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Here's the thing though you as the government wind up paying for the full price of the construction sector still. So you build one sector using just wood and cloth. 12 points total. The private sector gets 1 of the 2 points generated and half the free ones, but has to pay for none of the goods utilized by the sector. If it costs 2.2k to maintain the construction sector goods and employees the government foots the full bill, verified that in the last play through. Seems a bit off, so I let Donald Trump buy the land but then I pay for the men and material to build his buildings and he get's all the profit aside from tax and full control. Seems wrong, however I don't know if that was done for some sort of balancing and hesitate to be overly critical.
I will say that it seems a double whammy on undeveloped countries like Argentina, probably goes unnoticed in larger nations. It therefore becomes "better" in the early game to simply use your 10 points until your economy is built up to the place where you can absorb the cost of at least 2 sectors able to build with iron.
That of course is a very simple point of view and doesn't include many other factors found in game which will alter things from that basic line. Still the general aim of attempting to slow development for smaller economies appears intended. Perhaps the thought was the AI building as well would actually offset this. However I haven't found that to be generally true in practice. It can be but again its the other factors of how a game progresses that makes it either become a benefit or hindrance. It will definitely be a consideration going forward. When to start growing the construction sector becomes a choice to be considered. Unless paradox finds that passing the private sectors construction costs to the government to make as little sense as I do. I suppose we will see.
So now I'm just about where I wanted to be for a successful start. I'm getting things in order nicely have some construction sectors, AI does the occasional weird thing but is overall helpful. Got some incite into how to help guide it. I've basically achieved my goals for a successful starting play through. Gonna run it out see how it goes and maybe go back and see if what I learn will let me make a united south america. Guess we'll see thank you to those who helped.