Unemployment effects on GDP and demand

[way2co0l]

I wanted to give you guys some observations. According to some reports in ultimate regarding the WW2 starts, it seems the economy is running into some issues meeting demand from skyrocketing GDP.

Ultimately I believe that low unemployment is the problem as it's too easy to drop down to under 3% and even close to 2% for some countries without even really doing anything. Playing a hands off game as Andora in the 14 start and exactly 1 year later America has already doubled its GDP to match what it has in the 36 WW2 start. So basically what it realistically had 21 years later. That kind of rapid growth was seen across almost every country and the demand that would come from that would quickly stress the world economy.

I'm aware that the game has a mechanic in place to increase production for facilities when worldwide production is too low to meet demand, but it doesn't seem to keep pace with GDP growth in these early starts and definitely doesn't match up when it comes to electricity primarily because the power grid techs aren't a factor yet. GDP growth leads to massive increases in consumer goods demand, which leads to the mechanic to increase production at all consumer goods plants, but that in turn drives up the demand for electricity and everything else and the world economy just isn't able to handle that growth.

Personally, I think the underlying problem is unemployment. It's way too easy to reach levels of "full employment" when it actually should be much more difficult to do. I feel like 10% should be the average for a developed nation unless they were actively trying to bring it down through some kind of massive expansion, which should manage to get it down to the 5% and below figures. But short of insane social spending or massive construction or something of the sort, then employment should not be getting as low as it does, especially in undeveloped countries which should struggle to get under 20% unemployment in my opinion.

I would encourage you guys to look into this to see what you can find.

[Balthagor]

Noted
21613

[geminif4ucorsair]

I concur that there is a problem with early arrival of tight Labor (3% warning notice).

In the case of Ottoman Empire, this came in January 1915, at a time when only the following facilities were under construction:
* one x Naval Fabrication facility (@ 85% complete)

* two short-railroad segments (Al Hallal area with one bridge)

* two short Road segments (connecting Constantinople and Istanbul

Only military production is one x heavy artillery and one x medium artillery unit. Since games beginning, only a few Infantry units (maybe six total) and @ six armored car / motorcycle recon units have been built. No major impact should be on manpower, as few infantry units have been built.

Within the prior two weeks, some other facilities were completed, including:

* one x Land Fabrication facility;

* one x Oil Field, and one Timber facility.

* Population.

"The 1914 census list reflected major changes in the territorial boundaries and administrative division of the Ottoman state.[3] The population statistics and Ottoman general election, 1914 were major population sources. 18,520,015 was the population.[4] The grand total for 1914 showed a "net gain" of 1,131,454 from the 1905-06 Ottoman census survey."

Source:
https://en.wikipedia.org/wiki/1914_popu ... man_Empire

With a population of 18.5 million (where less than one-half are ethnic Turkic, one would not think these project above would stretch the Labor market as being tight, to generate a 3% warning.
----------

Thanks for looking into this.