So you want to be an economic powerhouse?This post is a little late, and I apologize. So you want to be an economic powerhouse? Some of you have played with me and have been baffled by my super economy. So here I share all my secrets, all my stupid ways of making Andorra or Vatican city or DRC or Western Sahara #5 in the world in production.
Tools and StatisticsTo put it simply you have a few tools to help you build up your economic strength, as well understanding the statistics given to you to help you know what specifically to do. It's all very easy to understand don't worry.
That tab with a dollar sign on itSo you just started the game and you are ready to become the economic mogul. First you maybe look at military because you want to blow shit up, but eventually you get to the economics tab to see what's up there. At face value you have four sub-tabs in there, Economic Model, Economic Health, Budget, and Resources.
Economic ModelTells you the proportion of your economy that's privately owned or state-owned. Most people like to do full private ownership because it's less complicated and cheaper for growth. The proportion isn't based on each market, so say if you make a vehicles market state controlled but have no production in it, it will not affect that slider. Changing to state controlled on the largest market, health and care, will definitely change it drastically. What does it mean? Not much. Better to set to all private when starting out. Making a state-controlled nation is a complicated and taxing endeavor.
Economic HealthA sloppy statistic to see how well your economy is growing. Really high health means your economy is still growing, low health means not as much or not at all. All in all, your economy is almost always growing. You have to try to put it in the shit tank. It however considers your country's human development index, interest rate, and infrastructure level. Now let's hit the More button, because more is better!
You see in the more tab, GDP, GDP per capita, Unemployment Rate, Poverty Levels, Inflation, and Interest rate. The main thing here is your income tax rate, your main money earner (usually) and the interest rate. There's nothing entirely special about the income tax rate as it doesn't affect your economy too much in the short term (Anywhere from 10-50 years), but it does affect your approval rate. Obviously really low taxes will give you high approval and high taxes will give you shitty approval. This can be countered by having high propaganda, but it will hurt in the beginning. Definitely don't raise taxes before an election and decreasing taxes can give you the boost you need to win the next election. In the long term the consequences aren't so bad. You just don't grow -as much-, and your poverty percentage and gdp per capita don't go up -as much-.
What the fuck is that interest rate thing then? Interest level is setting your government's target interest rate. Or the general level at which borrowers pay back on a loaned money or earn from savings. It may seem broken when you first use it, but it's a very powerful tool for your economy. You may think it doesn't do anything because when you change it to 100% and 0% over and over nothing happens. That's because when you change it, it takes 1-2 months to actually take effect. By default it's always at 2%. The game makes use of a very simplified version of a real economic concept called the
Phillips curve. Basically the higher your interest rate, the higher your interest rate, the more depreciated your currency is, therefore more unemployment, then the opposite the lower your interest rate, the more inflated your currency is, therefore less unemployment. (
^ I ->
^ U ;
v I ->
v U). So when you have more unemployment your economy won't grow as much or not at all, but when you have less unemployment then you'll grow much faster. However when you have high inflation, your budget expenses are higher, and when you have lower inflation you have lower expenses.
So that covers the tools you have in the tab, but what about the statistics? Ignore GDP, it's not important. It's a big fucking number that represents total production in your nation. GDP per capita is where it's at, because it's a proportion of your total production to your population. More production per person means you can get more money out of them. Generally you want to increase this, but sometimes just having super big populations is fine too, whatever. When all nations are in Autarky mode (where every nation in the world meets their needs of production for the entire population), depending on your government type your GDP per capita is going to be anywhere from 5k-20k, generally... So before Autarky happens it's possible for your nation to out produce everyone else and fill their resource buckets with your own. It is however not an indication of how much your average citizen makes. A good way to increase your GDP per capita is to drive up consumption and production levels in your country. Which we'll discuss later when we get to Resources.
Unemployment levels generally just is another statistic that tells you how much your country will grow or not grow. Target is 5%, but you can get as low as 2%. Obviously high unemployment will trigger less growth and low unemployment will trigger more growth. It also affects your poverty levels, low unemployment will help lower them. This statistic is almost entirely government by you interest level. Keeping your interest at 0-10% is fine, but anywhere above will generate dangerous levels of unemployment.
Poverty line basically smacks down any belief that you might be an amazing fucking country. A very high poverty level means you have very low HDI levels and need to put them up. When you have less people in poverty then your growth is much higher, simple as that. We'll discuss how to raise HDI later. High GDP per capita helps with poverty levels but it won't change it fast enough.
Inflation has indicators hat show the range is like -20% - 20%, but the game might start your nation at -50% or 500% inflation. Notably in very shitty countries, so don't expect it that low in your developed nations.
The game will naturally lower or raise your inflation levels without any of your doing to a range between 0%-10%. The inflation rate will never go outside that range for whatever reason. Pretty much all inflation will do is make things in your nation more expensive to have like budget expenses and military upkeep. A nation with 3% inflation will have cheaper expenses than a nation with 10%. To lower your inflation, simply adjust your interest levels higher, but this will increase unemployment. If you feel unemployment is low and you have low inflation, then lower it to 0%. If you have full budget and are at 10% and still make a budget surplus, just lower it to 0% so you can get the growth bonus. It doesn't matter if you're that rich.
So I hope that covers everything about the economic health tab. Post any questions you may have about it.
The Big Budget TabAt face value you have four statistics read out to you, Income, Expenses, Balance, and Available. Income shows the total amount of money your country makes a year from taxes, expenses shows the total amount of expenses from military upkeep, treaties, security upkeep, corruption, interest payments, and budget upkeep you have. Your balance is the deficit or surplus your nation will have annually, determined by Income - Expenses. Obviously you generate a better balance when you have low expenses and high income. You get more income from growth and you get less expenses from less upkeep and less investment. Your balance is the total amount of debts or money your country has available. Your balance will increase or decrease depending on your annual balance. A country will eco-fail when this is too high. The higher your debt, the more interest payment you have to pay, and when your interest payments exceed total income, then you have economic failure.
The big more tab! This one's huge! Basically it just goes more in depth about the income and expenses of your country. The income bar is short, and you have only four income options, personal income tax, resource income from taxes, tourism, and diplomacy. Personal income tax is the most direct and quick way to gather money for your nation. You can get more money from this by raising your income taxes or growing your people's average income with higher HDI/gdp per capita/employment. You can get more trade income from increasing production of your resources (again we can cover more of this later in the resource section) or raising your taxes on your resources. Tourism is a funny income, it's free money, quite literally free money. To increase this, just slide your tourism slider in your expenses section all the way up. I recommend always cranking it because you will always get more income from tourism than you spend in it, ALWAYS (except when you invade everyone, nuke people, and are constantly changing your government, but you know, trivial things.) Diplomacy income is when other countries give you economic aid. This can come from direct economic aid, where a country sends 10% of its trade income to you, or when you join a noble cause and you're obviously the shitty end of the stick.