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If I remember correctly not having electronics reduces their happiness just a little, but as long as it's above 80% it's fine.
The more workers you have the more you need to provide to them and especially if you cannot use the workforce effectively it is a waste of money. 200 workers can achieve a lot and if you take care of them they will multiply over time. It is not so expensive to provide some clothes and electronics for 200 workers but it is quite expensive to provide this to 2000 workers in the beginning.
So true. I also start with only a couple hundred people for construction, but after about 10 years I have trouble keeping up building as fast as the population grows. Though part of that is me building independent towns/villages across the map that specialize in a single industry rather than a single city, so that's a lot of time spent driving for the construction yard.
But your biggest expense is immigration and labor. If you cut those down, you'll save a ton of money. Also, there is a nice mod for a small steel factory that helps in the early game, as that's your largest construction expense.