Economics of the Free City

Greyhawk is faced with a problem: the volume of trade has declined by some 20% since the beginning of the wars. This is due both to a decline in the amount of surplus goods many countries can offer for sale, and the hazards of transporting what is available. Since much of Greyhawk‘s revenue comes from trade taxation, this has severely affected the city’s coffers.

There has been an increase in tax income from the lands newly ruled by the Free City, but this has, in large part, been offset by the extra expenditures needed to maintain garrisons to protect them.

At the same time, the city is beleaguered by desperate appeals for aid from Furyondy and Nyrond, although these relations must be covert (see Politics of Greyhawk). Nerof Gasgal and his advisers are being squeezed between diminished resources and the need for more expenditure. A range of changes to city life reflect this dilemma.

For the time being, no major tax changes are being applied to trade. Increased taxes, it is believed by some, would simply push the volume of trade down further, and possibly decrease revenue in the medium to long term. At least, those who hold this view have held sway in the heated arguments of the Oligarchy. So, extra monies must be found elsewhere. Glodreddi Bakkanin, the sinister head of the Greyhawk Revenue Service, has come to the fore with a range of ideas on this score,

First, the criminal code of Greyhawk has undergone significant change. Many crimes previously punishable by imprisonment now incur fines and forced labor (cutting city costs and increasing monies available for other purposes). Fines have been generally raised (increase heavy and standard fine values from FFF, p.12, by 10- 15%).

Forced labor means exactly that these days, and more work is demanded than before to pay for one’s crimes. (A sideeffect of this is that some Greyhawkers are losing jobs, increasing social tensions with refugees.) The workhouses of Greyhawk are grim places these days, but an increase in mortality is made up for by increased vigilance by the authorities which ensures a ready supply of new bodies.

A second big change is that the wealthy have been saddled with new taxes. Nobles must pay a 1 gp “entitlement tax” each week they are resident in the Free City. Temples must pay 5 sp per week for each resident priest; this has caused considerable friction with temples devoted to charitable works and the like (notably that of Pelor), but despite grumbling, the temples have paid the monies.

Ambassadors of foreign states are required to pay a Residency Fee for their establishments (100 gp per year), in addition to rents, plus 50 gp per person in their diplomatic entourage (Nerof cunningly got this accepted in the small print of the Pact of Greyhawk; see the following section).

The Fire Tax, ostensibly for rebuilding those parts of the Old City decimated by fire, has amassed a surplus. Some of the residents who lost property (and therefore are eligible for aid from the tax monies) died in the fire without survivors able to claim compensation. Some survivors of the fire moved to Verbobonc, Dyvers, or farther afield.

Nerof Gasgal has justified these tax increases on the grounds of decreased revenues from trade taxation, a plausible reason which most accept. He has also cunningly imposed a Gambling Tax, such that casinos and gambling dens must pay 5% of their profits or a fixed sum (as decreed by Glodreddi) each month. Since everyone knows that these places are run by thieves, and thieves rule the Free City, this gives the appearance that Nerof is being even-handed, which has helped to make these changes more acceptable to those paying out more tax. In actuality, half this levy is returned to the proprietors!

Finally, Glodreddi has a range of other schemes for raising money. The Directors created ten new petty-noble titles (Lord Warden of the Gnarley, Baron Puissant of Highroad, etc.) when political control was extended. These titles are actually quite meaningless in terms of power and authority (outside of very minor empowerments), but they sound grand, and they have effectively been sold to the highest bidder. A few refugees were able to bring money with them, and the newlyennobled Tenha Knight Pursuivant Protector of Grossettgrottell is believed to have coughed up some 15,000 gp for his mouthful of a title.

Each Needfest, these minor nobles meet with the Directors at a Grand Administrative Council, which helps swell their sense of self-importance (although the Directors completely ignore anything they say, for the most part).

Glodreddi is currently working on a scheme allowing purchase of special burial sites in the walls of Greyhawk, with commemmorative plates and plaques and suchlike for any who can cough up the cash. More schemes of this ilk are surely in the pipeline.