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How do you lower unemployment?

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pp789
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Post: #1
How do you lower unemployment?

I'm pretty sure that no matter what I do I'll loose control of Southslavia.
(I guess Yugoslavia couldn't survive no matter what)
But I have reason to believe that the biggest problem with it wasn't debt, or yeah it was debt as well, but unemployment. Now maybe debt and unemployment are connected somehow. But how do you reduce unemployment once it happens and you already lost both popularity and influence.
As I said, there might be a connection between debt and unemployment, but I think the high rate of unemployment in Soutslavia came from the fact I made Acquisition taxes high and didn't change them for a while. I did this in hope to make people more equal, but I guess what really happened was that less and less people got employed.
This and the debt I got from deciding to develop cure for malaria (I decided for it, because Yugoslavia as a leader of the third world would develop something that would benefit third world the most and thus solidify its status as a leader) made my influence and popularity plummet so hard even if I would remember earlier to reduce my Acquisition tax earlier I think I would still have a very limited range up to 8% at most to reduce it. So no matter what, I'm pretty sure I was already in a "downward spiral" towards losing Southslavia...

So for the future I wonder, what could I do differently to keep this state? I mean other than not raising acquisition tax and developing cure for malaria to begin with.


[People] change their rulers and the public measures are changed, but it's only a change of one scheme of emolument to the rulers, for another.
-John Francis Mercer, 14.8.1787 at the Constitutional Convention in Philadelphia.
06.11.2013 13:44
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Helsworth
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Post: #2
RE: How do you lower unemployment?

In real life, private debt impacts aggregate demand - which in turn impacts sales and may cause unemployment.
In Ars-Regendi, however, public debt isn't connected with the unemployment rate.
Southslavia is a GDR template state. This template states must be ruled carefully, because in AR, once debt to GDP ratio reaches 300%, the population is already hating you a lot. My advice for you, would be to delete the state and start over. Keep in mind that the GDR economy is very dependent on government subsidies. And you need to change the budget EVERY winter and to reduce the nominal interest as much as you can. The key with the GDR is to keep the deficit in check, while you're growing the economy. You can't really rely on reducing fiscal drag to promote growth at first. You have to be patient, and hope that seminal economic tasks pop out at the beginning. It's easier to save action points, do reform propaganda and implement liberalism; but if you want to take the statist approach, it's a lot more difficult.
PS: Don't even think of starting projects with the GDR, until you've got the deficit under control.


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This post was last modified: 06.11.2013 14:24 by Helsworth.

06.11.2013 14:23
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Lyu
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Post: #3
RE: How do you lower unemployment?

Yes.. unfortunately, projects are risky for smaller countries. Not only because of the direct costs, but also because of the backlash that happens once the project is done (seems like everyone who worked on the project gets fired instantly). This is especially bad for said small countries because their GDP is low, but project costs are the same for every template, and thus use up a higher percentage of the GDP.

However, in your case there is another more important factor: Welfare. In Ars Regendi, unemployment is strongly influenced by welfare levels. Yours is already higher than average in absolute numbers (530 vs 499), and even more in relation to Living costs (your welfare is at 124% of living costs, average is 98%). Due to this, your people become lazy Pfeif

Also, yes, the GDR is the most difficult template.

This post was last modified: 06.11.2013 14:31 by Lyu.

06.11.2013 14:30
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pp789
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Post: #4
RE: How do you lower unemployment?

Thanks for the answers. I think what I'll do is leave Southslavia to run it course, even if that means I'll lose it next quarter. Then I probably won't start a new GDR template state until I get "better" in this game.
I pretty much started it just because being a basic player and thus having one tick state made me kind of bored and I wished to have additional state to rule over so I have more to do.
I might try UK next (hopefully it will work out better than GDR did).
This experience with GDR makes me wonder if success of my USA state is actually due to my good governing of it or is pure luck.


[People] change their rulers and the public measures are changed, but it's only a change of one scheme of emolument to the rulers, for another.
-John Francis Mercer, 14.8.1787 at the Constitutional Convention in Philadelphia.
06.11.2013 14:55
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Rising Phoenix
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Post: #5
RE: How do you lower unemployment?

In my experience, it is great to have 'failed' states in your dashboard - so that you can go back and learn from your mistakes and achievements. Daumenhoch

06.11.2013 15:12
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