Actions

Work Header

Rating:
Archive Warning:
Fandoms:
Additional Tags:
Language:
English
Stats:
Published:
2022-04-23
Completed:
2024-05-25
Words:
3,079
Chapters:
3/3
Comments:
29
Kudos:
19
Bookmarks:
2
Hits:
220

Economics of the United Federation of Planets

Summary:

An overview of how the UFP might have handled economics in the TNG era forward if the writers weren't terrified of getting too specific. Comments and Suggestions are most welcomed.

Special Thanks to Pergola+Wingsproggle for ideas and generally putting up with my madness

Notes:

(See the end of the work for notes.)

Chapter 1: Basic UFP Economics

Chapter Text

UFP Economics

In the United Federation of Planets, most often called the Federation, a modified form of the universal income system was employed alongside price controlled capitalism. All citizens received a Federation Basic Allotment no matter if they were employed or not to cover living necessities.

 

Federation Basic Allotment

Every federation citizen was given replicator credits to accommodate a basic wardrobe, household items, and food for a week. The amount was based on average usage throughout the Federation plus fifty percent. Unused RC were simply returned to the system at the end of the week if not used and the new allotment given.

As part of FBA citizens received 500 FC (federation credits) per week to use on non-replicable goods, services, and experiences. Unlike the RC (replicator credits) the federation credits were not returned at the end of the week if not used. They were generally held in a person’s normal banking account.

At the age of eighteen, or as young as sixteen with waiver, citizens would receive a housing credit. One housing credit was equivalent to an apartment of 140 square meters with basic appliances and furniture. The layout would typically be two bedrooms though the interior arrangement could be modified as per the occupants preference. 

All medical services throughout the UFP are free regardless of citizenship status. Education is free to all citizens with a majority of institutions also offering free or low cost options for non-citizens.

 

Replicated Items

All replicated items are generated from patterns. All UFP citizens have access to an extensive library of free ones which include food, household items, clothing, and a variety of other everyday items. Some were only accessible through specialty facilities such as industrial replicators in the case of things like ground skimmers.

Outside of the free replication patterns there were licensed ones which introduced a federation credit surcharge for their use. The profit generated from this would go directly to the license holder each time an item was created. 

While altering replicator patterns could be quite complicated and often outsourced to specialized companies, cosmetic changes were easy. Colors could be changed or art could be added using a simple graphics interface.

Food recipes could also be modified and saved to a personal index with relative ease.

 

Buying A Medium Raktajino

Generally the cost of an item replicated outside of the home or public replimats was the equivalent replicator credit to create it plus a service charge in federation credits. The average amount of replicator credits consumed is a constant with a small return when the cup is reclimated.

 

A stock standard one from a hotel lounge replicator would likely cost 1-2 federation credits. 

A signature brand blend or otherwise specialized version from the same replicator would cost 1-5 federation credits.

A shop that makes them fresh by hand from replicated ingredients would cost 2-5 federation credits.

A specialty shop that blends them from organic ingredients by hand would cost between 3-10 credits.




FBA and Partnerships

Due to how Federation laws worked, combining FBA into a single household account was entirely voluntary even in cases of marriage or other domestics partnerships. It was more common to combine housing credits and replicator credits but not federation credits in a household rather than fully combining all three. This is in part due to the ease of transfer for federation credits should partners decide to make a joint purchase. 

Some would choose not to fully combine their replicator credits and instead contribute a specific amount. This was particularly common if one party was generally in charge of food preparation or replication of household goods as FBA replicator credits could not be transferred freely unlike federation credits.

The practice also wasn’t limited to those engaged in partnerships, those choosing to live communally with family or friends would often do so as well.



FBA and Star Fleet

When someone enlists or becomes an officer in Starfleet they do not cease to receive FBA. They continue to receive it in addition to service benefits which often include additional federation credits.

The provided quarters, even family quarters, are not considered to represent the HC provided by FBA. It is not unusual for a fleet member to have an apartment on their homeworld or a world they intend to live on after they retire from service. 

It is also common for Fleet members to either list their housing for use through the local tourism bureau when on extended assignments. This generates a modest amount of federation credits and the tourism bureau is responsible for upkeep during its time listed.

Informal lending of personal residences between fleet members was also common. 



Replicator Credits

Citizens could purchase replicator credits which would be kept in a separate account but could be combined with FBA. These credits had no expiration date and would remain in the holders account until used or transferred.

10 credits = 1 replicator credit

1 replicator credit = 125 g of material and the energy to convert it to a complex object



Reclamation

A replicator could take objects and reclaim them back into credits but there was some loss involved. Typically less than one percent of the mass and all of the energy originally expended. This resulted in a person generally only getting seventy five percent of a replicator credit back. If they were FBA replicator credits, it was simply kept on the account. If they were non FBA they were refunded as whole replicator credits if there was a sufficient amount involved with less than full credits being refunded as federation credits. 



Housing Credits

When an individual was born on a given federation world a housing credit was automatically generated for them and held until the age of eighteen. This was used to help plan the growth of population centers and related amenities. If a citizen was born off planet then their default allotment was decided by their parents planet of origin.

The housing credit included in FBA could not be sold or traded but was possible to have the planet associated with it reassigned. More popular worlds like Earth generally had a waiting list that at times was in excess of ten years for any location and longer for desirable ones.

Beyond the FBA it was possible to buy additional housing credits. Additional Credits would guarantee that the housing unit represented the number of housing credits in cost x 140 square meters or an equal amount of land. Non FBA housing credits or properties purchases with them could be willed.

1 Housing Credit = 100,000 Credits



Federation Credit to Gold Pressed Latinum Exchange

The physical size of gold pressed latinum has little to do with latinum content itself and more with ease of use and protection of the contents. As such a brick of latinum is only moderately larger than a bar but has a higher content of liquid latinum. 

The practice of “shaving” GPL is to carefully cut the gold carrier without disturbing the liquid latinum continued within it. A process that is possible as it is stored in thin layers rather than larger chambers.

 

1 Credit = 1 Slip 

100 Credits = 1 Strip

2,000 Credits = 1 Bar

200,000 Credits = 1 Brick

 

100 Slips= 1 Strip

20 Strips= 1 Bar

100 Bars= 1 Brick

 

10 credits = 1 replicator credit

1 replicator credit = 125 g and the energy to convert it to a complex object

1 Housing Credit = 100,000 Credits = 5 bars of GPL

 

At a guestimate 1 federation credit = .50 USD



Chapter 2: Working in the UFP

Chapter Text

Working in the UFP

Given how the UFP Federation Basic Allotment system works many newcomers to the federation find the idea that anyone would choose to work strange. The Ferengi alliance in particular has a standing betting pool on when the whole thing will collapse.


Wages and Profit Sharing 
Jobs are mandated by law to offer an hourly wage as well as a profit share. How the profit share works depends on the position and industry. 10% of profits are to be split among the non-stake holding employee’s, with some variation depending on industry.


Food Service and Sales
Typically for such jobs the profit share is 10% of all sales made by the individual. This is on top of a cut of an additional 10% that is split evenly among all staff. Customer interaction and sales positions are considered high stress which has resulted in the increase of incentive.

Tipping is not a common practice due to this. Exceptions typically involve a performance element. A teppan chef for instance is likely to be tipped.


Frequency of payment
With rare exceptions, payments of wages are typically rendered the same day due to a high level of automation in expense processing. Weekly pay dates are uncommon but not unheard of. Longer ones are uncommon and highly situational. 


Working and Why People do it

A common question among non UFP citizens is why anyone would bother with working if they aren't in a high paying field. For instance, why would someone willingly work as wait staff?

Sapient Rights Protections
The UFP has stringent safety guidelines with regard to employment. Both in terms of facilities safety and the individual physical and emotional health of the employed. Four day work weeks and six hour shifts are the norm. 

Profit Sharing
All businesses participate in profit sharing. Net profits are shared among all employees, management, and owners equally. While this often raises more questions than it answers, it is the norm in the UFP and has been for some time.

Personal Satisfaction
Many people find participation in manufacturing, sales, and other services rewarding. This is largely true because of the lack of survival pressure on society and the individual.  As they do not have to do this in order to justify their continued existence they have the option of finding a field they like and working a reasonable amount of time. 

Chapter 3: Private Businesses in the UFP

Chapter Text

Private Businesses in the UFP

While the Federation’s FBA program has removed the underlying reliance on participation in capitalism in order to live, it has not removed the public desire for goods and services. No more than it has stifled the creative impulse or desire for meaningful employment among its citizens. 

Due to fundamental differences UFP businesses operate differently than those common in the Cardassian Union or Ferengi Alliance.

It's a rare UFP business that isn’t able to turn a profit. The low cost of materials, availability of a highly trained workforce, and comparable affluence of UFP citizens creates a thriving market for a variety of endeavors.

 

Common UFP Businesses

Sale of Goods
This can be anything from fresh produce to jewelry. They range from small artist operated boutiques with limited hours to large grocery stores open late.

Services
This refers specifically to work that is done by an individual on demand for a consumer. Nail artists and waiters are both service providers.

Manufacturing
The production or assembly of goods at small to medium volume. The materials used may or may not be replicated. This is distinct from industrial manufacturing.

Cultivation
The production of organic foodstuffs.

Entertainment
Concerts, Holo Showings, arcades, entertainment is defined as an experience.

 


Starting a Business in the UFP

Creating a Business Plan
This fundamental step is rarely skipped in UFP society even when it can be. It is taught from middle school forward. Research of methodology, sourcing of equipment and materials, facilities needs, it's considered normal for the average citizen to be able to construct an accurate one independently. Assistance is available though the local chamber of commerce however and those looking to start a business soon often submit them for informal review.

Obtainment and Verification of Credentials
Not all businesses require this, but most do. Be it a food handlers card, forklift certification, or something else before beginning a business people usually undertake the needed steps to get any credentials or training they might need. Failure to do so will result in a denial of a submitted request for funding or space rental, but has no further consequences. Once the needed certification or training is obtained applications can be resubmitted without prejudice.

Funding
Depending on the scale of a business it's not unusual for a single citizen or small group of them to simply save for a few months and buy any needed equipment.

In cases where specialized or more expensive equipment is required funding can be applied for either as a loan or grant. 

Interest free loans may be acquired from the local UFP chamber of commerce after submission of a business proposal, equipment list, and relevant credentials. Payments are taken at a rate of 10% of net profits per month until the loan is repaid. Should the business fail the equipment purchased with the loan becomes property of the chamber of commerce and either reclaimed or resold but no debt is assigned as a consequence.

In the case of consumable materials loans are not given but grants can be applied for. A grant follows the same process as a loan but there is no repayment required. Oftentimes they are applied for together to cover the start up costs of a business for the first several months. 


Alternative Funding
There are niche cases in which the UFP does not give small business grants or loans to an applicant, though not many. Provided the proposed business venture in such a case is legal a publicly funded loan or grant can be applied for.

Running in a manner similar to historical crowdfunding the party desiring funding creates a pitch for public review. This pitch will also detail what type of funding they desire and how it will be used, though most embrace a hybrid model. 

Typically they have an overall funding requirement and people can elect to contribute to it as a loan and receive token items of thanks in exchange. Normally something along the lines of access to patterns for branded merchandise at no cost.

Example, someone who contributes 100FC to a skimmer customization shop as a loan might then receive access to a t-shirt pattern featuring the company's name and a graphic exclusive to contributors.

Alternatively if someone elects to contribute funds as a grant they can expect better reward options which may include special privileges related to the venture, early access to goods or services, branded merchandise, or some combination of these items. 

Example, someone who contributes 100FC to a skimmer customization shop as a grant might receive both the t-shirt pattern and a one time 10% off services coupon.

While it's not common for small businesses to require this form of funding it is often used by larger or more intensive ones. An amusement park for instance has considerable upfront costs that are unlikely to fall within the scope of a small business grant. 

No matter the size or type of business alternative funding campaigns are still hosted through the local chamber of commerce. They are tasked with ensuring the validity of the business plan and credentials of the individuals applying before the campaign is approved. In the case of successful funding they ensure funds are used according to the agreement between the business and its contributors, rewards are distributed, and loan amounts are paid back. 


Risks of Contributing

In the event of a business failure that was funded through a public loan the chamber of commerce will oversee the liquidation of assets for repayment. If the profits, equipment, and materials of the business fall short of meeting the remaining amount, what is available is distributed. The remaining amount is discharged after informing the contributors. This is a risk of which they are informed when the initial contribution is made. 


Consequences of at-fault failure

Debt will not be assigned to the individuals involved in the funding application but an investigation will occur. If they are ruled at fault but not in violation of criminal law they will be marked as high risk on public record which will show up in background searches. This is to protect both possible future contributors and business partners.

Despite those sanctions it is still possible for an individual involved in an at-fault incident to apply again. Before they can, they have to attend all recommended educational classes and counseling outlined by the chamber of commerce. A one year period must also have elapsed before they can apply.

Such applications are subject to a much more intensive vetting process. The campaign in the case of the alternate funding platform is also marked high risk for the protection of potential contributors.

Two at-fault business failures will result in being barred from using the alternative funding platform for life as well as applying for UFP loans and grants.


Space Rental
When an individual or group desires a space to do business, be it for manufacturing, sale of goods, or rendering services they contact the local chamber of commerce where they wish to do business and apply for a space rental. 

Space rental is often the last step as a business plan and proof of ownership of needed equipment or ability to obtain it are required. If everything is in order and the application is approved they will either be shown a listing for locally available options or waitlisted.

Location
While this process is conducted through the chamber of commerce for the area in which someone wishes to open their business, it is not geographically linked to a person's place of residence. Someone living in Madrid Spain can apply for a loan or grant and space rental in Saint Petersburg Russia without it being questioned thanks to the global transmat network. 

Distance is not an obstacle, though most prefer to live and work in the same area due to a desire for a sense of community. It's not unusual for someone to apply for relocation of their home or business in order to achieve this.

 

Assistance for Heritage Preservation
Government partnerships are available for certain types of businesses such as artisan workshops or ateliers. Preservation of heritage skills and arts is taken quite seriously in the UFP. Be it Terran First Nation weaving, Andorian ice painting, or Vulcan teppan, it is possible to get access to support in a variety of forms.

Most commonly requested is access to special or restricted natural materials. Certain products like leather are illegal if non-replicated due to cruelty, but plant fibers and humanely collected animal products are possible to obtain. In most cases rather than wild harvested a small production garden or ranch will be created to avoid burdening wild populations and habitats.

 

Notes:

This isn't mission critical information when writing fic's but my brain was displeased it didn't exist because this is the kind of minutia I generally enjoy in a scifi or fantasy setting. I have read a 10k fic about a misunderstanding about exchange rates and experienced no regrets.