Inflasion frustration

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Saisio
Warrant Officer
Posts: 25
Joined: Jun 03 2017
Human: Yes

Inflasion frustration

Post by Saisio »

Can someone kindley explain to me?

With more annual taxi income and mostly right under founding on social spendings, why does my inflation still rise?
Futher which of the social expenses is the most keen to raise inflation?

Kindley Regards
Saisio
way2co0l
Brigadier Gen.
Posts: 687
Joined: Nov 29 2010
Human: Yes

Re: Inflasion frustration

Post by way2co0l »

Saisio wrote:Can someone kindley explain to me?

With more annual taxi income and mostly right under founding on social spendings, why does my inflation still rise?
Futher which of the social expenses is the most keen to raise inflation?

Kindley Regards
Saisio
Inflation is directly tied to unemployment. When unemployment is low, inflation rises, and does so even faster the closer you get to no unemployment at all. Raising taxes and reducing social spending don't directly effect inflation, but rather effect jobs which in turn does effect it. Cutting back on construction, production, military spending, research, health care, education, ect all reduce the number of jobs and thus increase unemployment, reducing inflation at the same time.

Also keep in mind that it's typical for it to rise a lot during the first few months to a year in the game as everything tries to stabilize. It's possible to prevent it from rising but it requires some pretty harsh policy choices in order to accomplish that, and will severely limit your ability to construct new facilities.
Saisio
Warrant Officer
Posts: 25
Joined: Jun 03 2017
Human: Yes

Re: Inflasion frustration

Post by Saisio »

way2co0l wrote:
Saisio wrote:Can someone kindley explain to me?

With more annual taxi income and mostly right under founding on social spendings, why does my inflation still rise?
Futher which of the social expenses is the most keen to raise inflation?

Kindley Regards
Saisio
Inflation is directly tied to unemployment. When unemployment is low, inflation rises, and does so even faster the closer you get to no unemployment at all. Raising taxes and reducing social spending don't directly effect inflation, but rather effect jobs which in turn does effect it. Cutting back on construction, production, military spending, research, health care, education, ect all reduce the number of jobs and thus increase unemployment, reducing inflation at the same time.

Also keep in mind that it's typical for it to rise a lot during the first few months to a year in the game as everything tries to stabilize. It's possible to prevent it from rising but it requires some pretty harsh policy choices in order to accomplish that, and will severely limit your ability to construct new facilities.
One thing is for sure, is delicate game and interesting.

And tywm for the pointers there, i usally get a inflation rise 1 year before an election duo to my DAR is to low, since i raise social spendings and decrease taxes, to get the required DAR to win it.
One other thing I have been noticeing once i decreases my education spendings suddenly i get an high population increase in turn, guess stupied people mass produce.

One other question along the board, I guess everything is backed up by your total population?
way2co0l
Brigadier Gen.
Posts: 687
Joined: Nov 29 2010
Human: Yes

Re: Inflasion frustration

Post by way2co0l »

Yeah, most everything is tied to tons of other things. It gets a lot easier once you learn how all of those connections work. As for birth rate, education does play a role yes. Now, I don't know the exact ratios or limits, but in very general terms you'll see your birth rate rise at lower education levels and decrease at higher education levels. I think the intent is to simulate knowledge of family planning where those that are less educated in that sense would be more willing to raise a family regardless of whether or not they have the financial means to support them and generally result in an increased birthrate as a result.

Your population itself plays a major role in quite a few things yes. The amount of taxes you'll receive, but also the expense of social spending as well both increase for larger and higher GDP populations. Military personnel and even the number of economic buildings you can create. Every single new facility such as a power plant allows for more people to work. A country with a small population might be able to build a single building and watch their unemployment go down, but a country with a larger population might be able to build dozens before it sees a similar effect.

Keep in mind a few things when it comes to production, as that tends to be one of the largest drains on workforce employment.

Setting production sliders to meet demand is one of the easiest ways to control inflation as it effectively limits the number of facilities that are being worked. Let's say you're only producing at 60% of capacity to meet your country's electricity demand and you have 100 power plants. That effectively means each of your plants is only running at 60% capacity and there are still a ton of available jobs that haven't yet been filled. Turn it up to 100% of capacity and they will need more workers to meet that. But the problem is that you're still paying for all of these half used facilities. To save costs or streamline production you can shut down 40 plants in this case to save on operating expenses. Now, I don't mean to dismantle them. There's an option to turn a facility on or off at will, and feel free to ask if you don't know how to do that. But other than just saving you money from maintenance, it also allows you to choose exactly which buildings continue to run, so you can shut down the buildings that are in the lowest supply areas of your country and keep the ones that are in your better supplied territory running. Supply has a massive effect on production efficiency so you should always target high supply areas for production. Not only will you be saving money, but your production will be far more efficient as a result.

Not everyone knows but there is a background workforce that simulates small businesses and the like. You can shut down every single building in your country and still continue to have a large active workforce even though none of your buildings employ them. Unlike buildings you control, you don't have any direct control over this workforce, but you can influence it to some extent, social spending and taxes being the main ways. Raising education or health care spending results in teachers and doctors behind the scenes for example. Reducing corporate or small business taxes will encourage new businesses to open behind the scenes which will also hire new employees. It's important to keep that in mind when you're trying to control inflation because if you set policies that are too friendly to those areas then it will reduce your unemployment rates and even building a single additional building can cause your inflation to skyrocket.

Just some stuff to keep in mind. :)
Saisio
Warrant Officer
Posts: 25
Joined: Jun 03 2017
Human: Yes

Re: Inflasion frustration

Post by Saisio »

Thanks do your pointers, Union of Americas is running smother or atleast the goverment does aka me. Started out as Brazil in the Cold War start, are now Laughing.

On the background corporate stuff, I guess raising those taxes to high will have huge negative impact on DAR?

Speaking of DAR, is it best to run that with low taxed and high Domestic prices or high taxes and low domestic prices?
way2co0l wrote:Yeah, most everything is tied to tons of other things. It gets a lot easier once you learn how all of those connections work. As for birth rate, education does play a role yes. Now, I don't know the exact ratios or limits, but in very general terms you'll see your birth rate rise at lower education levels and decrease at higher education levels. I think the intent is to simulate knowledge of family planning where those that are less educated in that sense would be more willing to raise a family regardless of whether or not they have the financial means to support them and generally result in an increased birthrate as a result.

Your population itself plays a major role in quite a few things yes. The amount of taxes you'll receive, but also the expense of social spending as well both increase for larger and higher GDP populations. Military personnel and even the number of economic buildings you can create. Every single new facility such as a power plant allows for more people to work. A country with a small population might be able to build a single building and watch their unemployment go down, but a country with a larger population might be able to build dozens before it sees a similar effect.

Keep in mind a few things when it comes to production, as that tends to be one of the largest drains on workforce employment.

Setting production sliders to meet demand is one of the easiest ways to control inflation as it effectively limits the number of facilities that are being worked. Let's say you're only producing at 60% of capacity to meet your country's electricity demand and you have 100 power plants. That effectively means each of your plants is only running at 60% capacity and there are still a ton of available jobs that haven't yet been filled. Turn it up to 100% of capacity and they will need more workers to meet that. But the problem is that you're still paying for all of these half used facilities. To save costs or streamline production you can shut down 40 plants in this case to save on operating expenses. Now, I don't mean to dismantle them. There's an option to turn a facility on or off at will, and feel free to ask if you don't know how to do that. But other than just saving you money from maintenance, it also allows you to choose exactly which buildings continue to run, so you can shut down the buildings that are in the lowest supply areas of your country and keep the ones that are in your better supplied territory running. Supply has a massive effect on production efficiency so you should always target high supply areas for production. Not only will you be saving money, but your production will be far more efficient as a result.

Not everyone knows but there is a background workforce that simulates small businesses and the like. You can shut down every single building in your country and still continue to have a large active workforce even though none of your buildings employ them. Unlike buildings you control, you don't have any direct control over this workforce, but you can influence it to some extent, social spending and taxes being the main ways. Raising education or health care spending results in teachers and doctors behind the scenes for example. Reducing corporate or small business taxes will encourage new businesses to open behind the scenes which will also hire new employees. It's important to keep that in mind when you're trying to control inflation because if you set policies that are too friendly to those areas then it will reduce your unemployment rates and even building a single additional building can cause your inflation to skyrocket.

Just some stuff to keep in mind. :)
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