Economy of Luthori



The Luthori Empire practices a free market economy, with very little government intervention. Inflation is very low due to the gold standard the Luthorian Pound is tied to and the economy generally grows at a fast rate with little to no recent slowdowns. Unemployment is almost consistently around 8%, taking an average of the unemployment rate of each Duchy.

Unlike most free market economies, the Luthorian economy is dominated by very large companies, which employ some 70% to 80% of the workforce, while small businesses employ some 15% of the workforce while the government accounts for just 5% to 7%. Despite often being governed by long established aristocrats, economic mobility is extremely high in the average Luthorian firm and it is easy to climb the corporate ladder. Almost every major company is a member of one of two trade blocks, the East Luthori Trade Syndicate (ELTS) and the Bane Consortium, which are large economic and business alliances in their own right. A large majority of Luthorian big business is made up of corporations, which are publicly traded on the Fort William Mercantile Exchange (FWME) or the Sandulka Stock Exchange (SSE), the nation's largest stock markets.

The Luthori Employer's Association (LEA)
defends free market economics and Luthorian entrepreneurship throughout the empire. The Central Bureau is located in Adlerberg and has connections all over the empire and is often described by malevolent tongues as "world capitalism's spider in the web". It is an economical hub for the Luthorian Empire. The LEA is also responsible for representing employers in labour disputes and is also a coordinator concerning colonial trade and exploitation.