I need help about decreasing income and gdp/c

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Justifier
Warrant Officer
Posts: 32
Joined: Oct 14 2005

I need help about decreasing income and gdp/c

Post by Justifier »

Before the start I must say that I read a lot in forum for these problems but I am totaly confused in the end! So I need clear explanations.Also there are some changes after patches I think.( I am using the 4th (the last) one now ).You can direct me to the good topics for my problems if you want.

1) I am playing as Serbia in Europe scenario( goverment:dictatorship )
And after 3 months my economy looks fine enough.I have a huge blank between my income and expense (-25.66 million per day) but I earn almost 35 million from trade in a day.However, I want to decrease the loses in my budget.There are two main source of income as I know. Tax and domestic sales.Here is my problem.They are always decreasing. My tax is 46.5% and I earn 21.09 million in a day but after one day it becomes 21.08.Then 21.06 21.05 21.04 21.03 ... It is same in domestic sales.Markups are below the 60%(mostly 40 ). Now what must I do?

2) In the same game my gdp/c is decreasing slowly as well as my income and it is very low ( 1.981 )I want to increase it but HOW ? ( My inflation is -2.3 but it is closing to 0 and +numbers every day and my unemployment is 14.4 and it is decreasing fast.( 14.8 14.6 14.4 ...) Also I am spending good money for social services( DAR is 25% and getting higher) and they are below 50% mostly. )

I believe you can help me.
Thanks.
Il Duce
Brigadier Gen.
Posts: 577
Joined: Aug 10 2005
Location: Venice - the Doge's palace on the Pacific.

Post by Il Duce »

hmmmm... big picture stuff. You have basically described the entire question of regional admin in a nutshell. And you are likely to get a zillion different answers. Here's mine.

I am assuming that you are in the mood to replay from your savegame to experiment a bit.

Question - do you really have negative inflation? I have seen it appear briefly in a couple of situations, but it would be unusual.

Typically, when domestic sales income is decreasing it is because
1) costs are rising [typically due to inflation or inefficiencies], or
2) because demand is decreasing - that is you are selling less today than yesterday - either because population is decreasing or because prices are too high. There are no hard and fast rules for Domestic Markup - like any price, you can get what the market will bear.
3) efficiency investments are out of control.

Remember that SR2010 econ is fuzzy math and does not necessarily follow the rules of real world econ - don't worry, be happy.

If you are relying heavily on export trade AND you have large investment settings on your exported commodities, you will find that your investment expenses are probably the cause of your losses - efficiency investment is tricky, as the more you produce the more you invest. Sometimes the best way to detect this is to set the offending commodity down to 98% of demand and stop selling it entirely [temporarily]. You may find that your savings more than offset your loss of revenues. If this test proves out, start working your investment slider down - being careful to adjust your markups as well to maintain a constant domestic price. Once investment is low or zero, check to see if your production costs are competitive for export. If not, start disabling capacity to get it to about 110-115% of demand, and move on.

At this point, consider that commodity 'stable' and begin to examine other commodities in the same way. [I know that this tactic sounds counter-intuitive, but try it anyway. You may want to try other paths to these objectives, but sometimes a bit of shock treatment is the fastest way to get there.]

Be aware that your withdrawal from the market 'may' have a significant effect on the balance of trade throught the regions of your map. This may be good or bad. Check to see if your existing allies need your help with commodity subsidies - OR - use your surpluses to leverage alliances [or force hostilities] in the game. [Maybe that's just me, I don't think other people play this way much.]

Likewise, now that you are not dumping money into investment outflows, see if you have cash surpluses that can be used for research and social services. You might also want to reduce taxes. It really depends on your situational needs and strategic agenda - lowering taxes and raising social services will dramatically increase immigration - not always a good thing, but not always bad. Paying off bonds is also a good thing - you did lock your treasury minister out of bond purchases didn't you?

There are some regions which, once you have stabilized demand and balanced production capacities to meet domestic needs as described above, will operate just fine with minimal export revenues - even though they have boundless resources and could supply the world.

I would also strongly recommend that you disable all ministerial intervention in commerce and micromanage it. If you follow what I've mentioned here, you really won't have to do much after you are stable - you can just monitor domestic sales, production costs, and demand trends. All you are interested in is NET revenues, the difference between DomSales and ProdCosts.

If you initially require WM import purchases I would still recommend micromanaging that activity - keep purchases small, but try to accumulate enough surplus that you can miss a few days of purchases without running out. If you have chosen a region that can never achieve self sufficiency - start over and pick a region that can, or get someone else to give you advice.

OTHER FACTORS...

are you in a period of major military buildup? If so, your diminshing revenues are your military maint costs. Reclaim obsolete units. Build down as much as you build up, and recycle your soldiers. When you have a choice between two relatively similar unit types, pick the ones with the least personnel requirements. Most of the units that you start with will be painfully fat with soldiers. Build smart. Replace badly positioned military bases with well positioned supply depots and airstrips. Be creative.

Try this stuff and post a response - other than this, given your description, I can't guess too much more.
Colorless green ideas sleep furiously [but otherwise, they do not worry and are happy].
Justifier
Warrant Officer
Posts: 32
Joined: Oct 14 2005

Post by Justifier »

Thank you for your help.Sorry not to answer before but I had a serious problem with my pc last 4 days.

Well, I find out that my efficiency was low.I have not cared about it for a while and they were about 50%.I spent much money day by day and they began to increase.After 3 weeks I didn't earn much money from domestic sales but my income from trade increased.

I didn't understand gdp/c eighter.It is decreasing day by day.Is it about tax amounts?I will try to decrease tax.Will it help to increase my gdp/c?
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