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The Economics Report is an international economic newspaper headquartered in Marusonya, Esonice, and has many bases in other nations. The Economics Report focuses on reporting statistics, information and events relating to business, trade, technology and economics.The newspaper tries to be as politically neutral and unbiased as possible to report statistics and economic situations accurately, and everyone in the publication has to adhere to strict editorial codes to prevent current day-to-day politics getting in the way of reporting - As a result, the Economics Report is considered to be the most trustworthy source pertaining to economics not only in Esonice, but internationally and is often cited by many experts and universities. 

 

The Economics Report was first circulated by the economist Arichi Sugo in 1977 during Esonice’s rapid growth towards a modern industrialised economy, he believed the nation and foreigners needed a reliable economic news source to take information from and further encourage people to start a business, and for foreign nations to further invest in the Serene Kingdom. He also coined the term “The Esonian Tiger'' to refer to Esonice’s economic boom in the 60s, 70s and 80s. Ever since, the Economics Report has grown to be the most prominent and well known economic newspaper in Esonice, and soon the newspaper decided to grow internationally in 1987. Opening many branches in other nations and has received considerable success and positive receptions by the international community.

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The Rise and Potential Fall of the Salvian Economy: How Unification with Alvernia Could Trigger a Bust for Salvia and Beyond

Xavier Mehiako is a Salvian economist who was head of the Salvian Council of Economists under Stefano Adajio and is considered by many to have been a critical piece in reintegrating Salvia into the wurld economy after decades of isolationism.  Retiring from the post in 2017, he has since become a professor of economics at Trinity University.

Unification with Alvernia is becoming an increasingly popular and demanded political goal for the Salvian people, and while there is still much hesitancy over the idea within the Saulius administration, it seems that each passing day brings an inevitable decision an inch forward towards the Salvian presidency and Concilios, who in the end must be the deciders of such things.  While the debate has mainly focused on the geopolitical and social impacts of such a move, more emphasis is being placed on the economic side effects of a potential union.

With the Salvian market coming out of the decades of recession that was the result of disastrous isolationism, the economy has similarly prospered for the last 15 years with levels of growth not seen in Salvia in the last 80 or so years.  While the consequences of unification are not yet known, many economists and politicians have begun forecasting with mixed results.  With much of Saulius’s popularity and political success riding on this economic prosperity, it makes sense that his administration has begun to put more resources into discovering ways to integrate the Alvernian market into Salvia’s without major disruption.  That being said, it’s worth noting the impacts unification could have on Salvia and beyond.

The major issue Salvian politicians and economists must target would be the higher unemployment rate and lower average income for Alvernians, especially the Alvernian Marenai in the northeast.  Not only are these issues on their own, they often present more problems with them.  Measures would need to be put in place to combat these dual beasts without putting too much strain on the welfare system.  Salvian and Alvernian manufacturing would also duel it out as Salvian companies rushed into the newly opened market and while Salvian and Alvernian products are also similar in terms of quality, Salvian products are often seen as slightly better and cheaper, with the larger Salvian companies also possessing more outreach.  Likely turning out well for Salvian companies, Alvernian manufacturers would find themselves in a tough spot and lay off workers to cut losses, or may exit the market entirely.  Similar trends would most likely play out in other sectors, further exacerbating the unemployment and low income issues.  Alvernian companies would also face tougher regulations resulting in more losses.  All of these factors would contribute to a decline in consumer spending and productivity, Salvia then being forced to prop up a failing Alvernian economy.

Of course, the negative consequences could be cushioned or resolved through government intervention.  Legislation to gradually introduce companies to regulation would soften the blow, although that is relatively simple - the real challenge would be what to do with the Salvian competition in Alvernia.  Protecting Alvernian companies would mean discouraging innovation and growth while letting Salvian companies dominate would certainly result in lost jobs and lower income, again putting strain on Salvian welfare.  This problem, however, has several solutions.  Government intervention, despite its drawbacks, is the most sensible option, although it should be kept limited so as to not choke out growth but not too little that Alvernian businesses still lose out.  Encouraging integration may also be encouraged so as to compromise with both sides, although how that would be carried out is a tough question to answer.  Infrastructure poses another problem as Alvernian funding was directed away from maintaining infrastructure.  This may actually be a blessing in disguise, as Saulius can direct more investment into renovating infrastructure, creating jobs and funneling money into Alvernian pockets.  However even this positive may turn negative as increased government spending may lead to higher inflation.

If Salvian growth is stunted by unification, other countries may begin to feel a burn too.  Neighboring Salvian countries, seen as somewhat reliant on Salvia herself, may also see a stunted growth.  Stunted growth may also be observable in major Salvian trade partners such as Gallambria or Batengdei, although to a much lesser extent.  The main losers besides Salvia and neighbors would certainly be the Palu nations and foreign investors.  Salvia has invested billions into the Palu nations and has already pledged billions more through their “Palu Development Deal”.  Salvian funding may be cut back, hurting Palu firms that Salvia has invested in, and prices may increase as well, reducing imports of Salvian goods and in turn further harming the Salvian economy.  Foreign investors, especially Tagmatine, Iverican, and Gallambrian, may suffer from a Salvian economic slowdown.

This is all assuming things turn relatively sour for Salvia and her economy.  Saulius and his economists have proven to be rather competent when it comes to economic matters and may be able to integrate the Alvernian market quite well while solving the underlying issues of unemployment and low income.  Of course, there are internal issues in Alvernia’s system of governance that play a part in keeping these issues prevalent, another item Saulius’s administration will have to confront.  If dealt with correctly, the short-term consequences of unification will be minimal and accelerate the arrival of the benefits of an increased population, resources, and capital that it will bring.

 

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A Marenai neighborhood in northwestern Alvernia.

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