Chapter 584: Discussing Economic Theory While Diving Under the Sea

Chapter 584: Discussing Economic Theory While Diving Under the Sea

Blaney frowned, thinking to himself about Vita's financial situation.

She was keenly aware that Witeta's economy seemed to be facing some potential problems.

In Vita, magicians have never had any major problems paying taxes. The tax system is relatively stable, and according to the conventional tax rates, magicians of all levels pay taxes on time and in full.

However, the problem is that the collected taxes are not circulated well in the market, but are all lying quietly in the official account of Viteta.

From the perspective of the entire Vita’s wealth distribution structure, this situation brings many hidden dangers.

Those wealthy magicians also have huge amounts of wealth in their accounts, but due to the lack of effective guidance and incentive mechanisms, this wealth is just sitting there and not participating in the market cycle.

This has led to an extremely low level of money circulation in the entire society, like a stagnant pool of water.

For the lower-class magicians, this is undoubtedly the most painful situation. They already live at the bottom of society, have a weak economic foundation, and mainly rely on daily labor in the market to earn income.

But now, since the total amount of currency circulating in the market is not large, just like a fixed-size cake being divided into smaller and smaller pieces, the share allocated to each magician will only become smaller and smaller.

This is like a river, when there is enough water, each tributary can get enough water to moisten the surrounding land;

But when the water flow in the main river is greatly reduced, the amount of water available to the tributaries at the end will inevitably be seriously insufficient.

This economic phenomenon will also trigger a series of chain reactions. When the amount of currency becomes less and less, the value of the currency itself will increase relatively, forming the so-called "less currency is more expensive" phenomenon.

In this case, the increased purchasing power of money may seem like a good thing, but in reality it is not.

Because this will lead to the consequence of "high currency and low goods", the prices of goods and services will be lowered. For the lower-level magicians, most of them are engaged in the production of goods or the provision of services, which means that the fruits of their labor have become worthless.

For example, in the past they could sell a magic item for a certain price, but under this economic situation, they may only be able to sell it at a lower price, while their costs have not decreased, which further squeezes their profit margins and makes their lives more difficult.

This economic phenomenon is not a simple isolated phenomenon, but a deep-seated problem involving the entire social structure and economic system of Vita. If it is not taken seriously and resolved, the dissatisfaction of the lower-level magicians will gradually accumulate over time, which may cause social unrest and unrest.

This requires Viteta's management to formulate corresponding policies from a macro perspective to promote the circulation of currency and readjust the wealth distribution structure to ensure the healthy and stable development of the economy.

Blaney smiled and said, "Leader, there are security risks in Witta's economy. This may remain unchanged for thousands of years. After the war, let me take a look at Witta's existing assets! I borrowed only a small amount from Witta, which cannot solve the problem, so Witta needs to open the floodgates and revitalize existing industries."

Doomsday Fireball: "Hahaha, the little girl is smart. Is there a safety hazard here? We know nothing about it..."

Leader: "Of course I know there is a problem, so I encourage magicians to go out and fight to make money, but I can't tell you the specific situation."

Blainey smiled and said, "Everything will come naturally. If Witt takes control of the Magic Island, they can take the opportunity to make major adjustments to prices and currency. The reason why Witt has not been in trouble for so many years is all due to foreign trade. Magic coins from all over the world flow into the Magic Island, and one-sixth of them are earned by Witt, and this has been going on for thousands of years, so they don't feel the seriousness of the problem..."

Because the entire financial system of Magic Island is wrong, and there is an objective situation where the magic circles of various countries in the world are fleecing the fools on time, the crisis was resolved. The Magic Association Headquarters had no choice but to do this, otherwise Magic Island would have collapsed long ago.

This is the balance of power provided by the island nation's strong economy. It relies on its strong technological products to harvest profits from countries around the world and pass on its own economic crisis. Over time, it becomes natural that it no longer feels the possibility of a crisis-ridden economic collapse.

In this generation, Bryony stands out, and she is clearly aware that the magic coin economy may be in crisis at any time.

At this moment, Evergarden has fallen and orthodoxy no longer exists. Vita has the ambition to control the Magic Island. In essence, he wants to replace the old overlord, control the wizarding world, and continue to fleece the sheep. Without Brainy, the situation will remain the same.

Blaney is also an expert at taking advantage of others and is well versed in economics. He absolutely does not approve of the Magic Association Headquarters' approach because it is unsustainable.

She has unique insights and keen observations on the flow of wealth. She is always able to accurately grasp the timing of the tide of wealth flow and cleverly extract some of the benefits from it.

However, she was not a greedy person. She knew very well that she could not plunder excessively, so as not to harm the interests of the majority of magicians.

Therefore, the strategy she adopted was like a trickle of water, which could not only keep the magic market prosperous for a long time, but also achieve sustainable development and never dry up.

At this moment, the battle is imminent and time is too short to elaborate on the details.

But this far-sighted leader kept all of this in mind and was determined to carry out a vigorous economic reform at the current stage in order to completely change the current predicament.

And in this great journey of shaping a new order, a series of key measures are about to be put into practice.

Because of this, Blaney's position became increasingly important in the leader's mind.

If she can accomplish this task well, the entire wizarding world will benefit greatly.

With the establishment of a new order, it will inevitably bring about a completely new atmosphere. If the leader can win the heartfelt support of the vast majority of magicians, then it will be beyond doubt that the leader himself will be remembered in history.

After all, for this leader, he has long stopped pursuing fame, fortune and wealth. What he values ​​most is leaving a good reputation.

Therefore, successfully building a new order is only a minimum requirement. After that, he needs to continue to do good deeds to ensure that his achievements will be praised and remembered by people from generation to generation...

Deep under the water, a mysterious submarine is moving slowly forward. It shuttles through the darkness like a ghost, and every inch of progress is full of unknowns and dangers.

The people in the submarine relied on scout owls to determine their position and groped forward with difficulty. The distance of thirty miles seemed like an insurmountable chasm, but they did not retreat.

As time went by, the submarine gradually approached the target called Guardian Island.

From a distance, you can see a large number of church armed forces docked on the island, and it is obvious that they are on high alert.

At this time, our leader and many magicians had already been fully armed and arrived at the vicinity of the magic circle silently.

Surprisingly, even the pets they carried were fully equipped, with breathing packs specially designed for underwater operations.

From these details, it can be seen that everyone has made sufficient preparations for this operation, and there does not seem to be any discomfort at present.