Activity+2+(Economic+System)

__**World Simulation Activity #2 – Economic Plan**__

__Section 1 - Paper Currency__ = Amanda Turner and Caitlin Kimball

Before the creation of money, early humans relied on trading and ,bartering for getting the supplies they needed. The first coins were invented by the Lydians, who used an alloy of silver and gold to make the coins. Through the spread of culture, other civilizations got the idea and created coins of their own. Paper money, however, was first created by the Chinese merchants, in the early Song Dynasty, who were tired of carrying around a bunch of coins. Eventually, the Chinese government got involved, and made a system that issued paper money. The use of paper money was then spread to other places by cultural diffusion, and now every nation has their own system of currency. Paper money was created because the merchants and sailors were sick of carrying around coins, and the nation of China was running out of the natural resources needed to make coins, so they used paper to make banknote type things, and it evolved into the first paper money the world had seen. The use of paper money had many positive aspects, like allowing traders to set prices for items, creating a measurement for value, and it was used as a unit for account. Along with the early money being issued, the first banks were created, helping the economy and creating more jobs.

The paper money of Lignum Ignus is made of dried tobacco. Tobacco is one of our country’s main exports, so we have a high supply to create the money. The tobacco is harvested and dried, then cut to make the bills. Next, the symbol and country name are printed on the leaves, and they are died based on the amount that they equal. The amounts for our money are not in numbers, but colors. Our country doesn’t have a number system, so basically, different colors equal different amounts. To know how much a bill is worth, you know the color. For buying things, instead of a salesperson saying, “That’s $5,” he would say something like, “That’s two blues and a yellow,” and so on. On the left side of the bill, it says “Lignum”. On the right side, it says “Ignus”. In the center, it has our nation’s symbol, a tree.

__Section 2 - Coinage__ = Amanda Turner and Caitlin Kimball After the fall of the Hittite empire in the twelfth century B.C., the new kingdom Lydia began. The kingdom, originally called Maionia, was named after King Lydus. Lydia was located in Asia Minor. One the country’s most influential accomplishments was the coinage system. Lydia was the first known kingdom to have a minted coin system. Although no one knows the true year they were created, it is suspected that the first coins were minted while King Alyattes was ruler, which was between 609-560 BC.  One of the first coins had a lion imprinted on them. These coins were made of gold and silver, which were some of the country’s natural resources. The coin was about as thick as a pebble. Although the worth of this coin in unknown, it has been suggested that one was worth about one sheep or three jars of wine to buying 11 sheep or 10 goats. These coins helped increase trade.  The Lydian invention of coins greatly influenced the Western world. Through trade with other countries, the idea of having a coin system set up by the government grew. Now almost all countries have a coin system which we can thank the Lydians for.



__Section 3 - Exports__ = Patricia Zarate **India: India has a similar biome because they, like our country, Lignum Ignus, have similar temperatures and wild life. We are even in similar locations, roughly** **30 and 40 degrees south latitude. They provide rice, fertilizers, wheat, oil seeds, tobacco, shrimp, medicine, and wool. They choose to export to create jobs for a continuously expanding nation. Exports also help with communication with other cultures. For India exporting is a valuable asset for its large society.** **Southern Brazil: Southern Brazil’s biome is very nearly the same as our countries. Like Northern Australia, Southern Brazil produces sugar cane, medicine, natural gas, and iron. Through these distributions jobs are created and economy is enhanced. Brazil, like India has a large society within its borders this society profits from its exported items. Exporting results in people having to harvest and create transport methods, exporting provides job as well as eliminating over production.** **1)** **Japan** **2)** **India** **3)** **China**
 * __Similar Biomes__**
 * __Top Major Exporting countries__**

**Lignum Ignus relies the exportation of coal because it provides energy. Other countries are continuously searching for resourceful methods to receive and provide energy. Lignum Ignus will export to Japan, India, and China all three of these countries have a large population that rely on energy for large transportation methods such as trains and other energy seeking items. Natural Gas also assists with the exportation of energy sources. Natural gas is not only used for energy in transport materials but also with the making of paper, which is highly valuable in China, one of paper’s main producers. Natural gas and coal are both main forms of energy and are very valuable to all parts of the world. These items will be top providers for our nation helping with its economy as well as creating jobs.** **Iron another of our exports helps with the production of machinery and transport equipment which are also exports and imports for our nation. We help provide the battle equipment along with other valuable items, such as steel, for other countries. Steel is a strong, durable and versatile item that can also be created at a relatively low price. Iron is valuable because all nations will need, in some shape or form, strong material that will protect them or that will last a long period of time. Iron will be needed for all aspects of culture, the manufacturing of buildings, cars, containers and many other items needed. Iron is valuable for Lignum Ignus to export because not only well we use it we will also profit when we receive imports from China.** **Gold is most commonly used for the production of jewelry but can also be used for the construction of strong building materials. Gold is valuable towards all parts of the world and is a highly valued product. Within our particular region we have discovered microorganisms that ingest gold found within ricks and later deposit them as larger pieces, using these organisms instead of harmful chemicals helps keep our country clean. Crude petroleum is used for the manufacturing of fuels, heavy bottoms such as asphalt and tar, and for petrochemicals which help make plastics, candles, clothing and many other everyday products. Since these products are quickly becoming necessities (car tires, ammonia, ect.) Countries will be inclined to want to import crude petroleum not only to make these products for themselves but also to sell them to further away countries. Both these items are used and wanted by a majority of the world.**
 * __Major Exports__**
 * 1) Coal**
 * 2) Iron**
 * 3) Gold**
 * 4) Crude Petroleum**
 * 5) Natural Gas**

__Section 4 - Imports__ = Angelena Lujan

__Section 5 - Capital City__ = Brandon Brinsfield and Jasmine Griffith
 * Work posted here

__Section 6 - Economic Philosophy and System__ = Katherine Avery and Karly Auer ~
 * Work posted here

__Section 7 - Taxation and Government Spending__ = Desmond Hall

At the beginning of the year, the government will tax people according to the number of kids you have. If you have no children at all you will have to pay a little more than the person who has children. The pie chart document below shows a diagram of taxing. The taxes will go towards the states. It will fix public highways, schools, parks and the rest will go to the people (fireman, policeman, etc.) Our country will spend revenue from taxes to programs called LIM (Lignum Ignus Militia) and the LIPD (Lignum Ignus Police Department), or to the Lignum Welfare program to help the homeless. These organizations will tax the most due to their highly successful organizations that can take control over another country. This will make a little fair, due to the size of our military. If you can't afford to tax, than we won't tax you. Why would we tax if you don't have the money to?

__Section 8 - Inequalities and Economic Hardship Plan__ = Katherine Avery and Karly Auer
 * Work posted here