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Topic created : 7.09.2016, 15:49
JustNash
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this was sent to me by a composed co-worker of my company. Joe is his name and he asked me to share it with you guys:
 
Dear CEOs and mayors
 

let's present ourselves: we are a union that represents a substantial part of your work forces. But don't let that sound threatening: we come in peace! As a matter of fact, we have some proposals to increase your profits!
 
You may have noticed that we spend more in your shops/restaurants/... than what you pay us. This is because our organisation has some really wealthy godfathers that multiply our salaries to reward our good work ethics. So whatever you pay us, you will get more back.
 
In order to do this, please:
* raise our salaries to whatever skill levels you can handle
* stop asking us to go to trainings after work hours: it only results in you paying us less and hence us buying less of your stuff; also, we prefer to go shopping with our wives or go eat out at a restaurant with our families than studying after work
* mayors: launch the project to increase salary expectations any time you can, we will love you for it!
* mayors: once the education index is 5 or higher, stop holding science conferences! The only reason you do it is to pay us less, which will make us spend less, which will attract less shops/restaurants/... to your cities AND attract more factories, which will attract more commuters, all of this will hurt the city budget. Also: we don't like it when the city is flooded by these nerds going to the science conference. It makes want to grab their pencils out of their shirt pockets and snap them in front of their thick glasses wearing noses whilst grunting this is what we'll do to them if they don't get out of our way immediately! Just kidding...
 
Of course, this is just a first line of suggestions. We are open to discuss them with you to get to the best possible solution for everybody. Maybe you would like to discuss this amongst eachother too.
 
Kindest of regards
 

Joe
   

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8.09.2016, 22:37
Wonson
Seven years with Virtonomics
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Dear Joe,
 
It was kind of you to take time and write all these. I am not good enough to predict all the consequences of your suggestions.
 
Joe thinks he deserve high salaries because he is spending more than he's been paid in our shops, restaurants, etc. That's probably a misconception at current state of business. Once JN taught me that City Wealth Index is the ratio of commerce in the city to city population. Looking at demographics you will notice most of the cities' wealth indices are less than 30;in other words Joe is paying only a small portion of his $300 salary to our shopkeepers. So why Joe thinks companies owe him that much?
 
I see a suggestions that I can agree, I.e raising the salaries a little bit more than necessary. But I do it as a payback to community and meanwhile I increase top-1 loading a little bit. It's not possible to ask everyone to follow that guideline.
 
Regards.
 
PS: I am writing this on an idiot 3.5" touch screen with idiot keyboard and idiot auto correction software. Please forgive me if you find many mistakes in the text. I hate this device and I can't hide it. 
IT'S JUST BUSINESS!
 

9.09.2016, 11:21
JustNash
Twelve years with Virtonomics Jubilee Ten Shagreen, VII-XV places Shagreen, VII-XV places Macedonian common amphora Common amphora of Heraklion The winner in the nomination Your Way to success of the Industry Competition Winner of the Contest for Managers in the nomination "Knowledge is power!"
One year with Virtonomics
Основатель г.Хасселт Jewelry Loupe Founder of Carcassonne Twelve years with Virtonomics Belgium soccer ball Traskor Swedish standard Viking helmet
Dalahast Deer horns Ingvar Kamprad Order Mathematic teacher Compass Festive glasses Jubilee Ten Silver Ten
For contribution to the development of Virtonomics The tender collider, VII-XV places The tender collider, VII-XV places The tender collider, VII-XV places The tender collider, IV-VI places The tender collider, IV-VI places World Cuisines, VII-XV places World Cuisines, VII-XV places
World Cuisines, IV-Vi places Shagreen, VII-XV places Shagreen, VII-XV places Shagreen, VII-XV places Shagreen, VII-XV places Shagreen, VII-XV places Shagreen, VII-XV places Shagreen, VII-XV places
Shagreen, VII-XV places Shagreen, VII-XV places Shagreen, VII-XV places Shagreen, VII-XV places Shagreen, VII-XV places Shagreen, VII-XV places Shagreen, VII-XV places Shagreen, IV-VI, places
Shagreen, IV-VI, places Shagreen, IV-VI, places Shagreen, IV-VI, places Shagreen, IV-VI, places Shagreen, II-III places Shagreen, II-III places Shagreen, II-III places Shagreen, II-III places
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Platinum sponsor of the Contest for Tycoons Founder of the city Sikasso Macedonian Silver amphora Bronze amphora of Heraklion The winner of the Industry Competition The winner in the nomination Your Way to success of the Industry Competition The winner of the Storm of regions nomination of the Industry Competition The winner of the Standard of Virtonomics nomination of the Industry Competition
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a small elaboration on my "teachings": the city wealth index is based on the ratio between consumer spending and city population. I don't know how the mathematics work exactly. But I wouldn't conclude that an index of 30 would imply that only 10% of a $300 salary was used.
 
Let's look at Mexico City. 8M in habitants. These people have the following incomes:
pensioners and the likes: 2.45M -> $139.78
unemployed: 598k -> $111.83
working: 5.1M -> $559.13 (not sure if this number is correct, but it appears plausible at the very least)
 
Combined, these people receive an income of $3.26Bn. $2.46Bn of this is paid for by our companies.
 
Now let's look at their spending: in our stores alone: over $100Bn!!!
Let's disregard that they also spend almost $200Bn in local stores since we don't see any of that money.
 
At our car service stations they spend more than $25Bn.
Our medical centers? About $5Bn
And at our restaurants another $35Bn
By the way: all of this spending combines to about $365Bn. Divide that by the 8172k inhabitants and you get about 1000x the indicated wealth index. Although I wouldn't dare to talk about formulae that run this game...
 
Anyway: our companies pay $2.46Bn and get $165Bn in return!
 
So, could Joe possibly be right? He couldn't be, could he? :-D 
 

9.09.2016, 11:49

Last time edited : 9.09.2016, 11:59
Wonson
Seven years with Virtonomics
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Now I can see the point. Even if we include incomes of the whole 45 million Joe(s) in Central Mexico we won't get more than $25B inflow. How they spend $165B in Mexico City?
 
Now... if Joe can pull dollars out of his sleeve every time, what's the point in overpaying him? Will he continue to do so without our generosity? 
IT'S JUST BUSINESS!
 

9.09.2016, 12:59
JustNash
Twelve years with Virtonomics Jubilee Ten Shagreen, VII-XV places Shagreen, VII-XV places Macedonian common amphora Common amphora of Heraklion The winner in the nomination Your Way to success of the Industry Competition Winner of the Contest for Managers in the nomination "Knowledge is power!"
One year with Virtonomics
Основатель г.Хасселт Jewelry Loupe Founder of Carcassonne Twelve years with Virtonomics Belgium soccer ball Traskor Swedish standard Viking helmet
Dalahast Deer horns Ingvar Kamprad Order Mathematic teacher Compass Festive glasses Jubilee Ten Silver Ten
For contribution to the development of Virtonomics The tender collider, VII-XV places The tender collider, VII-XV places The tender collider, VII-XV places The tender collider, IV-VI places The tender collider, IV-VI places World Cuisines, VII-XV places World Cuisines, VII-XV places
World Cuisines, IV-Vi places Shagreen, VII-XV places Shagreen, VII-XV places Shagreen, VII-XV places Shagreen, VII-XV places Shagreen, VII-XV places Shagreen, VII-XV places Shagreen, VII-XV places
Shagreen, VII-XV places Shagreen, VII-XV places Shagreen, VII-XV places Shagreen, VII-XV places Shagreen, VII-XV places Shagreen, VII-XV places Shagreen, VII-XV places Shagreen, IV-VI, places
Shagreen, IV-VI, places Shagreen, IV-VI, places Shagreen, IV-VI, places Shagreen, IV-VI, places Shagreen, II-III places Shagreen, II-III places Shagreen, II-III places Shagreen, II-III places
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Platinum sponsor of the Contest for Tycoons Founder of the city Sikasso Macedonian Silver amphora Bronze amphora of Heraklion The winner of the Industry Competition The winner in the nomination Your Way to success of the Industry Competition The winner of the Storm of regions nomination of the Industry Competition The winner of the Standard of Virtonomics nomination of the Industry Competition
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that's the whole question, of course: is there a fixed multiplier on Joe's income? Or does Joe just have a money printing installation in his attic which he would just use less if upped his pay?
 
I tend to think it's the first option... Especially when mayors raise salary expectations.
 
Maybe someone has a large proportion of employees in some small town where this could be tested? In any event: higher salary cities usually have higher wealth indices... This would indicate that the more you pay 'em, the more they spend per capita... 
 

9.09.2016, 15:35
G_Money33
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In Estonia lien, I'm pushing down the pay all the time and wealth is very high.  That does not definitively mean higher salary does not lead to higher wealth (I enact the retail market boosters on high priced goods all the time which may more than offset salary reduction), but it does raise questions.
 
Is there a way to design a controlled study to prove wealth drivers?  I currently run lien Philippines cities where I can do some testing. 
 

15.09.2016, 03:51
Wuvil
Winner of the Leaders Contest in the nomination Week of perfect Service Winner of the Contest for Managers in the nomination Nation's Health Five years with Virtonomics Winner of the Contest for Managers in the nomination "Knowledge is power!" Winner of the Contest for Managers in the nomination The Standard of Virtonomics
 
I did some testing myself while I was the mayor of Ankara (stopped because I was unable to play for a while due to RL and when I come back Peterke is mayor, he seems to be doing similar improvements) and this was my observations;
 
Constant increase of education, salary and city area - No noticable effects on retail or services. In fact one of my stores was seeing a near permanent gradual decline.
 
After a while I started boosting specific retail in addition to the above, this was an absolutely insane boost to retail sales, unlike the other improvements this one at least paid a fairly large chunk of the fee back. 
 

16.09.2016, 02:06.     Subject: Rhodes
Marloan_Morris
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Maybe in a smaller city example its easier to see the effect.
 
Since I took over Rhodes I am constantly increasing salery size and education index.
But also supporting retail.
 
And I am spending so much in taxes and supplying so cheap electicity that the city is positive now.
 
The car sales since my takeover went 1.5 and the price went up by 200k each.
 
Just an observation to your maths.
Does it pay off in any way... not yet. Lets see in 10 Years.
Maybe for all shopkeepers it does already. 
 

23.09.2016, 06:39
VolandAV
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Wuvil
I did some testing myself while I was the mayor of Ankara (stopped because I was unable to play for a while due to RL and when I come back Peterke is mayor, he seems to be doing similar improvements) and this was my observations;
 
Constant increase of education, salary and city area - No noticable effects on retail or services. In fact one of my stores was seeing a near permanent gradual decline.
 
After a while I started boosting specific retail in addition to the above, this was an absolutely insane boost to retail sales, unlike the other improvements this one at least paid a fairly large chunk of the fee back.

 
Increasing salaries works very well together with the promotion of product groups. Peterke but this reason does not. 
 

23.09.2016, 17:02
Wuvil
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VolandAV
Wuvil
I did some testing myself while I was the mayor of Ankara (stopped because I was unable to play for a while due to RL and when I come back Peterke is mayor, he seems to be doing similar improvements) and this was my observations;
 
Constant increase of education, salary and city area - No noticable effects on retail or services. In fact one of my stores was seeing a near permanent gradual decline.
 
After a while I started boosting specific retail in addition to the above, this was an absolutely insane boost to retail sales, unlike the other improvements this one at least paid a fairly large chunk of the fee back.

 
Increasing salaries works very well together with the promotion of product groups. Peterke but this reason does not.

Yeah I figured that out towards the end of my mayorship as you can tell, before Peterke took the position. Not entirely sure what you mean by the last sentence but I will assume you mean that Peterke does not boost retail and such, which is true, he does not unfortunately. Considering he had been agitating the city for up to several months before RL took me away for a little while I can only assume he really wanted the city... 
 

25.09.2016, 08:44
VolandAV
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Yes, I mean that's the mayor's projects.
http://prntscr.com/cm1oqw ...  
 

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