Economic Report October 18, 2028 ======================== GDP: 5.888T FRR (5.8T USD) GDPPC: 5487.42 FRR (5405.11 USD) PPP GDP: 19.796T FRR (19.5T USD) ======================== Economic Model: Leftist Mixed Economy ------- The FRSN's economic model works similarly to the former OCCP's economy, though currency remains in limited use among the civilian populace. Simply put, the Federal & Secondary Parliaments control the basic needs of their population, including housing, food, water, transportation, and healthcare. Each person has a ration card, which can be used at any state-owned grocery store, transport network, apartment complex, or hospital. Once there, citizens present their cards, known as Ratikets (Ration Tickets), to specialized scanning machines that authorize their rations. Ratikets come in two forms. The first is a physical card, which functions similarly to a credit card, containing identification credentials and entitlement information, where applicable. These cards also provide an alternative for people who do not possess a smartphone or a reliable internet connection. The second is the Ratiket page on the FedCon Application (will be explained later), which is managed by the FRSN. This allows citizens to access their entitlements through either an official application or a secure digital account. This displays statistics, including available food allocations, transport entitlements, and healthcare eligibility. Digital accounts also allow citizens to manage household allocations and update entitlements when circumstances change. The Ratikets work through a daily system; they can be redeemed five times daily and cover the daily food allotment for the average Federal Consumer. The Ratiket also gives people the choice to either collect some of their provisions over a period of time, or take them all at once, giving citizens a layer of flexibility considering the Ratiket. Despite the separate allocation times, the total daily provision remains constant; the amount of food given per allocation visit differs between one who visits a state-owned grocery 3 times a day and one who visits 4 times a day, for example. Meanwhile, water and electricity are also completely free, though a minor 1.4 to 2.3% income tax is imposed on the Federation's citizens based on how much Rheins they earn annually, which isn't much of a burden, considering that currency remains in use for luxury items only and not for basic needs. Note that any civilian whose annual income is under Ɽ10K, without accounting for the total amount of FHHS points (explained later), is exempt from paying the tax. ---------- Instead of basic currency for jobs, workers are paid based on the Federal Helping Hands System (FHHS, symbolized Ħ). The FHHS works through points, which lead to certain privileges among the civilian populace. Examples of such privileges include higher Ratiket portions and reduced "luxury prices". FHHS points can also be exchanged for Rheins, the standard luxury currency; the typical exchange rate generally remains around 200Ħ for Ɽ10, though inflation rates and other external factors can slightly influence the exchange rate. FHHS points are also not deducted when an individual purchases a permanent, non-redeemable privilege. Just like the Ratikets, the FHHS is managed through both a physical card and a digital app. In fact, they are both part of the larger FedCon (Federal Consumer) Program, which includes the app and the card. Digital FedCon accounts allow a person to see their total FHHS points, purchased benefits, and eligible non-purchased benefits. Additionally, the physical FedCon cards contain both Ratiket information and FHHS Point amounts. FHHS points can be converted to Rheins either through the digital application or at FedCon centers throughout the FRSN with a physical FedCon card. FHHS points are awarded through contracts and depend on work performed, responsibility, and qualifications. Additional compensation recognizes training, difficult assignments, or exceptional contributions; for example, a group of firefighters fighting a large-scale industrial fire will receive more FHHS points than another group extinguishing a bush fire. For those who are unable to work, the Federal government ensures they receive support through separate entitlements. An example of this would be the Federal Scholarship Program (FeSP), which pays students based on their academic GPA for the semester; an A (90–100%) awards 1,000Ħ, a B (80–89%) awards 800Ħ, a C (70–79%) awards 500Ħ, a D (60–69%) awards 300Ħ, and an F (0–59%) awards 0Ħ. This ensures that those unable to work can earn FHHS points and receive support. Despite all of this, basic needs remain available to all people, regardless of status, through the Ratiket.
The FRSN officially classifies any item outside basic needs as a "luxury item". Unlike basic needs, these can be purchased through Rheins and are operated by a free market with limited state intervention. Examples of luxury items include, but are not limited to, private cars, private boats, hotels, restaurant food (excluding diners as passed by Federal Consumer Bill 1029), jewelry, and timepieces (any watch priced over Ɽ1,000). These remain in high circulation with the FRSN's civilian population and, for some luxury items, face lower prices than in other countries due to the FRSN's economic model and domestic industrial capability. Just as FHHS points can be converted to Rheins using the nominal exchange method, Rheins can also be converted into FHHS points through the FedCon centers or the digital FedCon app. Rheins can also be stored in bank accounts across the FRSN with a similar structure to other banks across the globe, although interest is highly illegal across the FRSN. Rheins can be used in numerous forms, either through paper cash, private bank credit cards, the FedCon card, or the FedCon application. In the case of the latter 3, they are all adapted to use the same scanning hardware and software, known as the Federal Scanner III (FedScan-III). Note that the FedCon is a state-owned financial and entitlement institution that handles the FHHS, the Ratikets, and Rheins, whereas private banks only deal with Rheins, generating revenue through regulated service fees, leasing, asset-backed financing, and approved profit-sharing arrangements rather than interest-bearing loans. FRR Banknotes are made with synthetic polymer plus a mix of other materials, contrasting with the SCR used by SCRATCH, which was composed of a fabric-like blend similar to the Vespacian Dollar. This new polymer blend makes the banknotes more durable and water-resistant, while also increasing resistance to tearing. ---------- As for foreign companies that may set up an industry in the FRSN, they fall into one of two categories: the basic needs market or the luxury items market. For corporations that fall into the luxury items market, they earn profit through the Rhein currency system, though the income tax mentioned earlier applies to them too at a slightly higher rate (2–3% of annual profit). For those corporations that fall into the basic needs market, the Federal and Secondary Ministries of Consumable Products act as a direct customer for their products, after which they are distributed among the civilian population for free. However, the income tax is slightly lowered for these corporations (1–2% of annual profit), though, as mentioned in the Purity Bill, strict food standards and quality control can lead to penalties if ever dealt with improperly. However, in terms of contracts, the FRSN does usually prefer domestic producers, though foreign entities also have a chance at competing through a month-long application process and by following the FRSN's quality standards, known as the Foreign Entity Business Application & Contract (FEBAC, pronounced fee-back). The FEBAC is filled out by the corporation, which states the classification of its products (basic needs versus luxury items), the name, CEO, any past controversies, and a full list of the Federation's laws regarding items of each class. Combined, the document is 200 pages long and, at the end, must be signed by both representatives and the CEO, who acknowledge that they will comply with every FRSN law and that any violations will be met with the aforementioned consequences. The FEBAC must be renewed annually by two representatives (no two representatives can sign the FEBAC consecutively so one official does not control successive renewals without a second review), along with the CEO. Before the FEBAC is signed the first time, the company is barred from operating within the FRSN. The FMCP (Federal Ministry of Consumable Products) remains the overarching authority in charge of the application process, reviews the submitted FEBAC, and investigates any violations. Additionally, if the company misses the due date, a two-week grace period is granted only for existing companies in the FRSN. For every day missed during this period, the company will be fined Ɽ10,000, and for the first week missed, it will be issued a formal warning from the FMCP through both email and a physical notice. For every day of the second week, the fine will include the baseline Ɽ10,000 plus 20% of the daily profit it makes from operating within the FRSN. If the grace period is missed, the company gets a 6-month ban, is given a notice of withdrawal from the FMCP through both email and a physical note (stating that in 5 days, the company must withdraw all assets from the FRSN's territories), and after the withdrawal period, all remaining assets will come under the control of the Secondary/Federal Parliaments. Note that corporations can appeal seizure in courts and will receive compensation.
