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If I raise my Tech budget to the max, the inflation and GDP starts to raise, why? I cannot find the relation between Tech and Inflation...

Tech spending translates into a lot of high paying jobs for your people, and just general stimulation of the region's economy, which is where the inflation and GDP come from. Someone had a post that showed how their high-income population steadily rose with a steady increase in tech spending. This remains my favorite way to economic growth, along with small reductions in taxing, as within a few weeks or months that increase of spending will have caused a GDP and tax base increase to more than cover the initial cost.

This can most directly be related to real-life Defense Research spending in the US - even though the US is the poster-child of capitalism, one of the largest economic segments is Defense spending, which is of course public-sector spending. This spending, split between 'military' and 'research' spending types, is a major component of the GDP in the US, also resulting in a lot of 'spin off' benefits (ie, subcontractors and service companies, etc).

I wouldn't go as far as saying that increasing research spending will ever 'cover the cost', though with a mix of economic policies (lower taxes, balanced budgets etc) it could certainly be a major push towards a strong economy.

-- George.

Really ? I find that given time,it almost always does in my economies.

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This post approved by Tkobo:Official Rabble Rouser of the United Yahoos
Chuckle TM