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      Faction Overview		  

Economics in The Republic of Mylantium describes how Faction Treasuries work and how the Federal Government finances its projects.

The Game Bank
The "Game Bank" is the equivalent of the Bank in a game of Monopoly: it represents an inexhaustible source of cash. This cash is generated either by economic activity, or by government fiat.

Economic Activity: This is represented by additions made to Faction Treasuries by profits, wages, and charitable contributions. This is genuine and lasting wealth created by the citizenry.

Government Fiat: If the Federal Bank of Mylantium has been created, then the government can require it to print money to cover any deficits the government may generate. This has the effect of setting off Inflation, however, and adversely affects the government’s Approval Rating and increases Revolutionary Fervor. To see how the Bank can create money, see the rules below describing the Federal Bank of Mylantium. To see the penalties for Inflation, go to the Politics web-page.

Changes in a Faction’s Treasury are noted on its web-page by the GM during the Business Phase, before and after he receives orders from the President relating to the Treasury.

Players can spend their treasuries on improvements: They can build cities, ports, and temples, or they can purchase Victory Points. To see which improvements a Faction can purchase, and the costs of each, click on that Faction’s web-page.

Player Income
Players usually collect money based upon their economic activity, which varies according to the Faction. Plutocrats and Robber Barons collect their money from manufacturing and financial profits; Grangers from the sale of agricultural products; Rednecks, Bureaucrats, Brass Hats, and Proles from wages and salaries; Snake Handlers from religious donations. In practice, this income is determined by various game factors: the number of cities, ports, villages and temples in play, the number of tariffs enacted, the minimum wage setting, and so forth. Legislation thus has a direct impact on how much money a Faction can collect during a turn. To see a Faction’s economic base, see that specific Faction’s web-page.

Players can also collect money either from Monopolies or Subsidies:

A Monopoly is enacted by Legislation and represents a business enterprise chartered and regulated by the government. A Monopoly allows its owner to collect a specified amount of money during the Business Round. Monopolies can be held by a Faction or by the Government, depending upon how the Legislation is written or amended by its sponsor. Monopolies may not be jointly held. Money generated by Monopolies is subject to taxation.

Subsidies are moneys paid out to a Faction by the Government out of tax revenues. They are distributed during the Business Phase and are not subject to taxation.

All income is distributed during the Business Phase.

National Income
The National Income is equal to 150% of the sum of all Faction Income and is used to calculate revenues from the Income Tax (if in effect). Revenues from the Income Tax are entirely drawn from the Game Bank. Note: The Redneck Faction receives a sum equal to 20% of federal income tax revenues. This money is drawn from the Game Bank, not diverted from the federal government, and it is not included in calculations of the National Income (which must be calculated before the Income Tax is calculated).

The Federal Budget
The government of the Republic collects taxes from various sources—taxes on Faction income, from tariffs, from an income tax, and so on—and spends it on various programs. During the Business Phase, the GM will alter the Treasuries of the Factions and of the government, taking account of the various taxes and spending programs in effect. This is automatic, and the President (who is charged with overseeing the federal budget) acts only after the GM reports on the state of the government’s finances: either government taxes will cover all costs, leaving it with a surplus, or they will not, leaving the government with a deficit. The President then decides how to cover the deficit or spend the surplus. (If expenses and income exactly match, then the President need make no decisions at all.)

Options open to the President depend upon whether the Federal Bank of Mylantium is in operation or not, and if it is, who controls it.

If the Bank is not in operation and the government records a surplus, that excess money is either put back in the Game Bank or (if he is in play) given to the Bureaucrat.

If the Bank is not in operation and the government records a deficit, the President must decide which programs will go unfunded. A sufficient number of programs must be cut to eliminate the deficit.

  • Military units cannot be funded in part: any units unfunded are automatically and permanently disbanded.
  • Pensions cannot be funded in part: Unfunded pensions are not eliminated, but a pension which has its payments suspended causes the Approval Rating to fall and Revolutionary Fervor to rise.
  • Subsidies can be funded in part: Unfunded or partially-funded subsidies are not disbanded, and no penalty is incurred by the government (except to upset the Faction who loses out on the subsidy.)

Rules relating how the budget works when the Bank is in operation are described below. Note that even when the Bank is in operation, the President may choose to ignore it while dealing with deficits and follow one or more of the above procedures.

The Federal Bank of Mylantium
The Federal Bank of Mylantium is a Monopoly that can only be created by Legislative act, and that can only be held by either the government or by the Plutocrat. There are two sets of rules, one associated with a government-held Bank and the other with a Plutocrat-held Bank. These rules cannot be changed by Legislative act, except that a Plutocrat Bank can be nationalized and held by the government, or the government Bank can be privatized and turned over to the Plutocrat; in either manifestation, the Bank can be abolished. Those respective rules are set out in the charters printed below.

Money created in accordance with article 4 of the Bank-as-government-monopoly or article 9 of the Bank-as-Plutocrat-monopoly is Inflation as described above, and it incurs the penalties described on the Politics page.

The GM records how much debt or how many Certificates of Deposit the government has. Interest expenses and income are automatically calculated by the GM when calculating the government’s budget.

Charter of The Federal Bank of Mylantium (Government Monopoly)
The Federal Bank of the Republic of Mylantium, having been instituted by act of Legislation by the Congress of the Federal Republic, is hereby granted the following powers and responsibilities as declared in the following Articles:

  1. The Federal Bank shall serve as the central Banking authority for the Republic of Mylantium and shall function as a department of the Federal Government.
  2. The Federal Bank shall have as its Governor the President of the Republic, who shall have sole power and discretion in all manners relating to the functioning of the Bank.
  3. The Federal Bank shall have the power to issue legal tender for the Federal Republic, and shall have sole power to issue legal tender.
  4. If at any time the Federal Government has insufficient revenue to cover its expenses, the Bank (at the direction of the President) may create by fiat any amount of funds (in increments of $10) that may cover the deficit, in whole or in part.
  5. If at any time the Federal Government has insufficient revenue to cover its expenses, the Bank (at the direction of the President) may seize up to (but no more than) $20 from the Faction Treasury of the Plutocrat.
  6. If at any time the Federal Government has a surplus of revenue over its expenses (in any amount) the Federal Bank shall immediately split the excess revenues in any proportion determined by the President between the Plutocrat and the Bureaucrat.
  7. The Federal Bank of Mylantium, being instituted by act of Legislation, shall have this Charter subject to review and interpretation by the Supreme Court.

Charter of The Federal Bank of Mylantium (Plutocrat Monopoly)
The Federal Bank of the Republic of Mylantium, having been instituted by act of Legislation by the Congress of the Federal Republic, is hereby granted the following powers and responsibilities as declared in the following Articles:

  1. The Federal Bank shall serve as the central Banking authority for the Republic of Mylantium and shall function as a private monopoly granted to the Plutocrat Faction.
  2. The Federal Bank shall have as its Governor the Plutocrat player, who shall have sole power and discretion in all manners relating to the functioning of the Bank, subject only to Articles 5 and 8 below.
  3. The Federal Bank shall have the power to lend money to the government and shall have sole power to lend money to the government. It may not loan money to any Faction, nor may it issue Certificates of Deposit to any Faction.
  4. The Federal Bank shall have the power to issue Certificates of Deposit and shall and shall have sole power to issue Certificates of Deposit.
  5. Should the President deem fit, he may require during a Business Round that the Bank lend money to the Government in increments of $10. This money is not drawn from the treasury of the Plutocrat.
  6. During each Business Round that a government owes money to the Plutocrat (excluding the Round when the debt was issued), the government shall pay the Plutocrat $2 per $10 in debt. When it repays the debt it shall repay the full principal plus $2 in interest due that Round.
  7. If at any time that the Federal Government has revenues in excess of its expenditures, the Government may deposit the surpluses in the Treasury of the Plutocrat and draw a Certificate of Deposit. Deposits may only be in increments of $10. Money deposited may be used by the Plutocrat for any purpose. On each turn that the Plutocrat holds a Certificate of Deposit, he shall pay to the Government $2 in interest payments.
  8. The Government, at the discretion of the President, may during its Budgetary period demand repayment of one or more Certificates of Deposit, in which case the Plutocrat must surrender to he Government the principal of the Certificate(s) and $2 interest on each.
  9. Should the government demand repayment of a Certificate and the Plutocrat lack sufficient cash to meet the demand, then the excess money shall be created by fiat and paid to the Government, in increments of $10.
  10. In the event that the Congress either rescinds this monopoly or nationalizes the Bank, all Debts and Certificates of Deposit shall immediately become void.
  11. The Federal Bank of Mylanta, being instituted by act of Legislation, shall have this Charter subject to review and interpretation by the Supreme Court

NOTE: Debt and Certificates of Deposit can only be taken out in increments of $10. Any surpluses left over are automatically given to the Bureaucrat (if he is in play) or returned to the Game Bank.