I've been noticing lately a bunch of people saying "I'm broke" and "I have no money". So why not create a loan station at spawn for those who need just a little more income to reach some goal they have. The staff can create the station, and there can be a 5-33.3% interest depending on the amount of money loaned. The higher the money loaned, the more you must pay back. So why not do this? Post what you think about this idea.
You can get loans from players, the player-player loan market is pretty competitive so it's not too hard to find one.
I understand, but don't you think it would be better and easier to let the staff make a loan station. It will be easy to get to and there won't be ripoffs like some players do.
How exactly would this work? Would staff be loaning our own funds? Would these be server funds? Staff funds aren't on option clearly, because I'm not loaning my money except maybe to friends. Server funds will just inflate the economy, because if people take loans and never pay the money back because they lotto'd it, there's really no way for us to get it back.
Inflating the economy could happen, but so many people want more money. I don't know if the money circulation will last long enough to sustain new members in terms of trades and auctions, and i feel that some of the /sell hand prices are too cheap. Shops seem to be partly a waste to me since you are likely not to make much of a profit with prices that borderline the /sell hand prices. Plus, I showed the interest rates, which will take away some inflation from the circulation. The staff would have to make sure that people pay back loans within a specific amount of time (i.e. a month). In order to do so, they could take fines on you if you don't pay within the limit unless you have a valid and provable excuse. For example, a player goes and gets a loan of $100, and he will have to pay back 10% interest (so he has to pay $110) within a week. If he doesn't pay within the end of the week, the staff will add interest charges and take away money from him until he pays back. This will keep happening until he gives an excuse directly involved with Minecraft and ECC, or until he pays back.
I think that creating a server loan station would make it so that there is less player to player interaction which is one of the things the server wants. Thats why the server doesnt buy every item/block, because they want players to have their own market and influence on the economy.
I'm gonna have to say this one is a bad idea. If a user were to take a loan of... say... 100k. Then, they put it all in lotto and lose it, there is no possible way for the staff to get that money back, so that is 100k that goes into the economy that they can't get back.
the server would loan a limited amount of money ( maybe a thousand) because, as I said, it is supposed to help those who are broke or need just a little more money to reach their goal ( like a rank promotion). Obtaining a loan gives out a little extra money in the circulation and can be transferred the other players by trade and auction. In returning the money, a good way to pay back is to /sell hand with farms and simple minerals like coal and iron. This will still keep up the economy. If you have to pay back $110, then farming/ mining for an hour at the most will pay it back.
This idea has been asked for - for over 4 years now. It will not happen due to far too many economical complications. Sorry.
Mining and farming for like 5 minutes pays back more then 110$. There is also no need to put more money in circulation, there is already too much.
The server wouldn't loan that much money ( maybe a thousand at the most) and a person has to think: in the real world economy, so many people use strategies and entrepreneurship in order to get successful. Then there's the people who make a waste of themselves. everything that features an economy has the same things. By thinking about this, a person who thinks and is levelheaded (can profit) will not use the lotto or betting, as they are unpredictable. The loans are for accomplishing goals and to profit, not to blow.
But some say that there isn't enough money in ECC to get through. And how will you get a thousand dollars in five minutes?
I say again, If it is something you can make in an hour, then why take a loan out in the first place?
I also say this - work for an hour - make the money and there is no need for this. That is why there is /kit so that there is no excuse for not having money unless there is no work being done.
If we are comparing this to the real world, explain how money being spawned in for a loan is realistic. It's not like you can call up 1-800-USMint and ask for them to print you $1000 for a loan.
Well actually -- money from banks is spawned in for loans, just not the way you think. Banks are only required to retain a certain percentage of deposits and can loan out the rest. For my example this required reserve ratio is 20%: I deposit $100 into BankA. BankA holds $20, loans $80 to Jim. Now I still have my $100, but Jim also has $80. Obviously you could argue some semantics but this is basically how the process goes -- banks can indeed 'create' money. It's also not advisable for the idea posed in the OP but just thought I would explain how money spawned in for loans can be realistic
Well I guess you have me beat there It is hard to compare any realistic economy to the ECC economy unless it is at its most simple form and I suppose I made the mistake of trying. Either way, any sort of spawning money in would not work but I'm not going to go into it as the last 20 posts covered it just fine.
I too believe this is a terrible idea. I am not against loans but as stated before there is P2P loans that happen all the time. If you can't get one from another person there is only a few reasons why, either you have a bad reputation on forums/in game, you're new/"no credit". I think that there is too much money in the accounts of people already. *Suggestion just pops in head*
