Marah only ever turned the pages with one finger. Her focus was more on her tea than on the numbers. "Look, I agree with you. If we join your monetary union, it would have many positive effects on trade for all countries involved. The 24% increase in profits is certainly deliberately a bit high, but I think up to a maximum of 20% is realistic in the long term. However, that is completely irrelevant." The folder slammed shut with a thud. "We don't need to work with the rest of the world. They'll still buy from us. We're an exporting country, but an exporting country of vital goods. The process is always the same. Our companies don't know what to do with their money and buy something abroad in exchange for S-Mark. The money rotates for a while and nothing happens, but inevitably there is another crisis. Demand for food commodities is increasing on the global market. We are the largest supplier. Prices at the ports are rising, but domestic prices remain the same. Our state companies only accept S-Mark. Normally, if a currency rises, demand and or the price of goods that have to be paid for with that currency falls. Nobody likes to exchange 130 Fee for 1.00 S-Mark when they would have had to give 120 a month ago. People prefer to wait for the fee to rise again. Our currency is most dependent on the demand for "food commodities, medicine, metal and weapons. If the demand for these goods rises, the price of these goods rises, the value of our currency rises, causing demand to fall again, the price falls, the currency falls, causing demand to rise again, and so on. Most people know how it works. When all is well in the world, the fluctuations are small, but in a crisis it's a different story. If the demand for these goods rises, the price of these goods rises, the value of our currency rises, but the demand does not fall, the price does not fall, the currency remains strong. If there is a threat of war, medicine, metal and weapons are no longer optional. If there is a threat of famine, importing food is no longer optional. Whenever the world burns, we make the most profit. Whenever the free currency goes down because it is once again useless, our cash register rings even harder. But we don't want you to go down completely, so we buy your government bonds and weaken our currency when we have earned enough. Our companies again don't know what to do with their money and buy some shit abroad. We make profits from the world's problems and at the same time are not affected by them. The question now is, why should I give that away? THAT is what they would have to explain to me."

"It may be that they are making a little bit of profit right now because their neighbors are fighting and have no choice but to buy your overpriced goods, but if you work with us, we all make more profit. With a common currency, their exports would be better at all times, not just when others are struggling."

"Yes, but with more risk. Besides, that only applies to cheap goods. The margins for medicine and ore are always high. For rare metals there are hardly other suppliers. For weapons and steel, there is little competition in terms of quality. Generally, we earn enough with our own currency. Besides, we established it already and you should also bear in mind that if we were to use your currency, we would boost your currency, which would only make it easier for us to export to countries that also use your currency. It is a curse to be too trustworthy. We also have no desire to go down the path of inner devaluation, because there is only flat land behind the hill. Let's face it, the free banks have no interest in anyone else making more than they do themselves. It's just that you don't like the fact that whenever the Fee goes down, you can no longer buy from us, so you want us all to be in the same boat. The scam worked once, but luckily I'm the one who decides here today. It's not important to me whether every citizen has everything he dreams of. That is not my job. What is important to me is that every citizen has everything he needs, because that is the responsibility I bear. The benefits you tell me are no benefits for the majority of my citizens and accordingly I am not interested. I have never restricted your banks and your currency because Baele is a free country with a free market, but I will not force my citizens to use a currency that I cannot control."

"A free market is driven by supply and demand, not by the government."

"Oh really? And where can I find this free market? In Jena, representatives of big companies meet secretly at night in a hotel. In the next room, investigators from the cartel office eavesdrop and meticulously write everything down. When the price increases occur, proceedings are opened for illegal agreements. In the end, there is a small fine, but nothing more. After all, these are important employers who are responsible for supplying the population. They don't want to harm them. The citizens are disappointed and consider the cartel office and the government to be useless, and rightly so. Cartel offices are an enemy of the free market. Don't you agree? There's a cafe across the street where the managing directors of the country's six largest supermarket chains meet every week. In addition to the fine baked goods, they also discuss their prices at length and how they can avoid stepping on each other's toes. Everyone knows that. The financial court knows that as well. Nevertheless, no investigator from the cartel office is hiding under the tablecloth and when the price increases happen, there are no proceedings because, as you know, we don't even have an independent cartel office. We save ourselves the trouble. If all six decide to offer zucchinis nationwide for ten times the price from tomorrow onwards, then they are welcome to try it. Agreements between companies are a normal business activity. In other countries, they are prohibited. So what is the free market? Try valid arguments if you want to convince me."

Mr. Jens only replied with a puff of his nose.

Meanwhile, the boy had been staring holes in the air for a while. "Then why doesn't the zucchini cost ten times as much?" he asked naively.

"Because then no one would buy them, boy. You can eat other vegetables, after all."

"Because nobody would buy them anymore, boy. You can eat other vegetables too."

"But why isn't everything expensive? On the way here, we were down at a square and there was a stall offering apples and water. I wanted to buy a bottle, but there was no vendor there. The stall was empty. There was no price tag either. When I asked an old woman where I should pay, she looked at me as if she didn't understand me. Everything at the stall was free. It wasn't advertising either. I could take as much as I wanted. Nobody was paying attention. Why was it all free? Is it always like that?"

This book was originally published on Royal Road. Check it out there for the real experience.

Before Marah answered, Mr. Jens took the opportunity to speak. "Baele has a lot of public companies in all sectors. Simplified, you could say that one third of the economy is state-owned. The government dictates the prices. If they want to give fruit and water away, they do it." he explained, and it sounded like he was bothered by it.

"No, No, I don't think that's the right way to put it. We don't dictate anything. Everyone is allowed to set their own prices. Only if you intend to work with a state company do they demand that you guarantee a certain final price for their goods. That is a normal market economy procedure. Many private companies do the same. For example, you don't want your own products to be sold at horrendous prices just because the production was limited. The amounts that retailers are allowed to mark up are not prescribed by law, but are negotiated. The highest final prices that state companies are allowed to negotiate for their goods are prescribed by law. In the case of local fruit and vegetables and water, the prescribed final price is zero. How this is remunerated is then negotiated individually, but there are no sham negotiations and there are no compulsory contracts. Nobody is forced to offer state goods if they cannot or do not want to. Nevertheless, they are available in all six major supermarket chains. This is simply a profit-oriented decision by these companies. Selling, or in this case handing out to the end consumer, is the easiest part of the job. Anyone can open a store overnight without any major investment. Anyone can easily get a supply contract with a state company. If the six of them didn't offer state goods, there wouldn't be just six of them at the table for much longer. Our state companies are doing what a cartel office could never do, namely protecting consumers. Baele works out for itself what a fair price is. The private companies are guided by this because otherwise they won't sell anything."

"Whether you dictate prices directly by law or through a contract, in the end the government sets the prices, so it's no longer a free market."

"As I have already indicated, there is no free market; thankfully not."

"Excuse me." The boy spoke up with a questioning look on his face. "How can public companies compete with private companies?"

"The question is the wrong way around. Why shouldn't they be able to do that?"

"Public companies are inefficient. Because of all the bureaucracy. Um... Because there are so many regulations from the state."

"For the most part, state companies have to adhere to similar up to the same regulations as any other company. Do you have anything else?"

"Because people don't bother if you can't fire them."

"Things are a bit different here. You usually have an open-ended employment contract and open-ended really means open-ended. Anyone can be dismissed within the current work day. There is no protection against dismissal or severance pay. If you can negotiate something else, then you are apparently very important."

"If someone comes to work, could I wait at the door and send them home straight away?"

"Yes. You could do that."

"Could I also fire someone before he can take his vacation or overtime?"

"In the event of dismissal, overtime must be paid in full and vacation must be paid out by the hour."

"How much vacation is there here?"

"The law guarantees 44 days of paid vacation. Public holidays are included."

"Could I fire someone if he takes sick leave?"

"There is no protection against dismissal."

The boy's eyes widened. As the son of an industrialist, it was probably music to his ears.

"If someone takes sick leave, I can just kick him out and I don't have to keep paying his wages?"

"Yes."

"If a woman is pregnant, am I allowed to fire her as well?"

"You can dismiss anyone, whether pregnant, sick, have been with the company for 50 years or anything else."

"There's no protection against dismissal at all?" The boy asked, as if he couldn't believe it.

"Yes. As I said, there is no protection against dismissal. Protection against dismissal only exists in countries with a free market."

"That's why there are so many companies here..."

"The taxes are also quite low. There is no protection against dismissal, but there is still no dismissal due to illness. We have full employment and the requirements for a work visa are higher, the lower the demands on the workforce. Labor is a rare commodity. Someone on sick leave is not costing the company anything anyway, so why dismiss him? Employers are only obliged to pay wages for work done. Everything else is covered by the state. If someone is on sick leave, they receive full wage compensation as sick pay from the health insurance fund from the first day up to one month per year. From the second month onwards, a percentage of the salary that decreases over time continues to be paid. The employee does not have to apply for this. They just have to give their sickness certificate to their employer. The employer pays this as sick pay and can deduct the amount from the remaining health insurance contributions. If someone is dismissed, he can receive full unemployment pay from the first day up to one month per year. From the second month owards, it is again a percentage that decreases over time. The unemployed person must apply for unemployment pay at the Social Court. The application is one page and proof of dismissal. If he was already receiving sickness pay, he will not get more money just because he receives unemployment pay now. He will continue to receive the percentage he has already reached. Sick pay, unemployment pay, it's all the same. You don't work. Social security payments have no maximum duration. After four years at the latest, you automatically reach an absolute minimum amount. This amount is then paid for the rest of your life, if necessary."

"The health insurance company pays your full salary from the first day?"

"Yes, of course."

"The employer is off the hook? Isn't that too expensive for the state?"

"We can afford it. We are a successful country. We have full employment, pay practically no unemployment pay and hardly any other social security payments. Tax evasion is non-existent because taxes are low, but the potential penalties are sometimes business-endingly high. Employer contributions to health insurance are also a little higher than usual. It all balances out again. We do it this way so that employees who are frequently or long-term sick don't always lose their jobs straight away. It's less bureaucracy. Employers always have to pay their contributions to the health insurance funds anyway. If, on the other hand, continued payment of wages is only possible up to a certain period, after which the health insurance fund steps in, then the employee must first apply to their health insurance fund again. That's unnecessary."

The boy was amazed. It was perhaps interesting to know that although there was no legal protection against termination of the contract by the employer, there was legal protection against termination of the contract by the employee. The notice period was five weeks to the end of the month. As an employee, you had to give notice by the end of the previous month to the end of the next month at the latest. At first glance, Baele seemed for many such reasons like a paradise for companies, and maybe it was.

.../ End Part