Ars Regendi Simulation Forum

Full Version: Developing nation
You're currently viewing a stripped down version of our content. View the full version with proper formatting.

Rising Phoenix

Spending on Justice helps decrease the Shadow economy. I know that because in my state I have only made small increases of PE Justice for a while (alongside a few other sectors, like environment), and the Shadow Economy decreased little by litte.

Problem is, without a good legal economy, you are still going to have a sizeable black market (specially if prices are too high).

I suggest you also spend on PE Others when increase PE Administration; the relationship is not clear but the best infraestructure increases happen when you raise both.

Rising Phoenix Wrote:
Spending on Justice helps decrease the Shadow economy. I know that because in my state I have only made small increases of PE Justice for a while (alongside a few other sectors, like environment), and the Shadow Economy decreased little by litte.

Compare your Nova Berlin with my Tianzaar. I spend on “PE justice” five times less than you, but my “Shadow economy” is slightly smaller. Spending on “PE justice” has insignificant effect on “Shadow economy”.

Lord Alexander Wrote:

Rising Phoenix Wrote:
Spending on Justice helps decrease the Shadow economy. I know that because in my state I have only made small increases of PE Justice for a while (alongside a few other sectors, like environment), and the Shadow Economy decreased little by litte.

Compare your Nova Berlin with my Tianzaar. I spend on “PE justice” five times less than you, but my “Shadow economy” is slightly smaller. Spending on “PE justice” has insignificant effect on “Shadow economy”.

PE justice should be increased only via task options.

Rising Phoenix

Lord Alexander Wrote:

Rising Phoenix Wrote:
Spending on Justice helps decrease the Shadow economy. I know that because in my state I have only made small increases of PE Justice for a while (alongside a few other sectors, like environment), and the Shadow Economy decreased little by litte.

Compare your Nova Berlin with my Tianzaar. I spend on “PE justice” five times less than you, but my “Shadow economy” is slightly smaller. Spending on “PE justice” has insignificant effect on “Shadow economy”.

Shadow economy = black market.

Thereby, if I have more policemen and inspectors on the street fighting crime, it makes sense that they will be able they decrease the amount of black marketters on the street, does not it? Rolleyes

The problem here is taxation. Shadow economy is influenced by a number of factors. Your taxation is based around adquicision taxes mostly, while mine's centers around Excises. This means that you take more from your people, but your goods cost less. On the other hand, I take less from my people's income, but my goods costs more. Ergo the lower classes are more inclined to purchase illegal goods from shady bussinesses.

Illegal employment and unregistered salaries are part of “Shadow economy” too, thus “Acquisition taxes” should increase it as well. In any case your spending on “PE justice” in Nova Berlin is already enormous for GDR template and it cannot decrease “Shadow economy” very noticeably.

Even if you are right that “Excise taxes” affect “Shadow economy” so badly, it only means that you can decrease “Shadow economy” without increasing your deficit by simple synchronous decrease of “Excise taxes” and of the spending on “PE justice”. Spending on “PE justice” is nearly useless for fighting “Shadow economy” in poor templates.

Rising Phoenix

Lord Alexander Wrote:
Illegal employment and unregistered salaries are part of “Shadow economy” too, thus “Acquisition taxes” should increase it as well. In any case your spending on “PE justice” in Nova Berlin is already enormous for GDR template and it cannot decrease “Shadow economy” very noticeably.

You are correct on this point.

Lord Alexander Wrote:
Even if you are right that “Excise taxes” affect “Shadow economy” so badly, it only means that you can decrease “Shadow economy” without increasing your deficit by simple synchronous decrease of “Excise taxes” and of the spending on “PE justice”. Spending on “PE justice” is nearly useless for fighting “Shadow economy” in poor templates.

ARS Regendi simulates an economy in the most realistic way possible, I am right? If so, it only makes sense that if legal stores only sell expensive goods and illegal traders sell cheap goods, people will buy cheap goods. Just like in the old days of Communism (althrough that was more due to a lack of variety than price in itself).

Initially, when I made my large increases in PE Justice by +10%, along with most sectors, then it yielded sizeable results. My past experiments to leave PE Justice alone did not reduce corruption as much. That is why I increase it if I am increasing other sectors of the economy (but right now I am trying to decrease them via tasks/reforms).

Lord Alexander Wrote:
Illegal employment and unregistered salaries are part of “Shadow economy” too, thus “Acquisition taxes” should increase it as well. In any case your spending on “PE justice” in Nova Berlin is already enormous for GDR template and it cannot decrease “Shadow economy” very noticeably.

Even if you are right that “Excise taxes” affect “Shadow economy” so badly, it only means that you can decrease “Shadow economy” without increasing your deficit by simple synchronous decrease of “Excise taxes” and of the spending on “PE justice”. Spending on “PE justice” is nearly useless for fighting “Shadow economy” in poor templates.

Alexander is correct. In Zane my excise tax is 11.83% while the average state is 16,37%. The shadow economy in Zane is 36% while the avergage state is 48%. In Zane the PE justie is 14 bill while the average state is 11 bill. All my increases are task options related and indexed with inflation.

Rising Phoenix

Helsworth Wrote:
Alexander is correct. In Zane my excise tax is 11.83% while the average state is 16,37%. The shadow economy in Zane is 36% while the avergage state is 48%. In Zane the PE justie is 14 bill while the average state is 11 bill. All my increases are task options related and indexed with inflation.

But I am also correct. Excise taxes contribute to increasing the shadow economy.

Guess I will have to try raising Adquicision, then.

Rising Phoenix Wrote:

Helsworth Wrote:
Alexander is correct. In Zane my excise tax is 11.83% while the average state is 16,37%. The shadow economy in Zane is 36% while the avergage state is 48%. In Zane the PE justie is 14 bill while the average state is 11 bill. All my increases are task options related and indexed with inflation.

But I am also correct. Excise taxes contribute to increasing the shadow economy.

Guess I will have to try raising Adquicision, then.

Just push the liberalism reform.

Rising Phoenix

Helsworth Wrote:

Rising Phoenix Wrote:

Helsworth Wrote:
Alexander is correct. In Zane my excise tax is 11.83% while the average state is 16,37%. The shadow economy in Zane is 36% while the avergage state is 48%. In Zane the PE justie is 14 bill while the average state is 11 bill. All my increases are task options related and indexed with inflation.

But I am also correct. Excise taxes contribute to increasing the shadow economy.

Guess I will have to try raising Adquicision, then.

Just push the liberalism reform.

Mmh... You are correct. I already privatized much stuff, deregulated a litte... I guess it is best if I undergo the massive spending cut now.

(By the way how about we move this conversation to the "Eastern Germany" thread?)

Pages: 1 2 3
Reference URL's