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Counterbalancing Capital Flight from Reforms

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Madagascar
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Counterbalancing Capital Flight from Reforms

I thus far have implemented Administrative Reform, Laicism, and Money Reform I. I intend to implement Negative Income Tax next quarter and later most/all of: Universal Healthcare, Pacifism, Employment Reform, Bank Reform I, Egalitarian Transhumanism, Anarcho-Syndicalism, and Free Land. I will probably expend the action points to jump ahead and get Anarcho-Syndicalism or Egalitarian Transhumanism early.

Almost all of these should cause my gross investment and capital to decrease. What can I do in terms of reforms (and their timing), the budget, special actions, etc. to help offset these consequences? What about enacting the reforms in a certain order?

30.03.2014 03:15
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Helsworth
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Post: #2
RE: Counterbalancing Capital Flight from Reforms

Madagascar Wrote:
I thus far have implemented Administrative Reform, Laicism, and Money Reform I. I intend to implement Negative Income Tax next quarter and later most/all of: Universal Healthcare, Pacifism, Employment Reform, Bank Reform I, Egalitarian Transhumanism, Anarcho-Syndicalism, and Free Land. I will probably expend the action points to jump ahead and get Anarcho-Syndicalism or Egalitarian Transhumanism early.

Almost all of these should cause my gross investment and capital to decrease. What can I do in terms of reforms (and their timing), the budget, special actions, etc. to help offset these consequences? What about enacting the reforms in a certain order?

Anarchosyn, Free land and BR I and ER are going to decrease your capital. That's a built-in effect, which you cannot change.
If you plan on doing all those things, you might consider doing just planned economy then anarchosyn.


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30.03.2014 07:19
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Madagascar
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Post: #3
RE: Counterbalancing Capital Flight from Reforms

I'm aiming for something on the social democrat/democratic socialist border so I don't want to go as far as Protectionism or Planned Economy. Aiming to nationalize natural resources but leave most manufacturing and services alone (banking being an exception). It's been working so far - my GDP is 9.4% above the average while gross investment and the stock index are almost at the average, but I also haven't undertaken big leftist reforms yet.

So I know I cannot negate the automatic impacts on things like capital and investment but how can I help mitigate them? Choosing liberal task options, dropping taxes (especially on capital gains), controlling inflation (which thus far has not been a problem)? Anything else? Will some of these reforms have less negative economic ramifications if I enact them sooner, to give time for the economy to recover, or later, once I'm further along in the transition?

30.03.2014 19:51
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Helsworth
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Post: #4
RE: Counterbalancing Capital Flight from Reforms

These decisions you are aiming for won't cause so much harm if you implement them early on; unlike some other ones. Yes, you should choose leftist task options. As for fiscal policy; try to run mild budget deficits before you're implementing stuff like Bank Reform I and Employment Reform; since they will impact gross investment and capital.


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30.03.2014 20:05
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Kickass Q.
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Post: #5
RE: Counterbalancing Capital Flight from Reforms

I had some success mixing planned economy and anarcho-syndicalism along with all those reforms (except free land) you mentioned, so I would also suggest giving it a shot. If you do decide to implement planned economy I would recommend against employment reform (maybe?). I found planned economy did a far superior job of completing eliminating unemployment than employment reform (employment reform doesn't eliminate unemployment, just reduces it a lot. Over time you will still see increases in unemployment), but then I had both operating so maybe that's why. If I'm right and that's true, you don't want to do anything needless to reduce investment or incite capital flight since combining planned economy with anarcho-syndicalism does both to an extreme degree and employment reform may be redundant in that situation. Give er a shot and post how it pans out!

30.03.2014 23:29
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Madagascar
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Post: #6
RE: Counterbalancing Capital Flight from Reforms

@Helsworth Should I be implementing leftist (socialist) task options or liberal task options? I was figuring I would tend towards the latter so long as it was a moderate choice, at least until I started seeing unfavorable movement in things like equality of opportunity, happiness, GINI, etc.
And thanks for the tip on the deficit. I've been building up a surplus I'll need to lose.

@Kickass Q. I believe unemployment ticks back up with Employment Reform by itself. Regardless, I'm playing Iran so I think relatively high unemployment is inevitable for me. Negative Income Tax should mitigate some of its consequences.

I decided to forego modifying my budget in favor of NIT this quarter. I've got 12 AP and can likely reach 4 influence soon, so Anarcho-Syndicalism is not far off. Should have results in a dozen quarters or less.

This post was last modified: 01.04.2014 01:56 by Madagascar.

01.04.2014 01:54
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Helsworth
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Post: #7
RE: Counterbalancing Capital Flight from Reforms

Yes; it's better to choose moderate task options instead of radical ones before you implement those reforms.
Also, since you're playing the Iran template; unemployment will be there permanently - especially if you achieve high economic growth along the way. For some reason, in this game, economic growth and the rise in unemployment are more or less directly connected - which is strange, in my opinion. Anyways, if you want to do away with it, you'll want to have Planned Economy before Anarchosyndicalism.


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01.04.2014 08:23
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