind of currency and they would be like Bison bucks and have no value outside of Equestria. While the government keeps all the real money and uses it for trade with other nations.
>>26833056
>They have an effective 0% unemployment rate, have no manufacturing, no taxes, no banks, no poverty
>no poverty, no starvation, no market failure, very well maintained infastructure,
[citation needed]
>>26833056
They just cut out all of the hobonies in post.
>>26833118
Make Equestria hreat again
>>26833158
>>26833056
This is the true power of love and friendship. When everyone does everything they can according to their abilities because they deeply and sincerely care, everything works out just fine.
>>26833170
Literally a Marxist final-stage paradise.
![full[1].png](https://i.imgur.com/MxDER7j.png "full[1].png")
>>26833056
Do they allow usury?
>>26833056
Planned economy?
>>26833185
That ain't Marxism, famm.
It's socialism.
![YP-1A-01x03.mkv_snapshot_02.45_[2016.03.22_14.25.17].jpg](https://i.imgur.com/40PyLxK.jpg "YP-1A-01x03.mkv_snapshot_02.45_[2016.03.22_14.25.17].jpg")
>>26833056
Capitalism and wealth classes do definitely exist. In the episode from OP's pic AJ fantasizes about what she could do with all the money she'd make. Besides "a heap of fixin' up", she mentions a hip replacement for Granny Smith. I guess there's no universal healthcare in Ponyville.
>>26833207
>no universal healthcare
Equestria is a third world country
>>26833222
Trips confirm, Equestria is a third world shithole.
>>26833170
This, also magic covers all the shit they need, no need to spend money with electricity and a bunch of stuff when you can use a source of energy that is literally everywhere, the only thing keeping Equestria from being fucking perfect is the fact that they need to manually manage nature otherwise the whole thing will fall apart
>>26832945
Capitalism, but the government gets stock options.
The tax rate is dependant on your performance in an essay contest.
The Bit is made of solid gold, but it's value is fixed and hasn't changed in four hundred years. You can melt down ten Bits and sell the gold for one fifty.
There is a fifty Bit paper note, but it hasn't been printed in more than a century. This is because the reverse of the bill features a griffon being lynched.
By law, you have to loan Princess Celestia fifteen Bits if she asks. Violators will be fined fifteen Bits.
>>26833185
Marxism implies a degree of government enforcement and conditioning of the people. Equestria is pure spontaneous honest caring.
I think what makes the whole thing work are the cutie marks, think about it, a society where everything you need to know about someone is literally tattooed on his butt, everybody has a place in society because there are never doubts about what they want, the moment you get your CM you know you're going to be really fucking good at that, there is never "i am going to change careers because i am not sure", so everybody is a lot more happy with what they do, and happy workers do a good job
>>26833207
>>26833222
>>26833229
It has some pre-industrialized qualities, which clearly work out for the better. Yes there are class distinctions, and some degree of poverty, but this is mainly only apparent in the cities. Ponyville is pretty much paradise. Granny will probably get her hip, but only after a bumper crop or the next zap apple season.
some guy did some maths on that
This is an estimation of the exchange rate for Bits = Dollars and Jangles = Dollars
This theory will be going by the assumption that a bucket of apples seen in Call of the Cutie is 1 Bushel, costing 4 bits
Bits (If apples were very cheap)
4 Bits = $2.00 Nets you a bushel of apples (40-42 apples)
1 Bit = $0.50 cents Nets you 10-10.5 apples
0.08-0.10 Bits = $0.04 7/10 - $0.05 Gets you a single apple
Bits v2 (If apples went for around the same price as the real world)
4 Bits = $14.00 Nets you a bushel of apples (40-42 apples)
1 Bit = $3.50 Nets you 10-10.5 apples
0.08-0.10 Bits = $0.35-$0.37 Nets you a single apple
Bits v3 (If real world Bit was equal to the alternate Bit shown in the show)
4 Bits = $0.50 Nets you a bushel of apples (40-42 apples)
1 Bit = $0.12 1/2 Nets you 10-10.5 apples
0.08-0.10 Bits = $0.01 1/4 - $0.01 1/24 (approx.) Nets you a single apple.
Jangles were used in older generations. This will be going by the episode "The Great Lemonade Stand War".
Really, conversion seems quite simple:
2 Jangles Get you two "extra special" lemonades
Lemonade at those stands generally go for around a dollar. Assuming that:
1 Jangle = 1 Dollar
>>26833206
>>26833238
>>26833185
If you don't even know the basics of what you're talking about shut the fuck up.
>>26833266
>Granny will probably get her hip, but only after a bumper crop or the next zap apple season.
And for the seniors that do not have two farm owners supporting them? I guess that's the power of friendship they're always talking about.
>>26832945
Honor system.
Equestria is Columbia.
>>26833325
>who are Flim Flam
ponies are just stupid, they are naive and can easily be fooled, just look at the Zecora incident
>>26832945
I don't think Hasbro put much attention to the economy in MLP so I wouldn't take it too seriously desu
>>26833222
>paying for the poor to get diabetes medication
Communism must be great. No wonder immigrants are flooding in
>>26833331
logic? on my /mlp/? Nonsense, let's talk about how the day/night cycle makes no sense and how it would affect the world's political scenario since the two leaders of a kingdom in particular can really fuck you over by simply creating an eternal night right above your piece of clay
>>26833371
Good goy.
>>26833371
>An overall healthier population is bad for the economy
Damn
>>26832945
completely fucked
you can buy a giant industrial hairdryer with a gem
or
put it on a cake and eat it
>>26832945
Not enough info to determine.
The show only shows so much, and what it does show, is simple currency transactions from time to time with occasional bartering.
>>26833056
>>26833599
Yeah but that's the Griffon lands, they're not supreme ponies living in Equestrian ponyland.
>>26833599
This is why Capitalism is wrong.
>>26833149
You do understand that, let's say, the ¥ got no value in Nigeria
Currency isn't supposed to be used outside the countrys borders
Fucking murican
>>26833661
Only because catbirds are lazy/treacherous untermenschen who can't govern worth a damn.
Anyone have a cap of that one thread from long ago where Anon teaches Shining and Cadance basic economics through vigorous horse sex?
>>26834126
Someone please have this.
>>26834164
Fuck, I remember that thread like it was yesterday. We had a wonderful discussion of Equestrian sexonomics, a hypothetical currency in which Cadance's special magic blowjobs are what gave it value, and another sexual analogy involving Shining's sexual ability to illustrate a return to the gold standard.
It was a pain the ass for me to dig up from the archives a few months ago, and now I'm on my phone, so fuck it.
Implying the bits are make of gold, 3 tomatoes for 2 bits, is a huge theft
>tanks celestia
>>26834501
I remember this too.
>>26834572
It's probably a fiat currency. Gold has no intrinsic value. They probably just use it because it doesn't degrade and their currency can circulate indefinitely.
>>26833139
No, because growth is not tied to inflation. In fact, the goal is usually that growth outpaced inflation, because if they remain even, you basically didn't gain shit in real terms.
>>26833154
If the show hasn't shown it to us, or alluded to it in any way, then it effectively doesn't exist. Have you seen any of the things listed in the show?
>>26833156
Kek
>>26833199
Nothing we've seen would suggest they have any kind of fiscal or monetary policy, so no. And central planning is Marxian memery, it only works when the planner has more information than the sum of all individual actors in the economy. Which is impossible.
>>26833599
That's a foreign country you ass.
>>26833331
That's what my post was supposed to imply.
>>26833206
>>26833185
Wrong. Marxism doesn't have markets, socialism requires state control of the means of production.
>>26834679
>If the show hasn't shown it to us, or alluded to it in any way, then it effectively doesn't exist. Have you seen any of the things listed in the show?
It can be inferred that unemployment is pretty low because everybody has a talent the only unemployed people we ever see are people who just lost or left there jobs.
I wonder what silver shill is doing now days selling products that work I guess.
>>26833056
They actually do have taxes desu
>>26834679
>That's a foreign country you ass.
Saddle Arabia is a foreign country griffonstone is part of equestria
>>26835155
I don't think so. Otherwise why didn't Twilight already know about their no king situation?
The griffons in the equestria games were probably from a city in equestria that just so happens to have a large griffon population. Since Griffonstone doesn't have a formal government anymore I don't think they would send representatives to the games, though I suppose they could have just gone on their own.
Obviously they get welfare and just don't spend it on drugs. There doesn't seem to be any substance abuse or crime.
I mean, how the fuck does fluttershy get money?
Do they get paid for winter wrap-up?
What about RD for her cloud clearing?
Do ponies really have ultra-material needs like humans? Cider season seems to be the only time they line up to buy something. And that is a food source, not a fancy New couch simply because they've had the other one for 2 years now.
Since we have yet to see any glimpse of poverty, that is: no pony unable to pay for shit and no pony starving to death, we can assume that somehow every pony has some source of income.
Thus, we must ask a more basic question than OP's: What ponies cutie marks have no marketable value or perhaps the market has an over-supply of workers (too many similar cutie marked ponies)
Given the magical nature of the show, the balance of harmony and the existence of a chaos god. I would put forth that there is a God of balance or some sort of power which ensures that when a pony is born, it's job will not only be needed but it will provide the pony with a suitable income for its own survival
And then given the average ponies happy, caring, carefree nature and not only the talent of their cutie mark, but their happiness to do that job til they die. I'd just say everything else just sorts itself out
>>26835614
In addition, their happiness to do their cutie mark job implies that they would do the job without pay.
I mean, does pinkie pay for any of the goodies she ruins? Does she really just live on cupcakes?
Do the Cakes always pay for their baking supplies? Are the flour makers as generous as the Cakes are to Pinkie?
>>26835614
I think fluttershy just gets paid by the government to take care of the animals
The real question is one of scale. It's not really possible to ascertain Equestria's population nor it's employment demographics but my assumption has always been it only functions because of how small it is and how much magical support it has keeping the cost of goods low. Speaking of goods what is an economy like for a creature that can literally eat it's natural surroundings directly, doesn't wear clothes, etc? We're not sure what the implications of homelessness for a pony even are, couldn't they just wander around eating flowers and being filthy? I think the difference in consequences for personal financial failure being so different would render the entire system in some alternate fashion.
Also if you notice they're at the period where there is no formal education outside of apprenticeship. Twilight likes to imply there is but I think she's just spoiled. They seem to be in the period between the enlightenment and the industrial revolution, in terms of the equivalent year Equestria is in the early 18th century somewhere between 1720 and 1750 AD.
https://en.wikipedia.org/wiki/Georgian_era <-- Equestria is here
>>26832945
Feudalism
>>26832945
a one that makes no sence
at leaste equestria girls
>>26835051
Senpai we never see anyone without a job besides children, butterpone, and troubleshoes. Neither of whom actually count as unemployed from a stats perspective, since butters doesn't want a job, and troubleshoes is an aimless discouraged worker who no longer actively seeks work.
>>26835138
>taxes
Imma need a specific episode.
>>26835895
100% incorrect.
>>26836137
background pony offers Twilight that she'll do her taxes if Twilight gives her tickets to the gala
>>26836095
unless rainbows bills are $100 dollar bills and Vinyls are $1 bills (if we go by USD)
>>26835787
I think there is a higher/formal education, but its more based around learn a helpful skill first, everything else second.
>>26836137
>everyone forgets about the most based employed pony
w..welcome to quills and sofasWhy does nobody come into my storeMy quills are just as good as anyone elsesCANT WAKE UP
>>26836137
I'm not entirely sure which pony you mean by butterpone but
Silver shill quit
Svengallop left before having to suffer the embaresment of getting fired
Coco was without a job for a little while.
>>26836346
Flutterbutter is butterpone. And frictional unemployment doesn't seem to persist for very long in pone world, and affects like three pones in 5 seasons, so the unemployment rate is arguably still way below what could be considered healthy.
>>26836225
This actually might create even more problems than it solves.
How do the ponies ensure revenue collection without a pone IRS?
Who the fuck collect their taxes?
How do they find space to store enough money to pay their taxes when they have no banks? Do they just have massive piles of bits sitting in their houses, waiting for tax season?
>>26833056
I remember one MLP analyst who is a native New Yorker complaining that there wasn't enough homeless ponies in Manehatten's equivalent of Times Square, among other things.
>>26835614
>no pony unable to pay for shit
Well the school had trouble paying for new swings but those were exceptional circumstances of wastefulness
>>26836591
Since they no doubt have a mint (where else could all those bits be made?), it's extremely likely they have some sort of financial authority that collects taxes and gives loans and so forth. Tax collection has been a mainstay of human civilization for millennia, so why is it difficult to imagine ponies don't have it?
>>26833056
Friendship is the best economy one could ever need.
>>26832945
>>26832962
more like bitcoins
>>26837075
Those were a valient effort
>>26833056
I wonder if they'll ever mention taxes in any way.
>>26836095
>buys professional grade instruments off a whim.
CHS is in an upper middle class community.
Is it even possible to have inflation if the currency is hard gold?
Because I'm pretty sure, that unless they are space faring, the amount of gold in the world should be fixed, which means the value would also remain fixed.
>>26833056
Hey girls! Its the new Princess Twilight Sparkles Tax Set!
Play with Princess Twilight Sparkle as she fills out her Horse Taxes!
Spike can make use of the DD Form 290-B to register for the Equestrian Selected Reserve!
This set also includes Pinkie Pie in the Tax Dungeon, because she hasn't paid her horse taxes and is currently being audited!
BUY IT NOW!
ONLY AT SELECTED RETAILERS FOR $99.99
>>26838274
Geology is wierd in equestria
Also you don't have it all mined.
>>26838288
If it weren't for the cost I would unironcly buy that for a child.
They would enjoy it but not 99.99 worth of enjoyment
I on the other hand would get plenty out of it for that cost.
I assume they have some sort of income tax but I doubt there's any gst.
The equestrian government does not seem very centralised taxs probably go straight to the town you live in.
So flim, flam, Trixie and cheese sandwich probably don't pay taxs at all.
>>26836591
fimfiction.net/story/248647/a-taxing-evening
>>26838331
Trixie's a travelling entertainer, Cheese is an entertainer but he does it for free.
Flimflam is/was on mobile food business, and then fraud medicine so they're evading tax more than the two, hypothetically speaking
>>26832945
mfw Equestria uses the gold standard.
mfw Equestrians are crucifying Ponykind on a cross of gold.
>>26835299
They use equestrian curency
>>26833056
>0% unemployment rate
>no poverty
>no starvation
>no market failure
>etc....
The fact that something has not been shown doesn't mean that doesn't exist.
Money in equestia is strange as it is bits as one form of currency but then you also can pay with gems? How is that even valued?
Take that one episode which rarity pays her way around manehatten with gems. I mean how does that work? You not only bedazzle all your clothing in gems, but you also hand them off to spike whom eats them.
This is like children making macaroni necklaces which they wear, then use it to buy themselves a toy and the clerk latter eats the necklace.
It is also weird because only dragons see it gems as food as we know, but really what is the worth if you are literally wearing money that is also food? Who would use a parishable item (food) as a currency?
>>26838514
Well spike is literally the only dragon who has any sort of economic dealings within equestria so I don't think you would be worrying about that.
>>26838509
>0% unemployment rate
>>26833056
I think even though it wasn't the highlight of the episode, super squeesy episode did show case it can happen.
A real worry would be loosing the farm which is your entire line of income. Not only money but how you support yourself in life.
With out a farm, you are unemployed farming is your work.
With out a farm, your line of food goes out and you starve unless friends take you in.
You are homeless and poor till you find other lines of work. Gosh that episode was a bit dark when you really think about it, especially what could of happen.
Market Failure... Hmm Not in equestia that I know but outside the lands possible. Griffons didn't fair well after their idle was taken away. Whole economy collapsed there and way of living.
>>26838490
They established that griffons like gold enough that a gold statue brought peace and prosperity to their kingdom, equestrian bits are gold, so they like them bits.
>>26832945
>absolute monarchy*
>precious metal-backed currency*
>few foreigners engaging in trade*
I've always headcanonned Equestria as using a form of mercantilism. Celestia's got a Colbert-tier Minister of Finance who directs it all and she lets him do his thing because muh meritocracy.*probably
>>26833599
>Equestria's protectionist tariffs and requirement that most resources go straight to manufacturing rather than export has held the griffins back
>>26832977
>>26838563
I suppose that makes sense
I still think it's part of equestria though.
>>26832945
Pre-renesance
They've yet to invent the concept of metric currency and only have bits.
>>26832945
Did I just travel back in time to 2011?
>>26832945
Deepest analysis
commies leave
>>26839578
>bits not a metric currency
Bullshit. They have cents as a sub unit, which the name implies to be hundredths of a bit.
>pre-Renaissance economy
Those economies were characterized by the feudal system, which just isn't at all present in Equestria
>>26840429
>posting anti-free trade meme candidate who can't into Econ 101
Those with glass houses shouldn't throw stones anon. Even if it's at other people who also live in glass houses.
>>26838555
So as far as unemployment goes, I fear people are missing the point, which is that given the near-zero levels of unemployment we've seen, Equestria is overemployed beyond the optimal 4-5% unemployment rate. This is actually much, much worse than having a high unemployment rate, because having too few people causes rapid economic stagnation, and the policy levers that can be pulled to correct it are sensitive and can easily make things worse when not not used correctly.
New fun thing that I just realized: The pones also don't appear to suffer from the tragedy of the commons. They have tons of land and other resources that are basically for public use but aren't managed by the state, and they do a very good job of not trashing them.
I am absolutely certain they have a fully free market with no income/sales taxes and government funded on the basis of localized property tax.
>>26834679
>And central planning is Marxian memery
Planned economy doesn't always imply central planning You can have more local planning.
>>26841407
Fair enough. Which they do seem to engage in, given the communal winter wrap up activities involve planting staple crops, which implies that those are for the entire town to share. That, or Mayor Mare is a slave to the farm lobby.
>>26841151
>commie in denial
>>26841801
>he thinks that with all that mainstream macro knowledge, I'd throw away my reputation and become a Marxian douche who ignores empirical econometric evidence
Nice try. But your ass will just have to remain sore indefinitely.
The world of mlp is a caste system like india, you're born into something and you can never rise above it.
>be a pone who wants to go far and be in the high life
>cutie mark happens
>bam, your life is now being a janitor with no chance of advancement, and everyone makes fun of you despite your fate being predetermined
or
>war happens, all the pones with guard or fight symbols get wiped out in the first wave
>a bunch of worker pone with no fighting ability or any chance of learning are left, become slaves for invaders
great
>>26842394
Now that's an interesting take on it. Although some ponies seem to have a more generally applicable skill, which allows them significant social mobility. For example, Dash is extremely good at flying, which allows her to hold a job as a weather controller while aspiring to become a member of an elite military unit.
