I dont care much for starting new threads, so i'll just add it here, as its remotely on subject
Let me see if i got this right about the economy:
GDP/c raises IF i meet the consumer goods demand of the people (incl. some of the other goods ppl demand). If i dont meet them, GDP/c goes down.
Tested it, verified it, works as described. Got it.
So... the COST OF PRODUCTION goes up as GDP/c increases. Makes sense, labor costs more. The cost of production of goods is also affected by how much the input goods cost. Logical. As GDP rises, all costs go up. At some point, GDP is so high, because you keep on meeting the demands of your people, that you can no longer produce goods below marketrate.
So i've been thinking how i could reduce the cost of input goods. I tried to improve the efficiency of my facilities by building/relocating them in the highest supply zones i could, and i think that did help a bit with the price, but not much. It seems labor cost is the biggest factor. SO... I can either A) Import or B), if import not available produce just enough that i need to sell to my people/fill demand.
So as long as i dont produce more "expensive" goods than what my people can buy, my economy 'floats'. If i produce more and sell at market rate, i'm taking a 'hit' for no logical reason. So i try not to do that (micromanagement hell).
Ok.. so its a fact of life that GDP/c increases and my people get richer and richer. Yayy for them. But that makes them unviable to produce export goods. So how else can i make money? I tax them to hell and back, of course. Doesn't make me much money, but i guess better than nothing. Infact, i'm not convinced raising taxes gives me 'net' more money, as now they buy less of my overpriced goods. hmm...
Typically, in the real world *yawn*, richer nations move from a production nation to a 'service nation'. But thats not modelled... and thats ok.
But i'm wondering...... what is the best way to make money if your people get filthy rich? I read somewhere on the forum that his strategy was to export consumer goods. Well my question is, how the hell do you produce them at below market rate with such high labor costs??
