tLoE XVIV: Business as Usual · 3:52am Sep 18th, 2015
It's that time again ladies and gentlemen, time for another installment of the Land of Equestria, and just in time for season 5's continuation (hooray for no more hiatus! ). Now, this week's tLoE installment is actually very much related to the recent episode, because this time around, we're talking about Equestrian businesses!
To start us off, we need to know what the business structure looks like in Equestria as a whole, and while I'll save a full economic analysis for another installment, we'll dip into it briefly to move things along. It is quite clear that the overall market system of the land is something like a free market system, given that Rarity had the freedom to establish her business in two city-states. On that note, it is also quite feasible that the nation's overall economic structure us handled at the Central level rather than the City-State level, but as stated earlier, that is a topic for another day.
All of that in mind, let's keep using Rarity's business as an example, as we look at their establishment and operation. Now, while it is possible that some liberties were taken with time, it seemed that, not long after Rarity purchased the building, she was able to easily open it with very little outside interference. She very quickly picked her own manager, moved her supplies, and opened with no sign of any serious paperwork other than the actual letter that informed her of the availability of the location. In the same token, she was able to make the instant decision to close down, with no official paperwork or anything of the sort. This, to me at least, implies a hands-off approach by authorities when it comes to business, and paints Equestria's economic structure as very close to the ideal Market model. Now before anyone gets upset, I realize that in a 22 minute timespan, they likely will not take the time to show all the official government work, but it was not even implied or hinted that such was necessary, through dialogue or anything found in the background, thus the theory stands until such a time as sufficient evidence is presented to counter it.
How about another business we all know, Sugarcube Corner? A family business, run by the Cakes, this store in Ponyville's premier spot for good delicacies. Given that we just looked at the ease of establishment and closing of a business, how about the constant maintenance of one? The Cakes have been seen very often taking shifts in their store, and shifting responsibilities to their young employee, Pinkie Pie. They create and sell everything necessary right there in the shop, and even have housing within the building, maximizing space. They are entrepreneurs, shown to commonly attempt new recipes such as the MMM and the Sapphire cupcake, proving that they are willing to take risks. Finally, we see that they are a successful business, and given the lack of other sweet shops in Ponyville, they may have a monopoly on that business. Just another piece of evidence for the market model theory.
So, what have we learned? Equestria is very free when it comes to business, taking a hands-off approach, and thus allowing equestrians to govern their own affairs freely.
TL;DR section
-Establishment and Closure of businesses are not government regulated to any significant degree
-Maintenance of business is entirely dependent on the owners
-Monopolies are not prohibited in Equestria (or at least, not in Ponyville)
-Central is very Hands-off when it comes to businesses, it's all up to the individuals.
Hope you enjoyed it this week, and keep on doing what you all do best!
I'm Ironsmith, invent on!
Iron you do know when Rarity said that it was a spur of the moment thing and was going to handle all the paperwork later along with the other paperwork (and the shop setting up in general) was off screen because no one wants to watch ponies do paperwork for a government system.
Unless it was a skitzo dmv that could be funny