How do Equestrian economics work?

[TheMarkz0ne 962]

I just thought today, how does the economy function in Ponyville, Canterlot, Manehattan and pretty much Equestria in general. I won't to focus on the ponies and how they do things. Like what do these ponies to that keeps society going? We know the following about the mane 6...

 

Twilight is no a princess, she is a position of governing authority 

Rainbow Dash is weather patrol 

Pinkie Pie is a caterer, someone who organizes events 

Rarity is a famous fashion designer

Fluttershy....I don't know what she does for work. I guess animal care.

Apple Jack is a farmer and has the most important job...Feeding ponies 

 

 

You think we need to follow pony economics in the real world? Because Ron Paul wanted that gold standard a while back and the ponies seem to be booming.

[Khaoios 1,970]

*falls off chair*

Well.........nice point you brought up, i have to give you that.   However, economics on Equestria, watching through some episodes, I noticed that when it comes to purchasing, coins are heavily used, instead of dollars.  That's pretty much what i can tell you, from my opinion. 

[Scootalove 10,692]

Interesting question.

 

I'd have to say that Equestria's economic system is based off of using coins as a system of currency, which it can buy anything from fruits and vegetables at food markets to an industrial sized hair dryer. That's how I see it.

 

They also use gems as a monetary worth.

Edited March 24, 2014 by Scootalove

[Denim&Venöm 20,472]

Apparently diamonds still have monetary worth, enough to substitute for currency. Might also point to Equestria having a partial bartering system in place. They also appear to still be on the gold or some type of precious metal standard in terms of coinage.

[Andaasonsan 3,205]

Honestly all we know is they have a form of currency and it can be used to buy stuff. That can describe pretty much every economic system, though.

[Singe 2,111]

Bits are the main currency. Gems are also used, but I think their value has a limit since any Unicorn with a gem detection spell could just be instantly rich

Edited March 24, 2014 by Singe

[PsychedelicPony 440]

I say it's a pretty capitalistic society based on the fact there are rich and poor and Rarity actually competes with other designers. However, it seems there are Socialistic tendencies in Equestria. All in all I see it modeled after America, but with a more ideal economy rather than America's true economic setup 

[Colorful Respawn 399]

I always wondered how much a bit is worth to the US dollar? Because its two bits for one tomato and a tomato costs about $0.50 here in US, so a bit it .50 to the US dollar? Someone help me! 

[Singe 2,111]

I always wondered how much a bit is worth to the US dollar? Because its two bits for one tomato and a tomato costs about $0.50 here in US, so a bit it .50 to the US dollar? Someone help me! 

 

If a "bit" has pure metals like silver or gold, they would be worth more between tens to hundreds of dollars. Equestria has low currency values akin to like ancient societies.

 

A denarius has 3 grams of pure silver and would be worth about $300 dollars today.

Edited March 24, 2014 by Singe

[Colorful Respawn 399]

If a "bit" has pure metals like silver or gold, they would be worth more between tens to hundreds of dollars. Equestria has low currency values akin to like ancient societies.

 

A denarius has 3 grams of pure silver and would be worth about $300 dollars today.

Ok thanks, but I just want to know, how much is the exchange rate for the Equestrian bit to the US dollar?

[Fluttershutter 2,954]

Yeah, bits look like gold so they probably use a gold standard. But gold, like gems, is probably far more common in Equestria.

The gems are usually just thrown around as tips and gifts. Using them as currency would be really difficult because they're not a standard size and quality is also important in gems.