(Extension) Inflation of Skill

[Dabnad 172]

Hey everyone, it’s Dabnad again. Last time I posted in the forum I posted about my prior experiences here however this time, I wish to post an extension of a supplementary task. I will go over some basic reasons why the inflation exists (a summary of the other article) and then I’ll go into detail of how this inflation happens, and then I’ll go over an (non real life) example and a counter argument which I will debunk. I will use the country I’m currently living in (Canada) for all of these so I don’t get any replies saying this is political.

 Inflation in the VHL happens a lot. You can see this when people end up handing out TPE during the holiday season, as we saw last week with some members earning 40+ TPE in the week, which has people earning more and more TPE during certain weeks. This leads to the fact that the TPE earned in regular weeks has less of a value because of the amount of TPE earned putting more skill inside of the VHL. The biggest downside to this is the VHLM where newer members end up falling really short against those who earned TPE during the holiday season. An upside to this is that is really motivates those who are new in the leagues (and even those who are older) as they see they are getting free things however, some people just stop working which don’t help them or the league.

 

 Let’s look at an example of this effect. I will be taking Canada as a name example as I live there and I will be using base VHL numbers to make it user friendly. Lets say in Canada every week they print 12 dollars in the treasury for every single person depending on how much they work. For those who work more they can get some money extra from the government. Each week those who work more get richer and those who work less get poorer. It’s all fine as those who work more get more making them being able to spend more and the price of everything goes up just a bit. When the holiday season comes around, the government feels generous and they hand out money to everyone. They hand out 16 dollars to every single person who wants it and they provide a bonus to those who work. Now those who don’t work still get 16 dollars and those who do work get more than they originally got. This means that every single person in the country has more money to spend however, the amount of products in the nation is the same, this shows the economic fundamentals of supply and demand which is heavily used in this situation. Now that every single thing in the nation is more expensive, and those who worked as hard and got money from working suddenly see that the amount that they earn weekly is worth less as other people have earned a huge amount money as well. This shows that the amount of TPE/money in the economy/forum makes it so their money is worth less giving the working class less motive to work. 
 

 A common argument which I’ve seen against this is that the people who don’t work get motivation to work due to the amount of money they got before from charity. To counter this argument I could easily say that motivation isn’t everything however, I will show you why this motivation is really useless in the long run and it only provides more inflation at the end of the season. Lets take Canada (from the last example) back here. The 16 TPE which people earned before is now in everyone’s bank which is ready to be used whenever they want to use it in many different ways. Now     that there is so much money/tpe in the economy, those who were already working only get the motivation to work harder and try harder to earn TPE and those who were never working won’t work saying that they will end up earning more free TPE in the future and rock off of the welfare which they earn along with the easy fantasy tpe. This “motivation” just has people working LESS rather than more on average. This gives people motivation to work less than to work more inside of the VHL which adds inflation giving the “rich get richer and the poor get poorer” saying true inside of the VHL and VHLM. All of this shows that free tpe has never helped anyone no matter what you say however, a treat won’t make a big difference in the long term right? Well no. Looking at the stats, the more you get, the more you spend and the more you get better. All of this shows that this makes a difference in the long term, short term, and other terms. The only thing free TPE for everyone causes inflation in the VHL and VHLM economy harming everyone.

 

 Now again I’m definitely not against free TPE I think it is a free gift from the “VHL gods” and many people love the fact that fee TPE exists and 99% of people who those who get free TPE (including me) and who are at the start of their career, it really gives them a big boost and motivation to get the TPE as it puts them in a friendly league and this is definitely something I’ve experienced since just 2 weeks ago I was claiming welfare and last week I was the top TPE collecter in the VHLM which shows the motivation booster does work for those who are just new in their career and it’s a huge difference with that 40+ TPE which I earned and it’s giving me the motivation to write this very article. Again this is just an article for my opinion and again, I do believe free TPE is a very good thing especially when so many people donated to help the people in their community. Feel free to send your opinions about my article in the below comments and I wish everyone who reads my article likes this article. Again this is just my opinion and if you don’t like it please put feedback on how I can improve my writing skills. This is Dabnad signing out on my article.

 

 

1060 words

Dec 27- Jan 2

Jan 3 - Jan 9

[Daniel Janser 2,165]

I think, you are elaborating craftly how this works, and if 'goods' in VHL were limited as you suggest, it would be a perfect example of how inflation works. Alas, 'goods' are the skill points you buy for your TPE... and there is no limited supply of these... it is not that the VHL tells you 'sorry, already 100 people have bought PH, the supply is depleted, try again next week'. Therefore, I think your comparison is somewhat flawed (though I am not a an economist by any means and might be wrong here.

[Dabnad 172]

6 minutes ago, Daniel Janser said:

I think, you are elaborating craftly how this works, and if 'goods' in VHL were limited as you suggest, it would be a perfect example of how inflation works. Alas, 'goods' are the skill points you buy for your TPE... and there is no limited supply of these... it is not that the VHL tells you 'sorry, already 100 people have bought PH, the supply is depleted, try again next week'. Therefore, I think your comparison is somewhat flawed (though I am not a an economist by any means and might be wrong here.

I mean, there is a maximum amount of TPE you can get in a non-event if you join mid-season (no carrer tasks) week. 12 from capped, 2 from training, and I think 6 from fantasy. This means you can get a maximum of 20 TPE a week no matter what you do. This is what I was trying to refer to as ‘stock’ in the league. 

[Daniel Janser 2,165]

25 minutes ago, Dabnad said:

I mean, there is a maximum amount of TPE you can get in a non-event if you join mid-season (no carrer tasks) week. 12 from capped, 2 from training, and I think 6 from fantasy. This means you can get a maximum of 20 TPE a week no matter what you do. This is what I was trying to refer to as ‘stock’ in the league. 

Did you not compare the TPE influx with Money? You need to separate the goods flow from the cash flow, otherwise your model will not work (or at least that is what I understand from the little economics I had taught to me all these decades ago)...

[Dabnad 172]

12 minutes ago, Daniel Janser said:

Did you not compare the TPE influx with Money? You need to separate the goods flow from the cash flow, otherwise your model will not work (or at least that is what I understand from the little economics I had taught to me all these decades ago)...

I think the banked TPE would be cash flow and the invested TPE would be the “goods” or skills in this case. I don’t think I made that clear in my article which is my fault 

[Daniel Janser 2,165]

22 minutes ago, Dabnad said:

I think the banked TPE would be cash flow and the invested TPE would be the “goods” or skills in this case. I don’t think I made that clear in my article which is my fault 

That is what I understood... TPE = Cash, TPA = Goods... there is no limitation in that scenario for the goods, though. Which kind of renders the inflation argument moot, because inflation only happens if the goods flow is limited... but in this scenario it is not. You can convert all your TPE into skill points without any limitations (well as long as you have TPE to convert) and the TPA are not going to be more expensive because there are more TPE to be had during the events. The cost for upgrading your player remain the same (well apart from the progression, but same is there independent on how many players are going to upgrade)... so the league is not going to say 'Sorry Dabnad, you cannot upgrade scoring anymore, because all 500 points available for Scoring this week have already been taken by other players, we can offer you leadership instead'. There is no shortage (or limit) on skill points.... there are as many available as people want to/can afford to buy... what may happen (but I doubt it) in the long run is that there are so many maxxed players that the VHL cannot employ all of them because of the salary cap... that would be an other story though (and as I said unlikely, as the 20 odd free TPE we got, generous as they are, will not make a huge difference in your career, if you take into consideration, that one skill point to bring scoring (or any other trait for that matter) from 95 to 96 costs you 10 TPE)...

Edited December 27, 2021 by Daniel Janser

[Dabnad 172]

25 minutes ago, Daniel Janser said:

That is what I understood... TPE = Cash, TPA = Goods... there is no limitation in that scenario for the goods, though. Which kind of renders the inflation argument moot, because inflation only happens if the goods flow is limited... but in this scenario it is not. You can convert all your TPE into skill points without any limitations (well as long as you have TPE to convert) and the TPA are not going to be more expensive because there are more TPE to be had during the events. The cost for upgrading your player remain the same (well apart from the progression, but same is there independent on how many players are going to upgrade)... so the league is not going to say 'Sorry Dabnad, you cannot upgrade scoring anymore, because all 500 points available for Scoring this week have already been taken by other players, we can offer you leadership instead'. There is no shortage (or limit) on skill points.... there are as many available as people want to/can afford to buy... what may happen (but I doubt it) in the long run is that there are so many maxxed players that the VHL cannot employ all of them because of the salary cap... that would be an other story though (and as I said unlikely, as the 20 odd free TPE we got, generous as they are, will not make a huge difference in your career, if you take into consideration, that one skill point to bring scoring (or any other trait for that matter) from 95 to 96 costs you 10 TPE)...

I really didn’t think of it that way. I was thinking about the skill level being inflated in the league as there is more skill in the league since there is more TPE. The goods in this are technically not limited (as you said) but when there is more and more of the good the value of it gets less and less. For example there are 2000 teslas on the road at the moment however, if there suddenly have 5000 new teslas the value of the Tesla goes down. That was really my point that the more of a good there is the less worth of the good. However, for next time I will think of what you said considering it’s very confusing of how I stated it.