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Econ Growth, Pacifism and Privatised Hlcr

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CaiusFilimonG
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Post: #1
Econ Growth, Pacifism and Privatised Hlcr

Economic growth, Pacifism and Privatized Healthcare:

I'm planning on running a deficit of 250% of GDP with the vast majority of spending in Healthcare and Defense. In every autumn, for three years, I would want to implement these reforms, once the debt reaches such a level, in the following order: 1) Pacifism, 2) Privatized Healthcare and 3) Money Reform II.

I usually reach a GDP of around $80-90 trillion in the year 2016-2020, but mostly without spending a dime on defense, and overspending like mad in everything while cutting some taxes, especially excise taxes. I usually manage to successfully get away with Money Reform II and redress the economy, but I almost always reached a debt level of 300-350% when I decided to get rid of the debt, so soon after I manage to sort out the economy after only a very insignificant, short economic slump, extremists kill me. I usually rack up too many extremists as a % due to the huge debt to GDP ratio.

----- SKIP FORWARD TO:

So, now, here's the actual QUESTION: Would enacting Pacifism after having previously spent HUGE amounts of money on the military kill the economy? I have the same question for 'privatized healthcare'. I'm not talking only about employment, that's rarely an issue for me; I'm talking about the GDP!


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22.07.2014 15:37
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Helsworth
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Post: #2
RE: Econ Growth, Pacifism and Privatised Hlcr

Well, not really sure if PE defense is really tied to exports; but slashing a high PE defense budget will make your GDP drop because government purchases get lowered.
Hate extremists - extremists should emerge because of hyperinflation (chronic excess aggregate demand unmet by output), not because of the size of the national debt. Debt to GDP ratio or Deficit to GDP ratios are arbitrary in nature - and don't tell you anything. Without context, these ratios are less than useless.
Privatized health care will lower bureaucracy and will decrease your health index. You should manually increase PE health after you do the reform.


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This post was last modified: 22.07.2014 16:07 by Helsworth.

22.07.2014 16:06
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CaiusFilimonG
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Post: #3
RE: Econ Growth, Pacifism and Privatised Hlcr

Helsworth Wrote:
Well, not really sure if PE defense is really tied to exports; but slashing a high PE defense budget will make your GDP drop because government purchases get lowered.
Hate extremists - extremists should emerge because of hyperinflation (chronic excess aggregate demand unmet by output), not because of the size of the national debt. Debt to GDP ratio or Deficit to GDP ratios are arbitrary in nature - and don't tell you anything. Without context, these ratios are less than useless.
Privatized health care will lower bureaucracy and will decrease your health index. You should manually increase PE health after you do the reform.


I once had impressively low inflation, with an extremely strong currency (1.50 almost constantly), almost perfect balance of trade oscillating between deficits and surpluses of $50bil, and 300 and something % GDP to debt ratio. Extremists kept multiplying like parasites.

I also enacted pacifism which barely dented my economy, while cutting a huge expense from my budget. Same with privatized healthcare.

I believe it's the perfect strategy to overspend in these two sectors, to then privatize/eliminate the spending with these two reforms while only losing a very tiny bit of GDP, then using money reform, leaving you with greatly reduced expenses, only a slightly reduced economy, and no debt.

Have you actually tried Pacifism?

Likewise, have you successfully managed Money Reform II? I managed to get over it with a strong currency.


Likewise, thank you for your timely response.

Nonetheless, your reply did not really eliminate my doubts. Could you please be slightly more specific?


The most OP books: http://serbanvcenache.blogspot.ro/2014/0...-live.html
22.07.2014 16:45
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Helsworth
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Post: #4
RE: Econ Growth, Pacifism and Privatised Hlcr

I implement pacifism in pretty much all of my states.
It's not a sound plan to crank up your budget, then implement pacifism and privatized health care. The index losses are going to be enormous. Privatize first! Then spend.
Instead of spending on Defence, better to focus on Eduction and PE Administration - try to see if you can manage to achieve a 1000% infrastructure index. My highest was above 300%.
The key with MR2 is to lower your fiscal deficit before you implement it. Cause if you're running a high deficit - correlated with a high interest rate (which MR2 triggers) - you're gonna pile up new debt fast and interest payments will be higher.


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22.07.2014 16:57
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CaiusFilimonG
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Post: #5
RE: Econ Growth, Pacifism and Privatised Hlcr

I kept the currency as strong as that while having a 1% interest rate before enforcing MR II.

Regardless, was I only lucky when I didn't experience any serious economic losses when I enforced the reforms? It would seem you give me the RL answers, while I'm looking to maximize growth within the game.

I believe that, in this game, huge government spending followed by privatization is the way to go for huge economic growth followed by a huge reduction in deficit spending from the two reforms, and then eliminating debt to get rid of the rest of the deficit caused by interest payments, essentially turning to a surplus budget.

I indeed first wiped out my fiscal deficit by enforcing these two reforms, but I still had way too much spending in the other sectors.


The most OP books: http://serbanvcenache.blogspot.ro/2014/0...-live.html
22.07.2014 17:11
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Helsworth
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Post: #6
RE: Econ Growth, Pacifism and Privatised Hlcr

CaiusFilimonG Wrote:
I kept the currency as strong as that while having a 1% interest rate before enforcing MR II.

Regardless, was I only lucky when I didn't experience any serious economic losses when I enforced the reforms? It would seem you give me the RL answers, while I'm looking to maximize growth within the game.

I believe that, in this game, huge government spending followed by privatization is the way to go for huge economic growth followed by a huge reduction in deficit spending from the two reforms, and then eliminating debt to get rid of the rest of the deficit caused by interest payments, essentially turning to a surplus budget.

I indeed first wiped out my fiscal deficit by enforcing these two reforms, but I still had way too much spending in the other sectors.

The currency value doesn't matter in Ars-Regendi vis-a-vis extremists - or happiness for that matter. My point on hyperinflation was for real life - so far I've yet to see rebellions and extremists planning the downfall of the government and president because the country's public debt or fiscal deficit was too high in and of themselves. So long as the indexes are looking good, the virtual populace in ars-regendi hating their regent for the high debt to GDP ratio is simply arbitrary.

Ok, I though you wanted to keep the indexes high. If you don't care about them - simply the economic figures - then sure. Maximize debt, then slash, burn, privatize - and obtain your budget surplus afterwards.


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22.07.2014 17:17
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CaiusFilimonG
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Post: #7
RE: Econ Growth, Pacifism and Privatised Hlcr

Helsworth Wrote:

CaiusFilimonG Wrote:
I kept the currency as strong as that while having a 1% interest rate before enforcing MR II.

Regardless, was I only lucky when I didn't experience any serious economic losses when I enforced the reforms? It would seem you give me the RL answers, while I'm looking to maximize growth within the game.

I believe that, in this game, huge government spending followed by privatization is the way to go for huge economic growth followed by a huge reduction in deficit spending from the two reforms, and then eliminating debt to get rid of the rest of the deficit caused by interest payments, essentially turning to a surplus budget.

I indeed first wiped out my fiscal deficit by enforcing these two reforms, but I still had way too much spending in the other sectors.

The currency value doesn't matter in Ars-Regendi vis-a-vis extremists - or happiness for that matter. My point on hyperinflation was for real life - so far I've yet to see rebellions and extremists planning the downfall of the government and president because the country's public debt or fiscal deficit was too high in and of themselves. So long as the indexes are looking good, the virtual populace in ars-regendi hating their regent for the high debt to GDP ratio is simply arbitrary.

Ok, I though you wanted to keep the indexes high. If you don't care about them - simply the economic figures - then sure. Maximize debt, then slash, burn, privatize - and obtain your budget surplus afterwards.


So is that very likely to kill my Regent? Even though I'm trying for an 'extreme' type of economy (in the long term too), I don't really want to be thrown out of office or killed either Tongue

Again, thank you for your timely replies.


The most OP books: http://serbanvcenache.blogspot.ro/2014/0...-live.html
22.07.2014 17:26
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