The Economics Of Imaginary Companies

May 31, 2015 in Daily Bulletin

Europe has a thriving ecosystem of imaginary companies writes Liz Alderman:

  • Imaginary companies such as “Animal Kingdom” in France sell animal food.
  • They take into account their revenue, costs, and payroll. All these numbers are made up.
  • The imaginary company works with other imaginary companies such as banks and suppliers.
  • The companies have real offices, and real people working in them but that’s about the extent of it.
  • The imaginary money that each company’s employees make can be spent buying the products of other imaginary companies.
  • This ecosystem started as a government initiative to train students and the unemployed and get them used to working in an office environment.
  • Since the ongoing Euro problems began they’ve taken a crucial role in fighting long-term unemployment by keeping office skills fresh.
  • To fully replicate the European business experience, the companies will sometimes hold strikes complete with placards and upset employees.
  • The fake companies are successful. Up to 70% of those who go through it in France go on to find a job.

Read more about the World War 2 roots of these companies, how the real workers feel about working in a fake company, and more over here.

Source: The New York Times

Via: Marginal Revolution