tLoE XX: It's Economy Dear Watson!

Welcome to this week's "the Land of Equestria", the series that breaks down equestrian Society in an interesting way! Last week, we took a look at businesses in Equestria, which ties in directly to this week's topic: the Equestrian Economy!

Now, to those of you that may have noticed, Equestria is a pretty ideal society (due in no small part to their mysterious Cutie Marks, which show them their exact role in society), meaning that a lot of systems that typically would falter with Humans can work quite well for them, and Economically speaking, it is no different. You see, what has been shown economically is indicative of a pure Market model,or a "Laissez Faire" Economy, which in layman's terms is an economic system in which the central government does not interfere with private businesses, and does nothing to inhibit the free market. Last week we mentioned that Entrepreneurship and a lack of government interference was present (at least from the federal level, a Although I'm sure some city-states may have different policies), both of which would be present in the Economic system mentioned. I also briefly noted that businesses like "Sugarcube Corner" appeared to have a monopoly on a certain good in a certain area (in that case, Catering in Ponyville ), which also supports this claim. This, in theory, would benefit the Nation as a whole, as businesses have free reign to innovate, and individuals have the freedom to choose that which they wish, and to top it all off (given that Equestria is the most powerful nation on the planet that we have this far seen), it is likely unusually stable thanks to Equestria's multiple city-states keeping trade going.

But of course, the Federal government does technically tie directly into the economy, through their standard currency: the Bit. The Bit appears to be their only category of money (thus instead of pounds and pence, or dollars and cents, it would be just the dollar, or just the pound), and it consists of Golden coins. One bit seems sufficient to buy some basic food products, and given an older-style open market and haggling, prices vary not only from product to product but also (through vendors anyway) from purchase to purchase. It is a solid currency, and given that it is gold itself, there are likely very few problems with inflation and devaluing of the bit, making it a very stable one as well.

In the end, what we see is a thriving equestrian economy, and a thriving Equestrian Society along side it, with freedoms of the market absolutely assured, and the people quite happy from it. Just another advantage Equestria has over many Earth governments.

TL;DR of the week!

-Equestria has a Laissez Faire, or "Hands Off" economy
-Free market, so businesses thrive
-the Bit is the highest and lowest value currency they have
-the Bit, being gold, cannot easily devalue of lead to inflation
-Equestria is an ideal society, and it shows what could be with a dedicated and loyal people

Well, that's all this week folks, return to doing what you all do best!

I'm Ironsmith, Invent on!