Best Economics Path (possible spoilers)

[Black Wolf7777]

What is the best economics path on the Reformist path? I have a feeling I'm doing it wrong as government budget is in the minus.

[Bismarck234]

free market capitalism ,i think

[Black Wolf7777]

That's where I was going but I'm not sure if I'm doing it right, I invested in projects in poorer areas and all.

[Yeggman]

Running a deficit is fine.

[Psyentifik]

Not necessarily, investing can stimulate the economy. Going into debt can be a good solution sometimes.

I never pass on infrastructure since it's usually always popular (Clinton is a recent perfect example of this) and has the capability of generating economic return. I slash tax rates for all corporations because you would hope it leads to increased employment (through reinvestment and new investment of capital). I always engage in trade deals since we know the economic principle of comparative advantage. The one country that wants to renegotiate the trade deal is even a good deal because losing them as a trading partner should be much worse than losing a little bit in the deal (I haven't chosen the option where the deal falls apart because it seems to be a no-brainer to me). This should also stimulate economic growth since you are getting better prices for certain industries in your economy.

Also, you can leverage the excess oil you get from the southwest country to bolster your deal with the south country (forget names)

[stm8022]

Originally posted by Black Wolf7777:

What is the best economics path on the Reformist path? I have a feeling I'm doing it wrong as government budget is in the minus.

Having your budget somewhat in the negative isn't really end of the world (plenty of real countries increase their debt as investment in the future and this is a similar thing) Things only blow up if you go into debt too hard and too fast.

(on the other hand not being in debt can too generate some extra opportunities every now and then)

[RobOda]

Don't get into debt until a few events after the budget period. If you go into debt too early -3/4, you trigger a currency collapse.

So your threshold is -3 early on. Late game you can dip into -6/7 without too many issues.

[Cras]

It is pretty easy tho to survive the currency collapse, so I wouldnt be all that afraid of budget deficit. I ran -6 fairly early and got the black tuesday crash and the economy go to 1, but still managed to get it back up to full bars by the eleciton

[Black Wolf7777]

Not sure what to do about the tax code decision.

[Cally]

Just keep making investments, even if it puts you in deficit spending. Don't ever pass up on a chance to invest.

[Black Wolf7777]

Right, the tax decision however I'm not sure what to increase or decrease.

Maintaining seems to have negative consequences.

[stm8022]

Lowering small/medium businesses' tax at expense of hiking it up for the big corporations appears to work out (either that, or the other decisions can offset negative effect) though granted, the oligarchs won't love you for it, but if you put in effect business bailouts earlier, they can live with that. I imagine going with just a tax break to one side (or both) can have even better effect if you can afford it. Not sure about tax increase for small businesses and cut for the larger ones, didn't try it myself and while the oligarch-funded press will tell you this is absolutely the way to go, people of Sordland probably won't appreciate too much making things harder for them.