The video analyzes the value of the United Earth Credit (aUEC) in Star Citizen using purchasing power parity, estimating an exchange rate of about five to seven aUEC per US dollar based on in-game item prices, and reveals the United Empire of Earth (UEE) operates as a war economy with significant military production influencing inflation and financial behavior. It also discusses how this war economy affects savings, investments like war bonds, and the potential for financial markets in the game, inviting viewers to consider these economic dynamics within the Star Citizen universe.
In this video, the creator explores the value of the United Earth Credit (aUEC) in the Star Citizen universe by applying real-world economic principles, specifically purchasing power parity (PPP). PPP is a method used to determine the exchange rate between two currencies by comparing the prices of common items in each currency. The creator demonstrates this concept with a simplified example comparing prices between the Czech Republic and the United States, highlighting how differences in item prices can reveal economic factors like scarcity or taxation.
Applying this method to Star Citizen, the creator estimates that the exchange rate between the aUEC and the US dollar is roughly between five and seven credits per dollar. This estimate is based on comparing prices of various in-game items such as food, vehicles, gear, and clothing. The analysis reveals that while food and vehicles have comparable values, gear and clothing tend to be more expensive in the United Empire of Earth (UEE). The creator also notes that a more accurate exchange rate would require weighting items by their proportion of spending, which differs significantly between real life and the Star Citizen universe, where ships and vehicles dominate expenditures.
The video goes further by examining the economic nature of the UEE, concluding that it operates as a war economy. The UEE’s ongoing conflict with the VanDuel means a significant portion of its industry is dedicated to military hardware production. This situation likely leads to higher inflation, which may be masked by price controls or subsidies on essential goods like food. The central bank in the UEE probably prints money to finance the war effort, while keeping interest rates artificially low to avoid making government borrowing prohibitively expensive.
The creator also discusses the implications of this war economy on savings and investment within the UEE. With low interest rates, traditional savings accounts offer little return, incentivizing civilians to invest in war bonds that offer higher interest rates. This mirrors historical examples from World War II in the United States and Britain. Large corporations in the Star Citizen universe might also run their own banks, providing better financial products to employees and the public, potentially supporting the war economy further through investments in war bonds.
Finally, the video emphasizes the relevance of understanding the fictional economy of Star Citizen, not only as an interesting thought experiment but also as a potential influence on the game’s economic design. The creator invites viewers to discuss whether they think the UEE is a war economy, if they would invest in war bonds, and whether the game developers should implement a financial instruments market. The video closes with thanks to supporters and encouragement for viewers to engage with the content and the game’s evolving universe.
