How does the economy work

[tkarlsen205]

I have tried to tinker with the economy in the game to see which things increase the gdp per person metric but I cannot work it out. It says in the description of corporate taxes that if you decrease them wages might go up but I do not know what else works in this game for it.

[js29095]

The only things that improve the economy is sinking money into education

[tkarlsen205]

Originally posted by js29095:

The only things that improve the economy is sinking money into education

Ugh thats so annoying because both as president and governor i gave funding to all the possible education legislation. As governor of texas my academic score is way above national average.

[js29095]

Originally posted by tkarlsen205:

Originally posted by js29095:

The only things that improve the economy is sinking money into education

Ugh thats so annoying because both as president and governor i gave funding to all the possible education legislation. As governor of texas my academic score is way above national average.

yea economic simulation is very simple, and it will be a while before it improves

[tkarlsen205]

Originally posted by Somnium:

If you want to be a competent economic politician, don't focus on policies based on right-wing economic theory. the nation's beneficial direction is to complete the welfare state system in this game ...like germany?

Per capital & absolute poverty are exclusive -> absolute poverty falls, per capital rises. so there are five ways to reduce absolute poverty.

1. Increase social security, medicare(+medicaid), and unemployment benefits spending.
- moderate Republicans welcome this, so bipartisan cooperation is possible
- it is most effective
2. increase tax deductions/exemptions with high taxes.
- simply, it gives money to the poor-middle classes ( income distribution )
- these are increase the effect of income distribution
- flat tax is better than income tax in income distribution, so based on flat tax and the income tax rate is adjusted for each income tax bracket
3. increase minimum wage
- the effect varies from state to state
4. Increase education spending
- it is a long-term investment
- 1, 2, 3 are short-term. you can see the effects right away
5. high level of public service
- it is a good springboard for boost the economic.

Plus, infrastructure investment also helps solve unemployment.

About taxes, property tax must be handled with caution. the goal is income distribution, not property distribution.
Payroll taxes have little effect on income distribution ( paid equally regardless of each income bracket ). so deficits in Social Security & Medicare should be allowed.

Why economies naturally decline over time?
My guess, the increase of minoritie groups ( africans, hispanics ) & the decline of the oil/coal industries. Maybe Texas, Alaska etc.

Ill try it but i always do this. My politician is always a very liberal very liberal preset and I implement most things to get a welfare-esque state

[tkarlsen205]

update the economy is tanking. Academic score is 15.6 and I have been governor for 6 terms. Even without me touching anything the economy loses $100. When i do all the things mentioned it still tanks

[tkarlsen205]

Originally posted by Somnium:

Originally posted by tkarlsen205:

update the economy is tanking. Academic score is 15.6 and I have been governor for 6 terms. Even without me touching anything the economy loses $100. When i do all the things mentioned it still tanks

Look at metrix's budget(revenue/expenditure) and treasury fund. maybe due to a lack of fund value.

Oh that could so be it. I was just pouring as much of the surplus into the government services. Still tho why would that have an impact on gdp

[tkarlsen205]

Originally posted by Somnium:

Originally posted by tkarlsen205:

update the economy is tanking. Academic score is 15.6 and I have been governor for 6 terms. Even without me touching anything the economy loses $100. When i do all the things mentioned it still tanks

Look at metrix's budget(revenue/expenditure) and treasury fund. maybe due to a lack of fund value.

Im going to try to do another run from the beginning see if anything works. Thanks so much tho

[Erich Bui]

I abolished Social Security and Medicare, shut down food stamps, decrease TNAF.
But I dumped all the tax money into Education, Veterans, Infants, nutrition for moms,.etc
My tax plan is I don't tax people who earn less than the 2nd tax bracket at all, but really high tax rate for people who earn more money (this can be decreased when the country is free from debt and enjoy a huge surplus). Corporate tax I set at 50% (this one I never decrease).
For minimum wage, it depends on how rapidly the income increase.
I enacted Universal Healthcare, but with a 1% tax rate and the equivalent benefit. This is just to make people feel good without hurting the people's pockets. This is a win-win.

My economic plan is basically the 1920s Progressive thing, where it's mostly free market under a strong government's watch.

My immigrant policy is extremely strict, I shut down all the visas and dumped a lot of money into the DHS as a result of a 0 illegal aliens country.

With all that combined, the country's economy surged, the income reached $100,000 in 2130.

[Erich Bui]

Originally posted by Somnium:

Originally posted by Niggoda:

I abolished Social Security and Medicare, shut down food stamps, decrease TNAF.
But I dumped all the tax money into Education, Veterans, Infants, nutrition for moms,.etc
My tax plan is I don't tax people who earn less than the 2nd tax bracket at all, but really high tax rate for people who earn more money (this can be decreased when the country is free from debt and enjoy a huge surplus). Corporate tax I set at 50% (this one I never decrease).
For minimum wage, it depends on how rapidly the income increase.
I enacted Universal Healthcare, but with a 1% tax rate and the equivalent benefit. This is just to make people feel good without hurting the people's pockets. This is a win-win.

My economic plan is basically the 1920s Progressive thing, where it's mostly free market under a strong government's watch.

My immigrant policy is extremely strict, I shut down all the visas and dumped a lot of money into the DHS as a result of a 0 illegal aliens country.

With all that combined, the country's economy surged, the income reached $100,000 in 2130.

I tried this today and did it pretty well. this economic growth model is based on lower tax rates for the poor & middle classes.

raise taxes ( excessive corporate tax ), progressive tax ( equity of taxation ), and fiscal conservativism ( = fiscal soundness )

when low-income people pay taxes, they pay universal heath care's payroll tax instead of income tax etc. but i think it would be better to change the payroll tax to the flat tax with deductions/exemptions.

Even if it is not universal healthcare, it can be replaced with social security / medicare, or public house is also okay.

regarding costs, anti-immigration policies & high DHS spending can be wasteful. instead, raise taxes and lower tax rate for the poor-middle classes. It helps immigrants, too. perhaps resolving the illegal immigration problem through pathway of citizenship is less costly.

of course, don't have to pay off all federal debt. enough to pay interest.

it overall good economic plan, bro :D

I mean yes you need to sacrifice something like homeless rate, but for the life expectancy, it's not too bad, in 2130, it reached 110 years for life expectancy in my save. And the death rate has been going downhill, the birth rate is stable and unchanged.

For the immigration policy, you can modify it whichever way you want, but personally, as a patriotic immigrant, I'm every hostile with mass immigration, that explains why I pushed so much extreme policies on immigration, all those years with absolutely no amnesty and the illegal immigrants dropped to 0 in 2132. But for your case, you can make it more moderate, much less extreme than me and I think I will work just fine. It's not necessary to follow my immigration policy, you can modify it.

My economic principles are a mixbag, a combination of free market and socialism, a free market needs the hands of the government to make it functional. Kinda like 1920s Progressivism.