The economic thread

[Tobias]

Hello

I find this game very interesting, but I am having big troubles regarding the economy. I am playing as Denmark, so shouldnt be that hard, but struggling anyway.

I am not really here to seek advice. Just to make a thread where players can write there experiences and maybe reveal, the "holy grale" in this game when it comes to the economy part.

Hopes that alot of players will fill in some clever words regarding the subject.

[boomermojo]

Originally posted by gardinershow700:

Does anyone know how to create a "Housing" bubble

Freeze the rents, lower interest rates to minimum, heavily subsidise/exonerate banking and construction sector, build a lot of housing. Then all at once elimnate all welfare programs, unfreeze the rents, cut the subsidies and max the interest rate.
That should do it in theory, but why would you want to? Also the game will just say a generic market crash not a housing bubble.

[boomermojo]

Originally posted by French Catholic:

i succeed to get an positive budget with France, but i have trouble with the industry. Adjust Tax, lower expense, improve the work time influence the economy but not the industry

Industry is energy dependant, make sure you have an energy surplus. Positive trade balence or low price contracts of the required sectors helps (eg steel/cement for the construction sector). A maxed out eduction and research system seems to be the most effective for industry expansion in my experience.
But usually for developed nations you need to exonerate and subsidise to grow industry. According to the game manual exonerate increases manpower and subsidise increases productivity over time. So sectors with a productivity index over 1.0 probably only need to be exonerated to grow and sectors below 0.5 probably only need to be subsidised.

[boomermojo]

Originally posted by Steven2805:

Perhaps the largest jump in growth was signing oil deals with an OPEC country.

No point. You can't negotiate price with OPEC oil contracts, any contract signed will be the current OPEC price, it will most likely have a negative your economy in the long run because there will be less potential imports from countries selling oil below the OPEC price.

[☭☭☭Gomli Rizzdrip☭☭☭]

Did someone just say raising minimum wage increases growth????

How? Then companies lose profits, right? Or does purchasing power offset it?

Or did he mean to basically give free money to poor people to increase overall purchasing power, which would increase growth. (basically giving subsidies to a ♥♥♥♥♥♥♥♥ of companies via giving money to consumers)

[boomermojo]

Yes for staglfation it does. During stagflation the economy is actually shrinking from decreasing relative consumer spending.

Improveing the wealth of the poor and middle class is the healthiest thing a government can do for the economy. Despite of what all the proponents of trickle down economics would like you to think. The wealthy don't spend any money they're given because they're wealthy (can afford all their needs), drecreaseing the burden on companies will cause some investment and growth but only up to a point consumer spending and export demand will allow. If you decrease the burden on companies at the expense of the population this will decrease consumer spending in the long term (people need to spend more on services now provided by the private sector, hidden inflation).

Also its not a rediclous concept, Henery Ford increased the wages of his workers so they could afford to buy the model T.

[Skorkus]

Originally posted by Steven2805:

Playing as China I was able to remove all my debt and become 35% of the worlds economy, my strategy started with dropping company tax rated. Perhaps the largest jump in growth was signing oil deals with an OPEC country. The largest influence to becoming such a large % of the worlds economy was creating SPC ( Steel Producing Countries) Steel is used in so many industries and most countries don't produce enough... I was producing nearly half the worlds supply and managed to get Russia and India to sign up which if memory serves me right I had about 70% of the world steel production under "SPC". Over a 5 year span I pushed the price of steel up starting at around $300 and ending at around $1400.

Find out what your country produces and find out how you can either make it cheaper or sell it higher, you may not have the same power as China but the play is the same. Make a company want to make it in your country

Bro how up products price? Just subsidies?

[Gamebroker]

Hi, I am playing as Namibia.Since I started I have struck deals with and thus growing my economy. Now I hva come to a point where my Electrical Materials are doing very well. I have tryed to make a deal with the USA, since they need Electrical Materials and they pay good. The deal I have made would have doubled my state income since the value is 116.741 Billion dolars. But the problem is that after I made the deal, I see now effects on my economy. My state revenue have stayed the same. Since I though that the deal would take affect soon I started doing some improvements (upgarding my police system) and now I am in debt. I tryed to cancel the deal and then doing it again, but I still dont see any effects. My minister of economy did say that I have some 100 billion cash in surplus, but I dont see where it she got that number. Is this a bug or?

[patryczek]

Originally posted by Gamebroker:

Hi, I am playing as Namibia.Since I started I have struck deals with and thus growing my economy. Now I hva come to a point where my Electrical Materials are doing very well. I have tryed to make a deal with the USA, since they need Electrical Materials and they pay good. The deal I have made would have doubled my state income since the value is 116.741 Billion dolars. But the problem is that after I made the deal, I see now effects on my economy. My state revenue have stayed the same. Since I though that the deal would take affect soon I started doing some improvements (upgarding my police system) and now I am in debt. I tryed to cancel the deal and then doing it again, but I still dont see any effects. My minister of economy did say that I have some 100 billion cash in surplus, but I dont see where it she got that number. Is this a bug or?

No its not a bug - how i like to interpret contracts is: when you make a contract you buy goods as a government from your own economy and resell it to the one you made a deal with thus your government gains money and economy has a reliable client to sell its products to. Treasury is not included in your budget deficit you can find IT in budget tab when scrolling down, its essentially a reserve that covers your one time spending programs (like infrastructure) it also repays debt faster and creates its own revenue because its automatically reinvested (about 6% yearly) also, if your budget deficit will force you to take a loan you won't because treasury will cover for you and you will avoid going info debt

[Impantient Boy]

Originally posted by ☭☭☭Gomli Rizzdrip☭☭☭:

Did someone just say raising minimum wage increases growth????

How? Then companies lose profits, right? Or does purchasing power offset it?

Or did he mean to basically give free money to poor people to increase overall purchasing power, which would increase growth. (basically giving subsidies to a ♥♥♥♥♥♥♥♥ of companies via giving money to consumers)

I usually play for a while and start new games and from what I understand growth is energy demand and it's something like inflation in the game that needs a lot of attention now if we work the taxes correctly and gradually make small tax increases and some wage increases then we will manage to keep our purchasing power stable and growth reduced we will also increase profits and we will be able to invest more money or reduce debts.