What is the point of wellfare?

[Specter]

Does it improve Standart of Living?
As far as i can tell, it just takes money away...

[Kayeka]

The idea is that poor people will have an income with which they can buy goods, which increases demand for those goods and so benefits your industry. I haven't done any math to see if that's how things work out. It sure feels easier to use the money to just build them more jobs.

[Specter]

It need some balacing or im doing it wrong. I was bleeding money like crazy.

[Elune]

It works best with gradual taxation, Set your taxes to very high and high welfare and you'll be loaded with low radicals because the upper class are a minority

[Rubyko]

Originally posted by Specter:

It need some balacing or im doing it wrong. I was bleeding money like crazy.

It's a massive investment and I really don't recommend you submit yourself to it unless you absolutely have to in order to avoid Radicals.

[Stewchops]

your economy has to be pretty huge for it to be beneficial

[kesat]

If it's a moneydrain, than there's an issue in your economy.

Wellfare is supposed to be paid to be paid to pops, who receive wages below the normal wage in your country (depending on the welfare-percentage). E.g. with poor laws and one level in social security then it would be paid below 50% of the normal wage.

Usually this would be the case, if there are provinces which are much less developed than the average province in your nation.

You can actually tell if there's an inbalance regarding normal wages when you are in the construction menu. You should see, that estimated costs for a new building vary due to wages.

[ShamusOReilly]

Originally posted by Specter:

Does it improve Standart of Living?
As far as i can tell, it just takes money away...

So far from what i've witnessed, increasing welfare is excellent.... if you have the economy to back it up. Standard of living will rise dramatically as long as you can sustain the new needs in goods from higher level pops. Consumer goods have a Standard of Living range if you look closely enough.

[TasteDasRainbow]

if you're bleeding money with welfare, it means many of your pops do not have gainful employment and are struggling to afford the goods necessary to live at their standard of living. Try providing jobs specifically in areas with high unemployment/peasants.

[Many-Named]

Originally posted by Specter:

It need some balacing or im doing it wrong. I was bleeding money like crazy.

kinda like IRL then lol

[Prown]

Welfare is there to help the few who cant' get a job

If it's bleeding you dry then this points to an inefficiency in your economy, You have too many unemployed.

Your options are to lower welfare and build up factories to slowly employ them, then crank it back up again when employment is better, or turn off welfare all together and let your people starve in the streets, this last option may result in a violent revolution.

Welfare is absolutely there to help the ruler not be over thrown, as nothing ends a government faster than a horde of hungry poor. Think of it less as handing money out to lazy people who won't work, and more of an insurance policy against violent uprisings.

It's an expense born out of too many poor, rectified only by giving them jobs and cheap goods.

[Shintai]

Its supposed to raise the consumption of unemployed by increasing SoL. But due to the massive balancing disasters in the game you end up with a runaway population instead.

[Zero, Dark Knight]

The problem with welfare laws and social laws like that, is that it also pushes up annual wage (minimum) and welfare bases pay on minimum wage, so you end up with unprofitable businesses which fire workers, which go into welfare payments.

Less goods= higher prices of goods.
Less workers= less sold goods = less income.
More welfare state= higher cost.

you have to know how these things will work out ahead of time before trying them.
You can fix them, but then it's all to do with the laws of "Incorporated states" vs "Unincorporated states" and where your businesses are competitive.

(I.E a logging camp in unincorp, vs a logging camp in incorp will pay different wages, as they're under different laws. - that's what 'corporated' means.)

but generally social security laws just provide your pops a higher SOL - at the cost of: everything else you've built: :/