From what I’ve heard, neither of those are in the best shape right now…
But they are both without a doubt a centralized economies with a common currency, fiscal policy, and central bank…
Economies aren’t always going to do well after all…
Still, as it currently stands, Tierra is unreasonably decentralized, to the point where many duchies have completely different systems of taxations. Making a decree like: “All tax systems at the ducal level must imitate Wulfram” or “All tax systems at the ducal level will merge with the Intendancy” would spark fury throughout several areas. Even if they are completely reasonable actions to take, they are in clear violation of the oath, and many regions appear to take pride in having a system that is inconsistent with the rest of the country.
Completely reasonable is subjective, and I say this as someone who thinks decentralization is a necessary evil at best.
I’m not aware of any country in European history that has made a drastic change to its tax systems by fiat without discontent, no matter how justifiable that change might be from “What would be good for our country as an independent power?”
And 10% of the population didn’t pay taxes, including the entire population of the Basque Country.
Sounds a lot like the EU and modern Spain…
And then there’s the point where you try to impose any kind of governance or regular taxation on Kentaur. As Cataphrak pointed out in his patreon, taxation in Kentaur is done by raiding.
At the end of the day, isn’t all taxation raiding? The Kentauri just do it in a less organized fashion.
Usually, the taxman doesn’t burn down your outbuildings if you pay.
Well, no. But you can face fines or jail time.
The exemptions are there usually because they wanted something out of that population or they are known for being a pain in the ass and they decided not taxing them is better since they don’t need to pay for an army to kill them every generation.
The biggest thing that needs to happen is a unified revenue collection system so that efficiency can happen. You can always compensate Wulfram and co with other means, namely you could always promise legislation that benefits them and by extension you for giving up their crappy systems.
“Here, we’ll pay you if you just adopt the Intendancy.”
Or Imperial Germany. IIRC Saxony introduced income tax as early as the 1870’s (right after unification) with some other states not introducing it until right before the outbreak of world war 1.
Different taxation systems, different voting laws, different ministries and in some cases even different armies (Looking at you Saxony and Bavaria!).
What reason did it made Takara control the silver? Because Kian controls the gold that made them decide to rival them by having the total control over silver? Also what’s the current currency rate of that of Tierran bank notes to that of the gold?
I don’t think this is something you can actively decide. It’s about what natural resources you happen to have. If you own most of the silver mines, you control the silver market. If you own most of the gold mines, you control the gold market. I’m guessing that most of the Infinite Sea’s silver supply just so happen to be located on Takaran soil or its client states, but it would probably be best to wait for Cataphrak to confirm.
Well in this case Warburton has the absolute control over silver in Tierra. As nearly all of Tierra’s silver mines are in Warburton.
On top of that, I think copper and tin are what Tierra’s mines are abundant in.
That’s not how it works with commodity based currencies.
The dangers of commodity based currencies is “the golden cross.” Namely that the whole economy is based on the amount of silver or gold you have on hand on top of how much is around the world.
To keep their currency protected the Takarans have to either do a ratio based system (5 notes= 1 silver). Or just a one to one value that the silver coin/banknote is worth that much silver if asked for.
Same with Kian.
So the dangers of commodity based currencies is when something crashes, namely farming. When farmers who need to sell Z amount of crops to be able to buy essential goods from others can no longer do so due to either a flood of cheaper grain or the simple fact that their grain isn’t worth what it is- they will go under. Once they start to go under and can’t afford to buy from the merchants- they go under. The next step is the banks go under when all the companies and smaller banks that the Aetorian bank houses underwrite or loan money to go down due to a loss of loans and take their commodity reserves with them. This is also bad because I am sure that they go to Kian and Takara and get loans and currency transfers to keep up this whole operation. The next step is they go and start to have difficulties too and they demand that our banks pay in full and the upright smaller banks and companies they loaned money to are demanded to pay their loans back.
They of course can’t and now our currency is worth nothing as we are forced to rapidly print money to pay off Kian and Takara and we cry as the Gryphon is worth nothing.
Also your money isn’t insured so when the bank dies. Your money dies with it.
I must admit that this kind of maths is going to bust my brain, as I’m an absolute donk in economics.
Speaking of which, the gryphon at this point must return to it nest and have a long sleep. While the Silver falcon and the Southern Dragon continues their Mexican Standoff.
The EU at least has its own centralised and reasonably effective bureaucracy, and the social institutions to support one.
Of course, Imperial Germany was still pretty thoroughly “Prussia and appendages”.
sounds like the only way a gold or silver based currency could work is if your nation a self sufficient island that doesn’t trade with the rest of the world.
Do you work in a bank? I got a cousin that started working in Wall street and he always talking about financial stuff when he visited.
It was a continuation of the Holy Roman idea that the Prussian king was “first amongst equals.”
In reality only Bavaria resisted complete Prussian domination because the Wittlesbachs did have a German Emperor who was the only break between the Austrian Hapsburgs. Also they were Catholic which was another issue considering it was a mostly Protestant state. In fact if Germany won, the Prussian King was expected to reward the Wittlesbachs some lands as compensation.
Fun fact, the last King in Bavaria was probably the only old German monarch who was still loved by the populace.