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BI Implosion

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ShadowsEdge
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Post: #1
BI Implosion

In my state of Draxin in world Durbin my country has had a figurative heart attack. 2 quarters after implementing BI my unemployment grew from 14% to 33%. My GDP dropped from 1,100 to just over 200. My popularity plummeted and extremists are taking up half of my population. Crimes, both of them, and the Shadow economy are maxed out in the red. My debt isn't that bad, manageable even, and the quarter after BI was fine too. What happened? Is BI that bad for a Developing country? How can I quickly reverse the effects?

29.05.2014 23:37
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MrProper
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Hammerfest
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Post: #2
RE: BI Implosion

Your popularity is at -9. I'm not sure if you will be even able to survive the next tick.

However, the problem is easy to spot:
Net income 93 € per month (+ 563.14 from Basic Income)
Living costs 752 € per month

Working in your state no longer makes any sense at all. However, it's not completely your fault. Developing countries templates are less stable and more error-prone. Nevertheless, BI is something a developing just can not afford. It's even not that easy to implement with industrial powers or superpower states.


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30.05.2014 00:07
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Helsworth
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Post: #3
RE: BI Implosion

Even in the stronger template states, the basic income makes your population hate you more.


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This post was last modified: 30.05.2014 08:33 by Helsworth.

30.05.2014 08:30
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Malone
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Post: #4
RE: BI Implosion

nono that can't be said generally Nono


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30.05.2014 09:14
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Helsworth
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Post: #5
RE: BI Implosion

Malone Wrote:
nono that can't be said generally Nono

Of course, I might be wrong. But that was my experience with the Basic Income reform - twice I implemented it; and in both cases consumption got depressed and my popularity dropped. Despite having the fiscal setting to favor the reform.


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30.05.2014 09:42
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Madagascar
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Post: #6
RE: BI Implosion

I haven't implemented the actually BI reform, but I have implemented the NIT reform followed by the task option to implement a basic income. Actually did so with my own developing country in Durban.

The issue I found was not an immediate popularity drop - a non-issue when implemented in my states in this manner - but rather a drop down the road. People REALLY don't like it when you reduce their basic income, so it becomes almost untouchable in your budget. You can increase it, but if you ever try to decrease it...

As your population increases, health goes up, and fewer people starve to death, you end up spending more and more on basic income. It is extremely easy to allow the basic income to become the biggest part of your budget and that's just with a modest income, say 50-100 € pcm. With almost 600 € pcm using a template with a relatively low net income, you're basically rolling the dice that nothing ever happens to your state to decrease revenue or increase cost of living.

02.06.2014 20:10
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