An easy way to play

Discussion of the Economic Model in SR2010

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CaptainJack
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An easy way to play

#1 Post by CaptainJack » Sep 11 2006

I read some articles before and today I tried my way and it worked. Maybe someone has already mentioned it before but I still like to repeat it.
1. Adjust tax so that you only tax on imports, exports, and goods(under sales tax, ignore sevices tax). You need to tax the three as much as possible. Leave other taxes zero.
2. Adjust the markup of somestic sale price as high as possible except food and water, the latter set as -50%(Because you have already taxed 50% in step 1 and now refund it back so that you would keep the price of food and water as low as possible. Put all investment slide to the left.(you should not take any burden of the produciton).
3. Change the production as 100% of "demand" instead of "capacity" except of cosumer goods, which is the only important engin to drive your economy(But not too much, it depends on how much markup you set, you can see what I was doing if you continut to read). Don't rely on the world market because of your cost.
4. Export nothing and import as needed.
Now, you transfer all the inflation effect to your people! Now, you will have piles of money and try to double all budget as you wish.
Last edited by CaptainJack on Sep 13 2006, edited 1 time in total.

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Lightbringer
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#2 Post by Lightbringer » Sep 12 2006

very interesting, I'll have to give that a shot.
"Socialism is a philosophy of failure, the creed of ignorance, and the gospel of envy, its inherent virtue is the equal sharing of misery.” -Winston Churchill

Il Duce
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#3 Post by Il Duce » Sep 12 2006

...just to be clear - what region(s) are you playing using this paradigm?
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#4 Post by CaptainJack » Sep 13 2006

Il Duce wrote:...just to be clear - what region(s) are you playing using this paradigm?
The more poor the country and the population the country has, the more powerful the method.

In my experience, I played china. After 3 years, ?My treasure is now more than 70,000B and my daily income is more than 200b.
Last edited by CaptainJack on Sep 13 2006, edited 1 time in total.

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#5 Post by CaptainJack » Sep 13 2006

Also, the more poor the country( the less cost of each unit), the more markup you can set. For china, you can set as high as 400%(be sure leave them untouched, otherwise you cannot get them back as high as 400% as the GDP/c get bigger and bigger) and for german, you can only set them as high as 100%.

Also, you need to adjust the production slide. If you play poor country, you should builde as much comsumer good factory as possible(allso for rich country) and leave others meeting the demand. Let me make an example to show how much you should create the consumer good factory. If you set up the markup as 300% in the begging, you should not build more than 4 times the demand by people, otherwise you will lose money. I suggest to build 3 times as demand by people and keep the 100% capacity. The reason I emphasize the consumer goods factory is because that is the dominant role to decide gdp/c.
Last edited by CaptainJack on Sep 13 2006, edited 1 time in total.

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#6 Post by CaptainJack » Sep 13 2006

As my experience, the economics model of the game is by Say's law!
here is my obervation
1. The more you produce and the higer price you charge, the higher the GDP and the high consumption people made(not the comsuption of units but the comsumption price they will pay).
2. If you have enough factory and produce exactly the demand people need, the inflation is around 5% and the unemployment is around 4%.
Last edited by CaptainJack on Sep 13 2006, edited 1 time in total.

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#7 Post by CaptainJack » Sep 13 2006

3. Combining 1 and 2, avoid sending too much your people to work in factories other than comsumer good factory to keep the inflation low and the GDP/C high, which will result high comsumption and make your economy run! That is why I recommend 100% of demand production in factories other than comsumer goods.

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#8 Post by Il Duce » Sep 13 2006

...How are population flows in this paradigm? are you able to generate and sustain enough population inflow to support a reserve pool sufficient to man (or woman, as the case may be) all of the units you can afford to build?
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#9 Post by CaptainJack » Sep 13 2006

4. Say's law says "supply creat demand". Still in china's case, I have comsumption good factories as 4 times much as actually demand by people and I keep them all running. My sales is arround 390m and my cost is around 200m daily. If I change the production policy to "100% of demand", then I will get only 200m sales and 100m cost. Since the population and GDP/C are nealy the same within 1 or 2 day, why my sales drop to 200m(nearly a half drop)? The reason is because people can still get paid the same amout they produce(not the amount the goods are sold) by the corporation even the corparation cannot sell them all. It is mystirious. So people pretend they are rich and consume as much as they could earn. It is economics bubble but it runs well in the game. And the most important thing, the demand will get closer and closer to the capacity(if you stop building more factories at some time unless needed e.g. cannot buy from the world market), which means the inflation will finally get back to 6%. It may take a long time and I am still doing the experiment.
Last edited by CaptainJack on Sep 13 2006, edited 1 time in total.

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#10 Post by CaptainJack » Sep 13 2006

Il Duce wrote:...How are population flows in this paradigm? are you able to generate and sustain enough population inflow to support a reserve pool sufficient to man (or woman, as the case may be) all of the units you can afford to build?
I think you don't have to rely on the inflow of population. In china's case, I have the same population and I even close my border! You see, I transfer all inflation burden to people. The more you charge them, them more GDP/C without affect inflation.(The inflation is only affected by how much you produce not how much you charge.) If you have too much money, you could maximize every spending and the domestic rate will increase. As in china's case, the rate is now 69% and it is still increasing. Although the inflation is 60% and also it is increasing.
Last edited by CaptainJack on Sep 13 2006, edited 4 times in total.

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#11 Post by CaptainJack » Sep 13 2006

By the way, do not invest on the production. The higher the cost, the higher your income and the more rich the people. assume the domestic markup is 400%. if the cost is 30, you can get net income 120. Now, if the cost is 80, you could get 320. And the most important effect is your people will feel richer now than before and therefore comsume more and your gain will be more than 320. This economics model is so much funny and the game support the economics bubble. If your demand is relatively small compared to the WM, you can import everything from the WM at low price and sell them so much high in domestic. Of course, you need build piles of comsumer good factory to drive your economy up
Last edited by CaptainJack on Sep 13 2006, edited 1 time in total.

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#12 Post by BigStone » Sep 13 2006

CaptainJack wrote:[If people like to discuss it or need the save files, just email me
Good observations CptJack .... but there is no need for placing your private Email adres on the boards.If you want someone to contact you... a PM is enough... :wink:

For now... just go to war now and see what happends to your economy... :lol:

GoodLuck
NO MORE NOISY FISH [unless they are green & furiously]
I HAVE STILL A FISH IN MY EAR

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#13 Post by CaptainJack » Sep 13 2006

BigStone wrote:
CaptainJack wrote:[If people like to discuss it or need the save files, just email me
Good observations CptJack .... but there is no need for placing your private Email adres on the boards.If you want someone to contact you... a PM is enough... :wink:

For now... just go to war now and see what happends to your economy... :lol:

GoodLuck
Thanks for your advice. I am now at war with korea since the beginning of the game. I just put piles of artillery standing in a line and leave them alone.

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#14 Post by Il Duce » Sep 13 2006

...This is either the world campaign or the ww3 scenario, am I correct?

It s possible that some more extensive testing is worthwhile. In the WW3 scenario, it was my experience that 'Russia,' as a whole required very little econ stabilization from start - it produces cash flows similar to your descriptions without much effort. However, Westsib and other regions in the campaign starting from Russia have a very different set of balances - their industries have incredibly high production costs and rarely break below WM rates. Just building three or four units can send inflation up a half a percent - it can be touchy. Contrast South Africa - which seems to make money and research breakthroughs with almost no adjustment at all. I don't play North America at all, but I have noticed that each of the continental scenarios in the campaign pose unique econ and development problems (along with diplo and strategy) - so it is hard to generalize about them.
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#15 Post by CaptainJack » Sep 13 2006

My prediction the inflation will converge back to 5% failed. I am now in stable situation: (China)
GDP/c: 31,500
inflation:47%
Daily income:266b
Production: All sector produce 100% of demand except cosumer sector produce 200% of demand.

I just get a try on germany in europ, this works with minor change. After I did what I said, I add some taxes. It is not a big amount, the effective rate is around 20%(instead of 2% as I play poor country). Since in this setting, you can not set markup too high(around 100%), you just need to produce 100% of demand(except of comsumer sector), and adjust the consumer sector to get things work. Since in this case, you don't have much more job on mining, you can add more(15% of demand or you can try yourself) in consumer sector. But not too much because the markup in consumer sector is low. I am now having around 300m surplus daily and inflation is less than2%(due to jobless in some sectors). I think that is not bad. Just remember, if you put production on the 100% of demand and you are self -sufficient, the inflation rate will always be between 4% and 6%. Otherwise, it depends on how much you have excess job beyond actually required(100% of demand). I am not sure about the research effects, I always put it on the recommend level and It would not add extra effect on inflation.

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