avalon

AVALON
 * Natural Resources**: APPLES! iron ore, copper, coal, arable land

Our goal is to ensure the smallest wealth gap possible in a market economy through redistributing wealth and ensuring no citizen goes hungry while another feasts. We are trying to create a balance between freedom and equality, allowing people to participate in the economy freely, while placing state-controlled safeguards against its failure and the poverty of the citizen participants. These would include state regulation of certain parts of the economy and barriers on out of state products to help in-state flourish, as well as redistribution of wealth to lessen the gap between the few wealthy and many poor. **Define your political economy** //o What’s the role of the state in your economy?// The state plays a large role in our economy, thought not to the point of communist. It is simply there to ensure the economy runs smoothly and to ensure that the gap between the wealthy and the poor remains as small as possible. It does this by regulating certain parts of the economy, such as the nationalization of our biggest export, apples, and redistributing the wealth through taxation that is truly proportional to ones income. //o What’s the role of the market? How much regulation do you allow and for what purposes?// The market plays a large role, though not paramount as in liberalism. We have a market based economy, with private property and ownership and competition between businesses, like a liberal economy, but the state also plays a role, regulating certain aspects of the economy to ensure that the wealth is distributed and does not just remain with those at the top. //o How would you measure your state’s capacity and autonomy?// Our autonomy and capacity is moderate because, while the government does play a bigger role and therefore can get more things done, it still relies on the people to approve. //o How important is equality to you? How do you define equality?// Equality is very important in our society, though not paramount. We also place importance on freedom as well, a balance between the two. We aim to make the gap between the wealthy and the poor as minimal as possible while still maintaining a market economy. //o How is policy made in your state? Who participates and has a voice?// We rely on the idea of neocorporatism to make economic policy. As opposed to leaving some policy, such as minimum wage and taxes, solely to the state and other policy, like wages and conditions, solely to the employers/unions, neocorporatism is a system of compromise between the two. Policy is made when the representatives of workers from trade unions, of employers from their associations, and the state come to together and come to a consensus on what’s best for everyone involved, not just those with the most power as in a liberal economy. //o What are some possible flaws in your political economy?// Liberalism supporters would argue that this socialist system and its economic regulation hinders the economy and prevents the natural order of things to take place and make the best. They also say that it takes freedom from the individual and forces them to cater to others who make not be working as hard for their money. Also, taxes are very high due to the social expenditures. //o What will be public goods?// There are many public goods, such as primary education, healthcare, roads system and public transportation, national defense, and the apple-growing industry. //o What are your social expenditures?// We have many social expenditures to ensure equality in our people, such as welfare, paid maternity leave, and a pension to keep poverty at bay for those unable to work; public work options to ensure a job for those who can; universal healthcare to ensure the health of every citizen; excellent public and pre-education to ensure the development of our children; and available college loans to the continuance of this development. //o What’s your tax system? How much of your GDP do taxes consume?// Roughly 50% of our GDP is consumed by taxes in order to pay for all of the necessary social expenditures. //o How much regulation will you impose on your economy? Will these regulations be indirect (safety or environmental regulations) or more specific (control over monopolies and cartels)?// There will be much regulation, but only for the benefit of the people. They will be mostly indirect, such as environmental regulations to keep the health of our workers, minimum wage set high to keep them out of poverty, and safety regulations. There will be specific regulation as well because monopolies that form can be toxic to our market economy. //o How powerful is your central bank?// Our central bank is very powerful, enough to support our regulated economy. //o How will you structure your trade? Are you for FREE trade or will you use tariffs, quotas, and non-tariff barriers to influence trade in order to benefit your state?// The trade with our country is regulated, but not overly so. There are tariffs on certain goods that are produced locally, especially apples. There are also high health restrictions on food products entering our state. //o Does your country have a comparative advantage in the creation of a particular good or service? If so, what is it?// Yes, we have a comparative advantage in the creation and export of our prized apples. //GDP/Capita//-$35,572 //GINI Index//-27.4 //HDI rank//-7
 * What’s the goal of your political economy? How will you balance freedom and equality? This is the most important question for you to answer because everything else hinges on it.**
 * Figure out the components of your political economy**
 * Evaluate the outcome of your political economy**