A basic advice and rambling on economy from the Khan

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The Khan
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Joined: Nov 06 2007

A basic advice and rambling on economy from the Khan

#1 Post by The Khan » Dec 11 2007

I have been fiddling with economics, woodoo style when I didn't have the wish to leave my tiny room, so I'll add a ragtag list of results here for other players:


Markup: It is true, a low markup leaves excess money in the hands of the citizens who will spend it to another stuffs like consumer goods, but that also has a limit. Fiddle with the markup to see if other sales change. An example:

I played Turkey, and I wanted to make absolute golden values for goods, step by step.

Make a save for returning after experimenting, cheat for immense experimental money. Then try this.

Set every item to almost free to see maximal purchasing value(which is the paramount thing in next step by happy citizens who see everything go free like their dreams. Best thing is, they are programmed to be considerate people, and "buy" no more than they need. Realism isn't always good :)

As far as I can judge

(I may be wrong)

Citizens give priority to foodstuff and water, THEN buy gas and consumer goods and electricity.

The two directly affect domestic approval, and deaths and births across the nation, so expect famines and crime if you charge too much for food and water.

For many nations, food and water production should be no problem, so unless you are enormously poor, I guess making the citizenry consume as much food and water as possible for maximum consumption and happiness. For Turkey, any domestic markup below +50% for food didn't change the food purchases, even when I maximized the taxes and other things to ridiculous levels just to be sure. For example, maximum consumption was 460080 units of food a day,increasing by a few hundred to a thousand.

Experiment this for your chosen country, and determine the way to:

Raise prices as much as NOT experiencing a drop in consumption the next day, but at least a microscopic increase. That ensures a good sale while milking as much cash as possible.

Water-Food-Electricity-Gas-Consumer Goods

If I am not mistaken, I suppose citizens spend in this priority.

So When you maximize water sales, go for food, then electricity etc. etc.

Of course, that is for a good production country. If you think producing things are a problem, or don't want to import hellish amounts of petroleum from an annoying neighbor, and deprive him of income, by all means, raise the price without seriously pissing off your citizenry. Of course, he'll also raise the price, and that is called a Trade war.

Who is hurt? The citizenry. hehe, when elephants fight, the grass gets hurt.

Anyways, feel free to export stuff above producing price for extra pocket money, I suppose, however, produce too much and inflation will ruin your purchasing power, so be sure to sell stuff to others crazy if you are inflating.

If I am not mistaken, stockpiling isn't good for inflation, except for munitions and industrial good.

Also, don't have qualms about reducing consumption and production if inflation is being a bitch above 5-6%. Even the price to build an emplacement starts to be annoying unless you are a monopolist 5000$-per-barrel-of-oil exporter in World War 3 Scenario.

Do that, and I THINK you may have a chance.

That is a moderatist approach, if you have a faster economic revival program, please send them to me. I really need one.

Also, if you are still lagging behind spending, be sure to stretch your production to export some more to cover prices and cash. Or increase prices and decrease production accordingly to increase cost-revenue ratio at the expense of happiness (hmm, dictators sould have no problems at this)

Buy technology from other nations when able to not to make your labs busy.

When fighting, fight dirty,deprive enemy units of supplies rather than smashing head-on unless you need military morale through kill ratio, capture any population centers for more purchasers. Leaving resource buildings in their control will deprive them of Taxes while being forced to produce, bankrupting them faster.Nothing like cutting a huge chunk of Iraqi army from its supplies and capturing every city then having a handful of...useless old Russian junk...Look at the bright side, they can be scrapped for ammo or sold for pocket money.

So long.

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#2 Post by tkobo » Dec 11 2007

Very interesting.I love to read tests like this.
This post approved by Tkobo:Official Rabble Rouser of the United Yahoos
Chuckle TM

The Khan
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Joined: Nov 06 2007

#3 Post by The Khan » Jan 21 2008

Hmm... Also, I have come to these assumptions too:

Goods tax is a direct drain on citizen pocket money as it influences prices of said goods directly, and raising it so far only makes them cry about too expensive wares. Directly reduces the potential of using consumer wares,petrol and timber.

Income tax is only good if you don't sell much, but want to get most of what you pay the citizens. European style. If your people do buy many things, raising it will reduce the quantity they spend on essential stuff. When I raised it, the agricultural,fresh water and electricity purchases plummeted, while the citizens didn't complain about consumer goods or timber much.

Small business and Corporation taxes, well, I think they affect employment, but I might be wrong. Raising them looks like it directly affects all areas of consumption, and affect employment.

Other taxes look like they are something similar, probably they just drain more money from citizens. I keep them zero.

Also, any help on reucing production costs are welcome. My worker fees doubled in a year!

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