How to increase GDP per capita + inflation

[jeg623]

I'm spending a lot on infrastructure and telecom and am part of many economic partnerships and common markets. Should I increace spending in education? Do I lower taxes as well, as they are at 35%? Also, I keep my interest rate at 65% to prevent the ridiculous rate of inflation that I get if I do otherwise. Can anyone help me on this as well?

[Siberian Frontier]

First, you don't need to lower inflation. Inflation is good for your economy. Also its automaticly(Don't know how to type it) controls itself.

Sector taxes should be on %10-15. When you wanna increase sector taxes; increase environment budget for balance it, also when you wanna increase Service taxes you must increase education, also education budget is a expensive option for Mid-High advanced countries. First increase environment and fill it to %100. So you can increase education now.

Personal Income Taxes should be 70 or something like that. When you start the invasion of neighbor countries and taking some regions population will increase then you can lower taxes SLOWLY. So the incomes gonna look like:
Income from taxes ≡ Lowering taxes to sensible level

[jeg623]

I'm just worried about the deficit that I'll get in the short term. But I'll try it.

[Ricoks]

An interest rate at 65% is the best way to stop any growth at all. Set it to 0% and keep it that way unless you play ZD's HDM mod (HDM 9x), which makes inflation uncapped & gives it more purpose. In vanilla game, base HDM & base UberFox - inflation caps at 10%, meaning you never need to fight it because it's too expensive to do so & really pointless (slows down growth greatly).

[jeg623]

Thanks

[ZDisket]

引用自 Ricoks：

which makes inflation uncapped

False, my edit caps inflation at 1000% and -1000% to avoid server crashes.

[Siberian Frontier]

引用自 Anarchist：

Inflation is terrible for your economy, it stops GDP growth and enables your economy to start stagnating

If PIT if over 50% your GDP growth will be very slow, always set to 50%

Sector taxes should be 0%, unless you want your GDP to go down

Hurr durr ♥♥♥♥ government rebel against ♥♥♥♥♥♥♥ fascist uga buga

[Ricoks]

引用自 Anarchist：

引用自 Helmholtz：

First, you don't need to lower inflation. Inflation is good for your economy. Also its automaticly(Don't know how to type it) controls itself.

Sector taxes should be on %10-15. When you wanna increase sector taxes; increase environment budget for balance it, also when you wanna increase Service taxes you must increase education, also education budget is a expensive option for Mid-High advanced countries. First increase environment and fill it to %100. So you can increase education now.

Personal Income Taxes should be 70 or something like that. When you start the invasion of neighbor countries and taking some regions population will increase then you can lower taxes SLOWLY. So the incomes gonna look like:
Income from taxes ≡ Lowering taxes to sensible level

Inflation is terrible for your economy, it stops GDP growth and enables your economy to start stagnating

If PIT if over 50% your GDP growth will be very slow, always set to 50%

Sector taxes should be 0%, unless you want your GDP to go down

That's not true. Excessive inflation is bad in real life, but in SP2 all it does is raise government expenditures (and since it's capped - it won't ever spiral out of control, fighting it wastes growth potential). PIT doesn't affect GDP growth, it only affects poverty etc. to a certain degree, but that has little real impact on your growth (while giving a lot of money that can boost your growth significantly through budget & investment).

Sector taxes above 0% don't make the "GDP to go down", they only slow down growth. 0% ST gives 50% resource production boost to the sector with such tax, lower with higher taxes (I guess 50% ST is neutral).

[rusticc2]

Income taxes don't really matter much, I usually set them to 80% and increase propoganda. Resource taxes are what you need to focus on. Don't go more than 20%

[Awstrd]

The easiest way to increase inflation is to set your interest rate to zero.

Spending on education will increase gdp per capita, as well as your country's production of the Services resource.
To my knowledge, spending on health will also increase your gdp per capita. This becomes very expensive, however.

I am fairly certain that having a high stability rating and increasing your country's ability to meet its resource needs will also improve your GDP per capita.

I would recommend investing in tourism, resource production, and education, as they will give you more money, and the latter two should also raise your gdp per capita effectively.

[Ricoks]

引用自 gadkinson：

Income taxes don't really matter much, I usually set them to 80% and increase propoganda. Resource taxes are what you need to focus on. Don't go more than 20%

True about the income taxes. Bad idea about propaganda - it serves no real purpose. If you have trouble achieving approval before elections - just change some laws that improve approval (ex. official religions & languages). Don't waste money on Propaganda, it kills your DR while giving pointless benefit (+ it fights against the efficiency of your Foreign Aid).

Resource taxes should be 0% in an optimal scenario to promote growth. Short-term cash gain is not as important as your ability to grow quickly in the long-term (unless you're playing a short game or a weak country, although weak countries should care even more about boosting the economy quickly).

[Ricoks]

引用自 Awstrd：

The easiest way to increase inflation is to set your interest rate to zero.

Spending on education will increase gdp per capita, as well as your country's production of the Services resource.
To my knowledge, spending on health will also increase your gdp per capita. This becomes very expensive, however.

I am fairly certain that having a high stability rating and increasing your country's ability to meet its resource needs will also improve your GDP per capita.

I would recommend investing in tourism, resource production, and education, as they will give you more money, and the latter two should also raise your gdp per capita effectively.

Not sure why you keep mentioning GDP per capita. Anything that increases the GDP also increases the GDP per capita, because the latter is just an indicator of your GDP per citizen (GDP divided by population or whatever the formula was).

Increasing country's production boosts GDP, so it's not "as well as", but "because it increases your country's production". Spending on Health Care is important anyway, on at least UberFox it boosted a few sectors & it's important for death rate and human development (high human dev = more taxes, high human dev = lower birth rate, thus need for lower death rate).

Investing in tourism is a good idea from the start (do max investment) because the way tourism works in the game is that it slowly works up your investment from the budget and then starts giving you income, always higher than what you have to invest in the end (IIRC human dev needs to eventually reach a high level tho). Developed countries can easily earn hundreds of billions a year from tourism after a tiny investment on full green slider.

Again you mention resource production increasing GDP per capita effectively, which is a very weird thing to say. Yes, boosting your GDP increases your GDP per capita (as long as your population growth isn't excessive)... I think that much is obvious lol.

[Ricoks]

And just to be clear - GDP per capita doesn't really matter in SP2. Your GDP does. China at 100 trillion GDP is almost economically invincible, even if it's per capita is much lower than anyone in the West. It only signals that China has a much higher potential than that and, at equal GDP per capita, would completely wipe the floor with any economy.

[rusticc2]

引用自 Ricoks：

And just to be clear - GDP per capita doesn't really matter in SP2. Your GDP does. China at 100 trillion GDP is almost economically invincible, even if it's per capita is much lower than anyone in the West. It only signals that China has a much higher potential than that and, at equal GDP per capita, would completely wipe the floor with any economy.

GDP per capita is quite benefical for countries with smaller populations. I've played iceland, and with 200K-1 million (Yes, 1 million, took some time) GDP per capita, I was able to achieve a 6 Trillion in GDP.

[Ricoks]

引用自 gadkinson：

引用自 Ricoks：

And just to be clear - GDP per capita doesn't really matter in SP2. Your GDP does. China at 100 trillion GDP is almost economically invincible, even if it's per capita is much lower than anyone in the West. It only signals that China has a much higher potential than that and, at equal GDP per capita, would completely wipe the floor with any economy.

GDP per capita is quite benefical for countries with smaller populations. I've played iceland, and with 200K-1 million (Yes, 1 million, took some time) GDP per capita, I was able to achieve a 6 Trillion in GDP.

It's the other way around. You achieved 1 million GDP per capita with 6 trillion GDP. I'm not sure what the point you're trying to make was. GDP per capita doesn't make GDP higher - it's literally just GDP per head of population. It's just an indicator of the country's "average" wealth.

[rusticc2]

引用自 Ricoks：

引用自 gadkinson：

GDP per capita is quite benefical for countries with smaller populations. I've played iceland, and with 200K-1 million (Yes, 1 million, took some time) GDP per capita, I was able to achieve a 6 Trillion in GDP.

It's the other way around. You achieved 1 million GDP per capita with 6 trillion GDP. I'm not sure what the point you're trying to make was. GDP per capita doesn't make GDP higher - it's literally just GDP per head of population. It's just an indicator of the country's "average" wealth.

GDP per capita is just the GDP divided by the population of a country, so while it's not directly tied, it is still rather important. A lower than average per capita is fine for nations with huge populations, but you can seriously benefit from monitoring GDP per capita. Also, it gives you bragging rights, so thats a plus.