GDP issue will playing Japan in the Southeast Asia Campaign

scott817 · Post by **scott817** » Jul 31 2005

Well I start the campaign by setting the overall tax rate at 60% and all domestic mark-ups at 30%. I streamline the industry and produce only to demand and I build synthetic fue plants. My aim is to reduce the trade deficit.

As for research I kept it at the max.
Recommended spending on social services
GDP grows at a rate of 90 a day
Initial GDP is 31,450
As soon as it hits 32,000 it drops 500-600 pionts

Next try is to leave all things constant but change the research rate
I place research at the recommended spending
GDP grows much slower, about 10-20 per day
As soon as it hits 32,000 it drops 500-600 pionts

Next try is to leave all things constant but change the tax rate
I drop taxes by 10 % to a overall of 50%
GDP grows much slower, about 10-20 per day
As soon as it hits 32,000 it drops 500-600 pionts

I kept on doing the same changes with both domestic pricing and social spending.

The only thing that I can assume is that unable to export at a profit due to the fact China has a GDP of 3,000 and the effiency cost raise the per unit cost.

Please I am open to all suggestions

The_Blind_One · Post by **The_Blind_One** » Aug 01 2005

Hmmm I am playing Panama, my unemployment is now 1.6% and my GDP is about 15600, panama is still growing with something like 30 a day but everytime it hits 16000 it drops back to 15600. I think this is because my unemployment is 1.6% and it is impossible to lower unemployment even further and hence my region can't increase their income as it is dependent on the amount of jobs

Don't know about you but my economy is now stagnant.

The_Blind_One · Post by **The_Blind_One** » Aug 01 2005

After checking the logs, I found that the game resets the initial GDP from the start of the game, since the game has to recalculate everything it sort of resets the GDP back a couple of hundred $$$

scott817 · Post by **scott817** » Aug 02 2005

Is there a way to stop the program from reseting the GDP.

Post by **George Geczy** » Aug 02 2005

I'm not sure what you mean by 'resets the initial GDP' - please provide more details and I'll try to answer that. The "start of game" GDP value is never used to 'reset' the value at any future point, so I'm not sure what you're seeing.

Regarding the Japan/China GDP issue - yes, it is difficult for Japan to continue to raise its GDP above 32,000 especially with low-wage China as a neighbor. I think this is a somewhat realistic scenario, as GDP growth based on exports often finds itself limited by lower prices from offshore production. So, as GDP rises and unemployment falls, cost of goods rises to the point where exports cannot compete, and the economy go through an 'adjustment' of sorts. In fact there is more than just exports as part of this GDP/unemployment/inflation/growth cycle, it is quite a mix.

Regarding the Panama "capped out" issue, it is also true that, given a limited period of time, the economy of a low-gdp region will often cap itself out and be "too hot" to grow any further. Sort of the "Rome wasn't built in a day" theory. It is not possible to turn a relatively low-skilled workforce such as found in Panama into a relatively high-skilled "first world" workforce in just a matter of months.

-- George.

The_Blind_One · Post by **The_Blind_One** » Aug 07 2005

I'm not sure what you mean by 'resets the initial GDP' - please provide more details and I'll try to answer that. The "start of game" GDP value is never used to 'reset' the value at any future point, so I'm not sure what you're seeing.

Oops my bad, I see how I saw that wrong now.

Regarding the Panama "capped out" issue, it is also true that, given a limited period of time, the economy of a low-gdp region will often cap itself out and be "too hot" to grow any further. Sort of the "Rome wasn't built in a day" theory. It is not possible to turn a relatively low-skilled workforce such as found in Panama into a relatively high-skilled "first world" workforce in just a matter of months.

But is it possible ingame or does the scenario or game mechanics just not allow it? I'd like to see my little country grow from shithole to superpower. Or is it that u start the game with a certain gdp and u can influence the gdp but u can't actually get any REAL growth in the economy

as in, I start out with a gdp/c of 8000 and unemployment 7%, and 2 years later I have gdp/c 12000 and unemployment of 7%

, is that possible? (and not by means of seriously overinvesting)

My experience is that whatever the INITIAL GDP is of the region, u can temper with the GDP of the region but it is always bound tot he initial gdp, therefore increasing ur gdp in a region will always result in less unemployment and more inflation. Hence real gdp growth would be impossible if this was true. U could only FINE TUNE ur economy, but u can't actually grow it

Any comments on this?

Post by **George Geczy** » Aug 07 2005

The_Blind_One wrote:My experience is that whatever the INITIAL GDP is of the region, u can temper with the GDP of the region but it is always bound tot he initial gdp, therefore increasing ur gdp in a region will always result in less unemployment and more inflation. Hence real gdp growth would be impossible if this was true. U could only FINE TUNE ur economy, but u can't actually grow it

Regarding "long term" trends (greater than one year of gameplay) it turns out that this was, for the most part, true, and the engine did include some artificial limitations to how a third-world economy can grow. (These limitations tend not to show up in the Western economies, ie starting GDP/c greater than $15,000 or so).

Per my post in other threads, I have (for the upcoming 'Update 3') adjusted and modified the economic model, in particular the relationships between inflation, economic growth, and the GDP/c. One key change is that the economies will gradually 're-align' themselves to their newer, more wealthy status as their GDP grows, so that continued smooth growth is possible. Note that this is a long-term trend, and will not really be apparent in shorter games.

-- George.

The_Blind_One · Post by **The_Blind_One** » Aug 07 2005

I know ur a guy and all and I know I am guy and all.

*kisses George*

Thank you thank you thank you...I luv u man, *cries* dream come true!!!!

BigStone · Post by **BigStone** » Aug 07 2005

Risking that the international community is gonna think that the Netherlands are overpopulated with sissies.... I do too

The_Blind_One wrote:
*kisses George*

Proost

The_Blind_One · Post by **The_Blind_One** » Aug 07 2005

biertje?!

Daar drink ik wel ff op hoor man

Nu alleen nog een scenario maken waarin we belgie en luxemburg hun een beetje hollands staal kunnen laten voelen

lordrune · Post by **lordrune** » Aug 20 2005

George Geczy wrote:
Per my post in other threads, I have (for the upcoming 'Update 3') adjusted and modified the economic model, in particular the relationships between inflation, economic growth, and the GDP/c. One key change is that the economies will gradually 're-align' themselves to their newer, more wealthy status as their GDP grows, so that continued smooth growth is possible. Note that this is a long-term trend, and will not really be apparent in shorter games.

-- George.

I'm very happy to hear that

the way the game treated full-employment economies in the current version makes me tear my hair out, despite all the fun I have on the military/management side.