Ars Regendi Simulation Forum

Thank You, and can Universal HealthCare in the long-run actually help my surplus? I know how goverment surplus hurt private sector growth. So, instead I will pay off my debt competley , then just have a balanced budget so it does not hurt private sector. Also, I should in the long-run have more revnue from the economic prospertity. Thank You

Again, in reality, by doing that, you're actually turning negative net savings each fiscal year. Public debt is issued to control short term interest rates in the market, and it's a vehicle for private institutions to save. If you're not running government deficits, but surpluses, you're slowly chocking the life out of your economy. If you, government, circulate 150 billion in spending, and tax 200 billion. How will people be able to pay that? They'll have to spend past savings for that. When that runs out, they will liquidate their assets and turn them over to the government. If the government surplus persists, then eventually - the private sector won't exist, and the government will own everything.
The only way the private sector can grow via the course of a business cycle is via government deficit.

AR doesn't model this according to real life (Clinton surpluses, Australia;s surpluses etc). But it does slow down your economy a bit. And if you're not a net exporter (foreign savings), you'll most definitely run into recession.

What does Militarism do to my economy? I know it triples my military budget, which is already pretty high,so does it help my economy? And if I do this with Universal healthCare will it be super expensive? Or, because of my flat tax it will encouarge economic growth and make it less expensive?

Guys? Again, if I did Universal HealthCare and Militarism together, could i still keep my books balanced? I know about the private sector, but its simple you dont spend more than what you take in! Unless, in a event of national emergency! Look at the roaring twenties, they ran surplus for ten straight years! And lool how good the economy was! And check my state out sometime!

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Watch, I have a trade surplus and a postive newindebtness! And 86% of my people are happy or content. And my economy is doing GREAT... I will run my economy on simple, true godly economic princples! Look at America's past surplus!!!! So, the theory DISPROVEN, defecits hurt the economy than they help espically trade defecits and budget surplus!!! Watch me!!!!

Ars-Regendi is a game, not the real world. The Clinton surplus years plunged the economy in recession. The US has had 6 depressions, and all of them came on the heels of budget surpluses. The keynesian years of fiscal regime ('45 up to the take over of thatcherism, reagonomics, i.e. neoliberalism) kept unemployment around and bellow 4%. When neoliberalism came into power, taxes were increased, gov spending was reduced, industries were destroyed, wages fell, unemployment went up, and the so-called service economy paved the way for abject speculation and financial terrorism and austerity we see today.
Look here:
http://forum.ars-regendi.com/uk-sector-b...23169.html
That is accounting reality. The saving of households and businesses comes from the government deficit - not from the sky. But I can see you're ignoring the graphs I showed you, my arguments, and the vid I provided. So I won't insist on the matter. I just hope, for the sake of you and your country, that your government will turn away from austerity and reduce fiscal drag instead of shrinking the deficit. Here in the EU, the shrinking of deficits have done nothing but to cause economic hardship, unemployment, falling wages, and to fuel racist and xenophobic sentiments.

And if you implement militarism, most likely you will lose your budget surplus.
Here's Prospero, one of my keynesian uber states. http://www.ars-regendi.com/state/129440/detail6.html
Notice the economic stats, safety stats, social stats, free time, life span, debt and the deficit.

Universal Healthcare increases your PE Health spending X3. That is right: It triples it. So if you want to keep the buget balanced on that end... Simply do the appropiate mathematics.

As for Militarism, as I have never implemented such a reform (nor it's opposite, Pacifism) I cannot tell whatever the economic benefits are good or bad. Naturally, it will increase your PE Defense and *maybe* your PE Security... However how much I can not say. Historically however most periods of market expansion and high employment ocurred during wars/post-wars due to the heavy state spending into the military. So probably you will see the spending into PE Defense trickle down into the rest of the economy as well.

Oh, Okay... I get it now, thank you for that information, it was really helpful! Sorry about the in your face thing! I won't worry about budget surplus, now! Thank you...

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I see know the Private Sector can not afford to run defecits like the Fed! http://www.businessinsider.com/how-bill-...omy-2012-9 Very intresting stuff! Thank you again! But one question, the roaring twenties, with the govt surplus, did it hurt it? But, I now know govt defecits help the economy more! Thank You!!!!!!!!!

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Can Universal HeathCare and Flat Tax lower my unempolyment rate of 4%? Help, anyone!

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I did Privatized HeathCare at the start of my state, but now I want Universal HeathCare so can I do it despite my past reform? And will it overpower that reform? Please Help!!!!!

Perhaps, perhaps not. Your unemployed is affected by many things, but it is possible that those two reforms help combat unemployment (also, note that Flat Tax is a long-term reform, contrast and compare with Negative Income Tax which provides short-term benefits).

If I recall correctly, both are mutually exclusive. But you could still nationalize the healthcare system through other reforms, say, Central Planning and/or Anarcho-Syndicalism (I do not recommend you to try either as of now, however... Wait until you are more accostumed to the game's mechanics).

Either way, if you just want to help improve the quality of the healthcare in your nation you can increase PE Health, regardless of whatever reform you have active.

Actually the private sector can run a surplus when the govt is only when there is a trade surplus. And my state is running a huge trade and postive balance. So, comment on my state .

Net exports means foreign savings. But the only way people can have a net surplus o their own national currency, is only if the government is running a deficit. If the government were to run budget surpluses every year, then in every year the net savings of the private sector would be negative. That means people would go throw all their savings they piled up during the course of time. And if the government continued this way (taxing more than it spends), it would destroy the private sector, leaving it without money.
"Government creates fiat by circulating currency in its expenditures, and it destroys it via taxation." Abba Lerner

Look at China. It has a big trade surplus - it has reserves of foreign currency, but the chinese government runs a deficit of yuans. The net savings of household and business don't come from anywhere else - they come from the government taxing less than it spends.