price vs tech level

[Commander Drax]

What sort of self respecting PCs would knowingly break an arms smuggling ring? The only legitimate reason for that should be to muscle in on the action and get some of those credits...

(SMUGLY) I try to encourage legal adventures, at least within Imperial Territory....

Well, we have loads of RW examples of TL5 workers being paid significantly less than their TL8 neighbors (a lot closer than 1 weeks travel and a lot more visible thanks to near instantaneous visual communications!), and not having a problem with that at all! Mainly because their pay is significantly better than the TL5 shmoe down the dirt path selling ox privates as an aphrodisiac to the local rubes.

Yes but are those Tech 5 gardners and ox testicle salesmen, being paid in local currency or US dollars/British pounds etc, or something crap like IRAQI DINAR..

 

[Fritz_Brown]

Well, when I am doing the comparison, I am talking US$. They're getting paid in local currency, but they are getting bupkus compared to what you and I would make at the same job in our respective locales - no matter what currency.

Specifically, I'm talking things like Nike importing a simple factory (say, TL7) to a TL6 area (say, Bangladesh). It uses the lower labor costs added to the automation, and can now make shoes a lot cheaper than if it employed people in England or the US. This is because of the standard of living differential - and, that relates (somewhat) to the TL differential.

And, again, that's without the added obstacles to mobility of Traveller's "comms=travel" and "jump takes a week" paradigms.

Edit: Those TL5 gardeners are getting paid in the hi-TL currency, as they somehow managed to get to the TL8 world. It's the folks working in the factories that are still "down the road" from their less well-paid family and friends. end edit

 

[Andrew Boulton]

I read an interesting article recently, saying that for some third-world countries money sent home by citizens working abroad actually forms a significant part of their economy. Whole villages will work together to raise the money to send their brightest and best to Europe or America, where even on minimum wage they can make more in a day than they could in a month back home. The money they send back can easily double the income of the village. The same thing would work as easily on an interstellar scale.

 

[Pickles]

I believe a substantial segment of the Phillipines' GDP derives from its migrant workers. The Chinese diaspora also helps the 'mother country' economy, not just by sending back money but by providing a significant export market for Chinese goods and foodstuffs (not that food standards agencies in recipient countries are terribly happy about the latter).

I can see it now: "The only genuine Biter strudel in Adabicci! Get 'em before they defrost!"

EDIT: I knew I wasn't making it up:
Filipino remittances hit $9.7bn

 

[Commander Drax]

Most of the people reading these posts work or live within the developed world, using currencies like the US dollar, The Euro, The Pound etc. Lets say that the whole world suddenly adopted the US dollar as it's currency, (which is the situation with the Imperial Credit, being forced on member worlds) how long would you expect tech 5 workers to work for peanuts when they can compare their salaries to other people in local space (within a few parsecs) earning more money than them for a similar job?

That's my point. There's a gigantic civilisation of over 11,000 worlds all using the same currency (this was a stipulation when joining the Imperium that local worlds had to adopt the Imperial Credit as its currency). Hence regardless of tech level or other economic factors, everyone has a common standard with which to compare themselves to their neighours, whether those neighbours exist on the next continent or some few parsecs away.

You can extrapolate from this that businesses would not relocate to low tech or undeveloped worlds if labor costs are the same, unless of course the local government is bribing them with tax breaks or other financial incentives.

 

[parmasson]

That's my point. There's a gigantic civilisation of over 11,000 worlds all using the same currency (this was a stipulation when joining the Imperium that local worlds had to adopt the Imperial Credit as its currency). Hence regardless of tech level or other economic factors, everyone has a common standard with which to compare themselves to their neighours, whether those neighbours exist on the next continent or some few parsecs away.

But people on this planet can also see at a glance in daily newspapers and images of different standards of living and look at the differences. Some Central American countries are dollarized and it gives them a stable currency but that is all. In addition planets may issue a currency if they want. Presumably because there may be a credit shortage due to the fact that you are a crummy tech 5 world with nothing that anybody wants. A common currency does not automatically assure economic development or political stability.

A few parsecs equals weeks of travel times. I can reach Central America in one day in communicate instantly with that region.

I agree in principle that it will help but in game terms that takes some of the fun away.

 

[Fritz_Brown]

Drax,
Where are you getting the bit about requiring CrImps for joining the Imperium? Or is that IYTU?

 

[Commander Drax]

I am sure that I've read it in Milieu Zero, that during the expansion of the Imperium member worlds were forced to adopt the credit as their currency in addition to the Imperial Calendar. I will check this and get back to you.

 

[Commander Drax]

Check out Page 19 Milieu Zero campaign source book under 'currency'