Economics In Equestria

by Sturm Panzer

Rating: everyone
Tags: My Little Pony: Friendship is Magic, Random
Length: 1633

An Essay of a Theory of Hybrid and Caste Economics

This is actually an Essay rather than a true story.

Is is a thought experiment that explores a potential economic system that could exist based on canon, with references from the series detailed inline as needed to support arguments.

Published 2011-09-11 07:18:06 UTC
Last updated 2011-09-12 14:05:36 UTC

Economics in Equestria

Economics In Equestria:

Theory of Hybrid and Caste Economics

By Sturm Panzer

Monetary Coinage:

The coins, (termed “Bits”,) used in Equestria show up a number of times, and are most commonly used by Earth Ponys. Likewise, Earth Ponys seem the be the ones most likely to possess or seek possession of them (EG: Applejack at numerous times) Usage of coins by Unicorn or Pegasus ponys seems rare.

These coins are all of a uniform size, shape and colour, which would indicate that there is only one type of coin in common circulation. This is unusual, but not unheard of (QV: Thaler - http://en.wikipedia.org/wiki/Taler )

The coins make a distinct light-weight metallic sound, which would seem to indicate that they are all made of some light-weight metal. Given the overall thickness of the coins, if they were made of most precious or even base metals, they would be very heavy to carry any significant number of them. This would seem to indicate that they are either an alloy (like modern coins), or they are made of some unusual lighter-than normal metal. Given that it seems unlikely that Equestria possesses the required technology to refine and smelt aluminum (2000’c temperature required to extract aluminum from raw ore) , the coins are most likely an alloy involving tin. Given the pale-yellow colour, which similar to polished brass, it seems likely the coins are made from brass. Brass would be easy to create, as it was manufactured for statues circa 2000 BCE.

The low metal-value of the coins would be deliberate, QV: Mining below.

Coins would likely be emblazoned for easy identification. Likely one side having the visage of Princess Celestia, the contents of the other side is more questionable. Perhaps the earliest coins would have a visage of Princess Luna on the other side, with that changing to an Image of Canterlot after her imprisonment, or any of a number of other significant events to create different series of coins for collectors. The new coins could have reverted back to Princess Luna on the reverse side.

Mining:

There is no evidence of mining on any noticeable scale in Equestria. Underground excavations seem to be done for a purpose specific for that excavation (making a basement/cellar/tunnel to another location/etc).

There is plenty of evidence of metallic tools/smithing/fabrication.

It’s well known that Unicorns can detect gemstones, even at a young age (“Dumb rock!”) Gemstones are often used to ornament clothing, including costumes worn by young ponys. The ease of acquisition of them by Unicorns, as well as the casual use of gems for ornamental use would give them a very low economic value.
It is likely that Unicorns would be able to detect metal ores in much the same manner that they can detect gems, using a very similar spell. Combined with the Unicorn’s telekinetic abilities, it would make location and extraction of metal ores very easy, with minimal damage to the environment.

Smelting could also be easily managed by using magical furnaces to generate the temperatures required. The liquid ore could be telekinetically moved by Unicorns from the smelter pots, directly to the moulds/dies for minting coins. The press/stamp for minting the coins could also be easily handled via telekinesis, as well as the gathering of minted coins. (QV Applebuck Season episode, Twilight moving apples)

Smelting and casting/manufacturing of other metal objects/tools could be handled in a similar fashion by Unicorns.
The ability of Unicorns to readily detect and excavate gemstones and “precious” metals (gold, silver, etc) means that the coinage and economic standards can not be based on the value of a rare earth (EG: Gold Standard). Instead the economic standard must use an artificially maintained rule to prevent economic chaos. An artificially valued currency combined with a large barter system would fit this requirement.

Craftsmanship:

Crafting of items can be managed by Earth Ponys, which seem particularly adept at ingenious inventions (QV: the ‘train’ and Pinky Pie’s inventions, including the flying machine.)

The majority of the manufacturing/building seems to be done by Earth Ponys, despite the ability of Unicorns to be able to do the job faster and easier. This also goes for harvesting crops, which seems to be almost exclusively an Earth Pony occupation.

Literature would appear to be the opposite, as a Unicorn can effortlessly write entire pages of text as fast as they can think it, while Pegasus and Earth Ponys must use a pencil held in the mouth, making any significant amount of writing difficult and arduous.

Fine manipulation is required for crafting works of art, fancy clothing and other high-value items, making them difficult for an Earth Pony or Pegasus to manage, especially when compared to the degree of precision and speed that a Unicorn can manage.

Races as Castes:

Each of the three races of Pony (Unicorn, Pegasus and Earth) live in significantly different lifestyles, roles in Equestrian society, as well as different mindsets.

Earth Ponys:

Earth Ponys appear to be the most numerous race of pony. They seem responsible for most of the construction, manufacturing, and agriculture. They build and settle the new towns (QV: Appaloosa).

In major settlements (Manehattan, Ponyville) Earth Ponys outnumber Unicorns by roughly 10-1 (An average low of 8-1 and an average high of 12-1 was observed in random sampling of crowd shots.)
Earth Ponys make up the vast majority of “public service” workers (Mr&Mrs Cake, Aloe/Lotus, Octavia/other musicians, most waiters/servers, Cheerilee the teacher, Mayor Mare)

Pegasus Ponys:

Pegasus Ponys are primarily tasked with weather control duties. They have a factory in Cloudsdale where they produce weather. Presumably their efforts are to enhance/alter existing weather patterns, to create rain when needed for crops, as well as clearing clouds to prevent too much rain, or to ensure certain days are clear for special events.

Almost all Pegasus Ponys seem to have at least rudimentary training/skill in weather control, with few exceptions (Fluttershy, who spent most of her life on the ground.)

Pegasus Ponys also form the bulk of Princess Celestia’s Royal Guard.

In addition to having the weather factories, Cloudsdale is also the home for most Pegasus Ponys, as it seems rare for them to live or spend much time in the Earth Pony’s communities. (Few Pegasus Ponys are seen in crowd shots of Ponyville, and none are seen in the few Manehattan shots.)

Unicorn Ponys:

Unicorn Ponys are most commonly found in Canterlot where they have the highest density of population, but still being outnumbered there by Earth Ponys by roughly 4-1 (as seen in a random sampling of crowd shots)

Given the innate ability for all unicorns to use magic to various degrees, their supremacy over the other races of Ponys is virtually assured. They certainly form the inherited royal bloodlines (QV: Prince Blueblood)

The small numbers, which are highest in the Capital, along with magical ability, and royal blood, it is not difficult to make the further extrapolation that Unicorns, as a race, are effectively the Noble Caste.

A limited number of Unicorn Ponys are found in the Royal Guard. It seems likely that they would be leaders/officers. The Unicorn Guardponys seen were Princess Celesita’s escort/bodyguards (Cutie Mark Chronicles episode)

Fame:

Fame is the term I’ve chosen to represent a level of social status within Equestrian society.
It’s an unspoken, unmeasured indicator of status. Each pony would be aware of the level of another pony on a fairly instinctive level. Wealth, magical power, birth, occupation can all affect one’s Fame.

Fame would also depend on location. EG: All of the Mane 6 are well-known in Ponyville, but they are relative unknowns in Canterlot.

Accident of birth can result in a much higher level of Fame (EG: Prince Blueblood). Likewise, changes in social status can radically affect Fame (EG: Twilight becoming Princess Celestia’s personal pupil.)

Actions can affect the level of one’s fame for good and bad: Defeating Nightmare Moon. Rainbow dash wining the Flying contest. And so on.

An individual’s occupation can also affect one’s Fame.

A Pegasus Pony would gain Fame for working in the weather factory and for weather control (EG: Rainbow Dash). Even more so as a member of the Royal Guard, whom even Twilight, (the Princess’s pupil,) had to obey.

A Unicorn could gain Fame as a crafter of some type. (EG: Rarity)

Earth Pony’s ability to gain Fame would be much more limited, but those working could gain Fame (Applejack), or by sheer popularity (Pinky Pie).

Fame as Currency:

Fame is more than just status. It’s effectively currency of a sort.

An individual of sufficiently high Fame can expect certain demands for good/services be met by those of lower Fame. Examples of this are often seen in the series where the Mane 6 are get things (often food) with no payment given for them.

Those of lower Fame receive payment for goods and services in the form of a small increase of Fame just from having the patronage of a high Fame pony. (EG: Mr&Mrs Cake would have gained greatly by hosting Princess Celestia for tea.)

Those of higher Fame may simply refuse an offer of service from a lower Fame pony, denying the lower Fame pony the chance to gain Fame from the higher Famed pony’s patronage. This may be more common when high Fame ponys see a low Fame one trying to act above their perceived station (EG: Applejack only got one customer at the Grand Gala, and they paid in bits.)

Fame would literally function as an unspoken unit of barter, with ponys parlaying meagre amounts of it in exchange for goods and services.

Disclaimer:

The concept of ‘fame as currency’ was first detailed (AFAIK) in the book “Destiny’s Forge” by Paul Chafe (Baen Books)

The Kzinti “Strakh” was adapted by me to fit into a more hybrid, caste-based economy.