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Economy, Trade,Budget

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CAR12345
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Post: #1
Economy, Trade,Budget

KopfkratzRolleyes My state:http://www.ars-regendi.com/rid83117/state/144310 is doiing pretty good. I have a nice trade surplus. And a nice budget surplus. But, Im thinking about have flat income tax reform, increasing tarrif by MAX, increasing money supply by MAX, and lowering excise taxes and aqquistion taxes by a reasonable amount to increase economic growth even more. But, doing all that can I keep my budget surplus with the mutpilyer affect?

08.07.2013 15:21
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Helsworth
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Post: #2
RE: Economy, Trade,Budget

CAR12345 Wrote:
KopfkratzRolleyes My state:http://www.ars-regendi.com/rid83117/state/144310 is doiing pretty good. I have a nice trde surplus. And a nice budget surplus. But, Im thinking about have flat income tax reform, increasing tarrif by MAX, increasing money supply by MAX, and lowering excise taxes and aqquistion taxes by a reasonable amount to increase economic growth even more. But, doing all that can I keep my budget surplus with the mutpilyer affect?


In reality, you couldn't do that without a budget deficit. The budget deficit equals the net savings of the private sector in a given year. All the transactions inside the private sector net to 0. Every surplus has a corresponding deficit, every credit a debit, every liability an asset, every income a payment. The only way the economy can grow during the course of the business cycle is via vertical transaction - i.e. government deficit.
Look here:


In Ars-Regendi though, so long as your economy grows faster than your accumulated debt, you have nothing to worry about. When the debt to GDP ratio hits 300%, that causes your regent to become highly unpopular, regardless of the awesome economic and social stats you may achieve. So long as you avoid such a high figure, you should be fine. Don't be afraid to experiment.


https://www.patreon.com/SerbanVCEnache

This post was last modified: 08.07.2013 15:33 by Helsworth.

08.07.2013 15:32
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CAR12345
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Post: #3
RE: Economy, Trade,Budget

Thank you for that helpful information.Applaus One more question, how do you get classified as a superpower? Noplan And how do you think my state is doing?

08.07.2013 16:04
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Helsworth
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Post: #4
RE: Economy, Trade,Budget

I and Sheep replied to that in this thread http://forum.ars-regendi.com/noob-questi...04-32.html

Helsworth:

Quote:
Are you referring to the state's description in the main tab? If you're playing a classic state - you won't get to see such classifications: superpower, resource power, fundamentalist, etc. Those categories apply to the world states. The classic states enjoy only the political-economic classifications. (progressive neoliberal, conservative, socialistic, party-democracy, grassroots etc.)


Sheep:

Quote:
Your classic USA state is a superpower by default. That's nothing you can earn, improve or ruin, USA states always will be superpowers. So "superpower" in the world mode means the same as "USA" in the classic mode.


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08.07.2013 16:38
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CAR12345
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Post: #5
RE: Economy, Trade,Budget

Noplan How, do you lower the GNI or income equality to like almost zero with expolisve economic growth.

08.07.2013 17:12
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Rising Phoenix
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Post: #6
RE: Economy, Trade,Budget

CAR12345 Wrote:
Noplan How, do you lower the GNI or income equality to like almost zero with expolisve economic growth.

Do actions that may lower the living cost and/or increase the net income. Increase pensions and welfare, keep excise taxes at a decent level, etc.

08.07.2013 18:13
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CAR12345
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Post: #7
RE: Economy, Trade,Budget

Thanks..., Smile You, shoul check out my state. How do youbhave low inflation, and high exports? Can anyone rate my economy? And how do I launch military actions with a basic account, not preium.

08.07.2013 18:19
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Helsworth
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Post: #8
RE: Economy, Trade,Budget

CAR12345 Wrote:
Noplan How, do you lower the GNI or income equality to like almost zero with expolisve economic growth.

Reforms like negative income tax, anarchosyndicalism, and Universal health care also help. But you achieve it more efficiently via task options.


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08.07.2013 18:20
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CAR12345
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Post: #9
RE: Economy, Trade,Budget

How does Universal healthcare affect my economy?Suspect

08.07.2013 21:52
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Roger Mexico
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Post: #10
RE: Economy, Trade,Budget

CAR12345 Wrote:
How does Universal healthcare affect my economy?Suspect


It lowers income taxes and cost of living, as I recall.

09.07.2013 06:35
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