Troubling Parallels to Reality

The recent changes in economic policy initiated by Linden Lab have generated the most fascinating behaviors in the population.

There were two notable attitudes brought forward. Most troubling was a sense of class strife. The creative producers of the world, the ones who bring us gorgeous clothing, wicked vehicles and warm buildings, suddenly were shunned as evil "content barons." Resented for their dispicable ability to produce goods and thus wealth, the "consumer class" had nothing but vitriol to spit at our most valued residents.

I don't get this. These creators deserve our recognition and our cash. They got their popularity on their own efforts and collaboration, not on anyone's back. The gut reflex to envy and despise is nasty and disconcerting.

The next attitude I heard was that people shouldn't charge L$ for anything. I'd like to think all the negative and childish response to economic maintenance is from underaged folks using their parents' credit cards. It is the most common sense to understand that people who do excellent work should be paid for that work, thus ensuring continued quality production into the future.

So, two infantile notions. People who work harder and give their time to producing wealth are pricks. No one deserves to be paid for outstanding work. SL businesses deserve to be held in higher regard than this.

Thank your local content baron. Thank Linden Lab for ensuring their efforts are paid with just rewards via sound economic strategy. Go buy a new dress, a new bomber jacket, a house. Go to Abbots and buy the best vehicles in SL.

Any time the talents of men and women are taken forcibly by those "in need," the talented quickly vanish. What hooked me on my Second Life was the staggering creativity of the top producers. Let them always be compensated.

Very nice post Enabran!

Great Post Embran.

I was distraught to receive on arrival wednesday tuesday the 'protest' T Shirt stating in bright letters:

'We play, We get paid'

I thought a second this was written tongue in cheek. But it's not. People meant it.

Well, too bad. Because, in SL as in RL, "We work, We get paid". And SL's price for "tourists" like myself is about the lowest in the market.

Stephane Zugzwang

The protest signs really pissed me off. I made one in response and walked around the WA for awhile.

Side a: "preserve capitalism"
Side b: "greed rocks"

Ya'll have friends.

Thank you Enabran! I've been very disturbed by the same things and it's very nice to hear a voice of reason. Your comments are very much appreciated

That post put into words what I was too pissed to say last night inworld while listening to people complain and demand they get more for less.



God, I thought EXACTLY the same thing. This whole thing reminds me of nothing more than the complaints of teenagers that get their allowance cut, or that are denied the new cell phone/car/whatever because they don't think they should have to get a part time job. (Subtle aside - from the glaring spelling and grammar errors from a number of these complainers, I don't think the underaged assumption is far from the mark. And note I said "number", not "all" or "every".)

Thanks Enabran, I feel a little less alone now.

-Inez, 28 going on 55

I found Enabran's post from last summer Let me cite here while wishing all "content baron" good luck Seriously, some people really should give you brake now and let market decide or make things themselves.

Very true, Enabran

Anshe, hehe, I didn't even consider land barons when I posted, but your replacing content with land makes a decent point, too.

I made my first L$1000 as a smalltime landbaron, selling off 16m2 plots as marked up "advertising space." In retrospect, it probably wasn't the most respectable of wealth-making, but I did take considerable time hunting down land in well-trafficked commercial areas.

Today I hoard my stipends and entertain myself with original building on the 1024m2 plot I bought for myself in Kaili. I'm a consumer for now, but I make no mistake that owe much to the producers.

Thanks for the sentiment, Enabran.

Any of you content barons may contact me for your Content Baron Equipment, consisting of top hat and cane. Jolly good!

I say.

Well written post. Thank you!

Wow..you need to reread some threads if that is all you got out of them. How narrow and simplistic. I saw many other well-reasoned arguements against these changes, or some of them. Also, I haven't seen anyone attacking talented content creators. But I have seen many state that it will make the rich richer and the poor poorer, which is a fact.

Many folks have admitted on here that they lack the imagination or talent to be successful in business within SL, which is not something I'm going to condemn them for. And I think most would definitely agree that there are some splendidly talented people creating in SL. I think the main complaint is more along the lines of the only folks initially, or obviously, benefitting from this change will be those that have money to sell on GOM.

To many folks, the in-world economy was doing just fine. Folks could afford to buy some stuff, but weren't by any means getting rich without creating worthwhile or entertaining content, worthwhile content was being created, land prices were down but on a slow rise, goods were pretty stable in pricing, there was good market competition, funds were being given to charity, and nowhere did I see the L$ not being of value to those that had them.

Would it have eventually caused a real problem? Very likely. But solutions certainly could have been discussed more and put into place gradually.

Your post is very one-sided and a tad ill-informed. It's almost like a Fox News report

Thank you Enabran! That was quite eloquent.

Very nice post Enabran!

My post, David Valentino, had nothing to do with forum discussion or with reasoned discussion. My post was in response to wholly unreasonable in-game behavior by individuals who would likely be hard-pressed to assemble the appropriate components of sentences requisite for a forum discussion.

These were people swarming the welcome area, seething with rage at the loss of their welfare state. As far as I'm concerned, the forums are a secondary reality. Without the repose of a large text editing box and sluggish forum responses, the true emotion of people came out.

It was in the welcome area that the envy was laid bare. It was in-world, in the fervor of chatting with Linden employees, that it became clear that many had no regard for the time spent creating great works.

I personally lack the creativity to launch a Second Life business. I'm in the process of attaining a RL business degree and thus find my time duly taxed. I spend my Second Life exploring the creative whims of my mind, chatting with other creative folks, and admiring the fascinating ant farm economy that has sprung from a few racks of servers.

To say my post is ill-informed is itself ill-informed, as you neglected to first determine the context of my musings. The forum is a place for (hopefully) intelligent discussion. The assumption that all residents engage in that discussion is dubious at best.

My post was an ode to the producers of our world, who in recent days have been afflicted with a plague of resentment and disdain, judging from in-world sentiment. The only point that one can attempt to refute from my remarks is that the sentiment in fact exists.

Anyone who visited the welcome area during the protests can vouch for its existence.

This has been mentioned ad infinitum, but I'll restate. Less money in an economy affects everyone, including businesses. It's like a bucket: remove some water and the level everywhere drops. This is not a discussion of the elimination of the stipend or of the bonus and we would do well to stop treating it as though it were so.

It's Machiavellian, but I agree that Linden Lab should have done this much more gradually. So gradually that no announcement would have been necessary, nor any discussion. Everyone would just wake up one day and realize that if they need significant funds, they'll need to do more than run dance animations or log in once a week. There's a reason why Trump gets a helicopter and I get a used Buick.

This reality is not a joking matter. The majority of Second Life's development team are folks who have nothing but L$ and goodwill to count on as payment. The moment it becomes a losing equation for them to make goods or cash out their L$, these citizens will stop creating for profit, leaving us with an inexpertly designed world with mere pockets of skilled creation. The balance that keeps consumers consuming and producers producing in a world as virtual as this is going to be tenuous. It deserves careful watch and zealous protection. Bravo, Linden Lab.

David (and others who agree with his sentiments):

1) Practically EVERY item sold in-game is a "luxury" that you do not need, to "play the game" or enjoy any of the experiences offered in SL. So all this talk about people "needing" good amounts of money - or "needing" to be able to buy things or they'll suffer is just complete crap.

Bottom line: People got used to getting money for free; and that's a bad assumption / psychology. As some people put it: Its a welfare state. L$50 per week is L$200 per month - which is plenty of money to travel around the world, engage in social experiences, check out people's creative builds, and build your own things - all of which are pretty much free. The only exceptions are events people charge for, and the cost to upload textures/sounds/animations.

2) It is not a fact that the rich will get richer and the poor will get poorer. What is a fact, is that players who pay LindenLab for a Premium Account will get more money than the rest of us. Guess what? Those Premium Accounts pay the bills to keep SL running! People that want to be able to buy lots of items in game have three very easy options: (1) pay for a premium account and reap the benefits, (2) use real-world money to buy L$ from GOM/IGE, (3) create content in-game, host events & charge money for them, become an instructor - do something that is an effort; and therefore worth rewarding with money. Yes, this means its easier for people with more US$ to earn more money in-game... But it doesn't matter what country you're talking about: people in the real-world with more money always have advantages over people with less money. Its not right, and its not fair - but its the way the real-world works, sadly. You will not change human nature or world-policy by trying to rebel against it here.

Conversely - SL provides more "free" ways to make in-game money than anywhere else online or in the real-world. There are no manufacturing costs, no labor costs, little or no tools to buy, no need for real-estate, to be able to create things... With a modest amount of effort, you can change your socio-economic position in SecondLife much, much more easily than in real-life!

Simply having a pulse is not worth paying you for! If it was worth money, why aren't we all throwing cash at people as they pass us on the streets of SL? No - the only reason people feel entitled to a lot of money is because they got used to LindenLab subsidizing us. Well, the free-ride is over. There is no reason to reward people with lots of cash, simply for sitting around in-game or clicking on each others' Ratings. If I can make as much money with a few ratings clicks as Joe Blow can by paying LL US $10/month, then Joe Blow is getting a raw deal - and LL is perfectly within their rights to change that situation. Those of us on free accounts may not like it; but you know what? We should - because the more money LL makes, the longer SL will be around - and the longer we get to play with the fruits of everyone's work!

3) As long as more people are joining and LindenLab is paying out "free" money every week, the economy is inflating. Even if they give out just the base stipend, they're still adding money to the economy. So all this talk about prices and such as it relates to GOM or land-prices is just talk - the fact is that the economy is being filled with L$ - you can debate the rate or its effects; but not that it is happening.

And as long as a Base Stipend exists - you do not have to get a job or create content to make money in SL! You may have to save your L$ over a slightly longer period, to afford some things... But you know, we have to do that in RL sometimes, too! At least in SL rent, food, gas, utility, insurance, and clothing aren't necessary expenses that suck down our "spendable cash"... Its all optional!

No other commercial online game in the history of mankind has let you buy-in for so little money, play for free forever in a persistant world, or create your own content and modify the world around you to the same degree that SecondLife does.

Its a hell of a deal, when compared to any other contemporary MMO - take EQ for example:

Game:                                         SL              EQ
--------                                     ----            ----
Initial Cost:                                $10             $50
Smallest Monthly Cost:                       $0            $10 - $15
Smallest Weekly Stipend:                     L$50         0 - You must kill or craft.
Land Ownership/Rental:                       YES              NO
Land Mod./Creation:                          YES              NO
Custom Animations:                           YES              NO
Custom In-Game structures:                   YES              NO
Custom Vehicles & Physics:                   YES              NO
Custom Textures:                             YES              NO
Custom Sounds:                               YES              NO
Streaming Audio:                             YES              NO
Custom Events:                               YES              NO
Custom Scripts/Programs:                     YES              NO

...The list goes on.... It is obvious which game provides the best deal; even after these changes!

Take care,

--Noel "HB" Wade
(Tread Whiplash)

Tread makes a good point.

Consumption is a luxury.

Production is a necessity.

LL gives just enough to create productive people.

Way to go, E! You told all those leeches a thing or two.

Absolutely true Enabran, but it does work both ways.
As a content producer i know full well that if content i create gives me a revenue, it's thanks to my customers. Without them and their appreciation (not only economical, but moral as well, oh yes, i'm a praise whore, sue me ) designing or building in Second Life would be much less rewarding.
So yes, customer praise and thank your local "Content baron" but "content barons", respect and support your customers, because even if they can't produce for various reason, they don't have a lesser dignity than you, and provide your business with the lifeforce it needs, you give them the goods you produce with your hard work, and they give you the lindens they earn with their hard work (dancers, models, hosts and any other kind of hired job, they do their part as well, like any content creator), it's an even exchange, not a gracious giveaway.

Shiryu - Good points.

I just want to clarify one thing:

I don't believe that comments like Enbran's or mine are in any way meant to thumb our noses at people that cannot create content or pay US$ on GOM or to LL.

Our aguments are that people who aren't putting any effort into the SL community should realize what you have just said:

"...they give you the lindens they earn with their hard work..., it's an even exchange, not a gracious giveaway."

Lindens are a medium for exchange - a L$ should be worth something! Just like the green pieces of paper in your wallet (or other color, if you're not in the USA) that you use to buy things in real-life were not given to you for free. If they were, they wouldn't have any value. They represent the time and effort you have spent at your job, creating goods and services that other people are paying for.

For example, take a (real-life) assembly-plant where you're putting together Desk-lamps. Let's say you're paid $7/hr to work the assembly-line. On your dinner break, you walk next-door and buy a Pizza for $10. This effectively says "a pizza is worth a little over an hour's time of lamp-assembly".

By the same token, a $1 loaf of bread is saying the same thing as "a pizza is as valuable as 10 loaves of bread." Now, whether this is true or not (and what criteria you use - nutrition, quantity, quality, etc.) is irrelevant. It is what the market says - and the big concept here is one of relative value. Economics is all about relative value. Money is just a way of comparing goods and services to each other, so we don't have to "barter" for everything.

If I get L$500 per week for clicking on a few people's ratings, and Joe Blow pays LL US$10/month for that same L$500 per week - what does that say? That effectively says "clicking on people's ratings is worth being paid US$10 per month". ...And if THAT isn't a messed up / broken system, then I don't know what is!

Take care,

--Noel "HB" Wade
(Tread Whiplash)

Oh but if it was for me i would remove rating completely, or change it into a non-profit thing that doesnt cost anything more than the time to write the comment but doesnt give any money as well (you get your rating, a cute comment, you smile and feel happy and appreciated and it stops there).
Thing is that most customers work hard (in a way or another) for their lindens, and if i agree that stipends are freebie money, event support was not freebie money, because you have to work for an event, it costs effort and lindens to organize a good one.
But this is an overly diuscussed point and i don't want to beat the dead horse again.
Just assume your customer money comes from hard work and reespect him, if it doesn't it's his problem, not yours.

I know this thread wasn't originally about Economics specifically - but another example occurred to me that I wanted to post; and it relates to my earlier comments about inflation:

Everyone talks about inflation in terms of land-sales or GOM. They talk about supply and demand. I want to bring it down to a simpler level:

Take this real-life situation:

Your car (pretend you have one, if you don't in real-life). Everyone understands that owning a car is worth something. It costs big-bucks to own a nice car. But cars provide good transportation, convenience, and a whole host of other benefits - that's why we have them, right?

So, if I walked up to you and offered to buy your car with Notebook paper - you'd laugh at me, right? And yet, this is exactly how life works without money: people barter with different items that they have available to them.

Back to our car example... If I offered you a 3-ring-binder of Notebook paper in exchange for your car, you'd be offended right? I mean, that's just crazy, right? You can get that from the store for really cheap; why would you give me your car for it? But, suppose I were to offer you 500,000 sheets of paper. That's still a little crazy, but now you might think "hmmm, I could possibly sell that paper or trade it for some stuff I need". If I bumped it up to 5,000,000 sheets of paper; and gave you the tools to ship and sell the paper, you'd start seriously thinking about giving me your car! You see, again its about relative value. Paper is cheap and readily available. Cars are a little less common than notebook paper - and take a lot more to build/buy! If we suddenly gave away cars to everyone in the world, I wouldn't need to give you paper for your car - I've already got one (or two or three)....

This is what inflation is about, people: With money becoming more and more common in the game, it takes more of it to be worth something - when we swap goods and services, it has to be meaningful.

And this is why flooding the game with lots of money is a bad thing. You can debate how fast it was happening or what the precise effects would be - but you can't argue that it was happening; or that inflation lowers the relative value of the money.

Take care,

--Noel "HB" Wade
(Tread Whiplash)

P.S. Shiryu - I agree again with your last point. I'm just saying that too many users complaining over the changes are expecting to get their money without earning it. And if the money has less value because it is "free" - then it degrades the value of work because the money paid for it has less worth.

Great post Enabran! I've been rather distressed by all the carping and hostility at the welcome area, myself.

I think a lot of people will find that by the end of the month, nothing in their SL lives will really have changed all that much (except that obsessive drive to rate people for no reason).

When you look at the big picture, SL provides an excellent entertainment value at reasonable cash outlay. For a measly 10 bucks you have permanent basic access to a whole alternative life and a vast amount of content. For a reasonable $72, you have a whole YEAR access at a PREMIUM account level. How much do you pay for your cable/satellite each month? Premium packages come in at around $75 a month. That's $900 a year. Now figure up how much time you spend in front of a TV verses how much time you spend in SL.

SL $72 a year
TV $75 a month

Some people are just complainers, if they won the lottery tomorrow, they would still find things to complain about. They never seemed to have gotten the memo that life isn't fair and you just have to make the best you can with what you got....

Quite so! Also, much love for your generosity. My RL fiancee had been in the welcome area no more than three minutes when you dropped a pile of new clothes into her inventory. Thanks for helping my little newbie!

Well, admittedly, I haven't been hanging around the welcome area, and I'm sure there are extemists involved.

Also, to make it clear, I've put plenty into the community, so don't think I feel the way I do because I want a handout. I've run three businesses, two of which are still going and I've given much of my own money into SL and never taken a dime out. Every contest event I've ever held put me in the hole, despite the max of L$750 I was refunded. I've always lost money with events and never made a dime, unless for charity.

I also agree that no one NEEDS L$. That still doesn't change the fact that those without money are the ones hit hard by these changes and those with lots of L$ stand to benefit the most.

Also I hear how bad the SL economy was and how it was effecting everyone. But I have to somewhat disagree. The only people effected were those making real world $ off SL. Businesses were continuing to grow and thrive, very unique and interesting content was being created, folks were shopping for fun and relaxation, prices were pretty stable, if not lowering in many areas. Land could be had at low prices. The in-world economy was in no danger of suddenly crashing. However, the real world value of L$ was very low, and so real world cashflow from SL businesses was indeed suffering.

I agree that money sinks were needed..or would be needed eventually. And I agree that LL should be making a nice profit. However, once again, I can understand how many "poorer" residents and those dependent upon events for "extra" cash were very upset. To them it seems a triple whammy. Take awasy event funding, take away rate farming (yes I agree it was wrong) which means they can't increase thier bonus and cut their exsisting bonus in half. That hurt alot of folks, whether right or wrong.

You can call it infantile if you wish, but I call it expected, and very understandable.