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Basic Income causing Shadow Economy and Unhappiness

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re.v
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Basic Income causing Shadow Economy and Unhappiness

I tried to create a post-work economy in SBTL3 by introducing UBI. Some of the results were unexpected and I was wondering if some of the forum members might have some insight in to what caused them.

I started by investing in education and choosing pro-automation options. I also did the usual growth stimulating changes (raised MS, lowered the interest rate acquisition and capital taxes, founded education and infrastructure, introduced NIT etc.). Then I introduced BI through the task triggered by the Negative Income Tax. At first the results were as expected wages increased, savings went up, working hours down, unemployment increased (voluntary unemployment I assume). I stopped increasing the BI at half the cost of living because unemployment was raising to fast but all the effect kept happening.

I assume at this point the because of the increased bargaining power of labor the economy had entered a virtuous cycle. Wages were more than 8x the cost of living so people were saving and retiring early adding to the increasing number of voluntary unemployed and decreasing the pool of labor even more forcing employers to increase wages and cut hours even more perpetuating the cycle. Automation was also rising fast at this stage with no investments on my part (I assume due to the pressure put on businesses by the shortage of labor combine with cheap money for investments due to the highs saving, low interest rate and low taxes on capital).

However once Net income went over 10X cost of living weird thing started happening. Happiness went from being >90 to rapidly decreasing (despite excellent values in all indices) and shadow economy increased overnight to insane amounts (despite a maximum increase in safety spending each quarter and cuts to excise taxes). Despite all my efforts I couldn't reverse the dramatic drop in happiness so I lost the fallowing election election.

I ended the game after 96 quarters with net income at 56X cost of living, 64% unemployment, a 142% savings rate and a 1525 automation value.

What could cause such a sudden shift in happiness? Everything seemed to work great from my perspective? And are those extreme values in the economic indicators I mentioned above normal? They seem highly implausible.

This post was last modified: 19.07.2016 10:19 by re.v.

18.07.2016 20:09
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Helsworth
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RE: Basic Income causing Shadow Economy and Unhappiness

I never got the UBI that big via the NIT. I tried the Basic Income reform several times, and after each time, happiness went down, consumption went down, GDP growth went down. So I assume it's about big nr changes in the matrix producing weird results. Kudos to you for achieving such great income levels before the state went to the crapper. That ratio is insane!Daumenhoch


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19.07.2016 07:53
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re.v
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RE: Basic Income causing Shadow Economy and Unhappiness

I definitely didn't expect to end up with that ratio. It seems kind of pointless to aim for this kind of results if they bug out the game and destroy my state though.

I could have gotten the UBI in line with the cost of living by the time they assassinated me but I got scared by the dramatic changes in the economic indicators so I decided to freeze the growth for a while hoping that the game will stabilize (it didn't).

19.07.2016 10:29
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