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How to increase exports?

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thepresidentmaN
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Post: #1
How to increase exports?

Is there anything you can lower or raise in the budget to help increase your exports and overall trade? I'm looking to increase total trade but keep exports over imports and run a trade surplus.

06.12.2013 03:25
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Roger Mexico
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Post: #2
RE: How to increase exports?

thepresidentmaN Wrote:
Is there anything you can lower or raise in the budget to help increase your exports and overall trade? I'm looking to increase total trade but keep exports over imports and run a trade surplus.


Well, incidentally the game tends to somewhat model the fact that raising your own tariffs and subsidies will make countries you trade with want to do the same with their own. Tariff reductions seem to usually result in more of both exports and imports while steep tariff hikes will lead to reductions of both as foreign governments try to punish you for being protectionist and maintain their own trade balances. Keep that in mind.

Devaluing your currency (increase the money supply and cut interest rates) is supposed to have the kind of effect you're talking about (shift toward an export surplus), according to some other players who post here. I've never tried that, though.

06.12.2013 03:47
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Helsworth
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Post: #3
RE: How to increase exports?

It really depends on the template state. Since you're running the USA - the most effective way forth in obtaining big net exports is via task options. And of course, making sure that your MS is above your GDP.
Here's my current USA template state that I'm running. http://www.ars-regendi.com/rid14266/state/146181

In this one I focused on taxing capital more, while taxing consumption considerably less + negative income tax. I've been working at full employment for many many quarters now.


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This post was last modified: 06.12.2013 07:33 by Helsworth.

06.12.2013 07:33
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Titian
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Post: #4
RE: How to increase exports?

Helsworth Wrote:
It really depends on the template state. Since you're running the USA - the most effective way forth in obtaining big net exports is via task options. And of course, making sure that your MS is above your GDP.
Here's my current USA template state that I'm running. http://www.ars-regendi.com/rid14266/state/146181

In this one I focused on taxing capital more, while taxing consumption considerably less + negative income tax. I've been working at full employment for many many quarters now.


Good approach but in terms of exports this state is performing even better.

Also, do not increase Capital Taxes thepresidentmaN! Nono
I know some players seem to like to use this approach (mostly for (personal) ideological reasons) but one can see immediately why this is a extremely bad idea by simply having a quick look at one Bucharests economic graphs.


"If you grab them by their balls, their hearts and minds will follow." (Yes, Minister)

This post was last modified: 06.12.2013 11:49 by Titian.

06.12.2013 11:47
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Helsworth
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Post: #5
RE: How to increase exports?

Titian Wrote:

Helsworth Wrote:
It really depends on the template state. Since you're running the USA - the most effective way forth in obtaining big net exports is via task options. And of course, making sure that your MS is above your GDP.
Here's my current USA template state that I'm running. http://www.ars-regendi.com/rid14266/state/146181

In this one I focused on taxing capital more, while taxing consumption considerably less + negative income tax. I've been working at full employment for many many quarters now.


Good approach but in terms of exports this state is performing even better.

Also, do not increase Capital Taxes thepresidentmaN! Nono
I know some players seem to like to use this approach (mostly for (personal) ideological reasons) but one can see immediately why this is a extremely bad idea by simply having a quick look at one Bucharests economic graphs.


Too bad such a state cannot exist in reality, Titian. All that positive debt, huge budget surplus and big interest payments going inside the treasury. Where does that money come from? In reality, you would have destroyed your economy long ago. By purging the nongovernment sector out of all its savings piled up over time. Only a minority of the population would be employed. The government deficit equals the net surplus of the private sector in a given fiscal year. And only the government, the currency sovereign/issuer, can run deficits without going bankrupt. (S-I)+(G-T)+(X-M)=0
Ars is a great economic simulation game, but it's far from being realistic in this regard.


https://www.patreon.com/SerbanVCEnache
06.12.2013 12:20
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Titian
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Post: #6
RE: How to increase exports?

Helsworth Wrote:

Titian Wrote:

Helsworth Wrote:
It really depends on the template state. Since you're running the USA - the most effective way forth in obtaining big net exports is via task options. And of course, making sure that your MS is above your GDP.
Here's my current USA template state that I'm running. http://www.ars-regendi.com/rid14266/state/146181

In this one I focused on taxing capital more, while taxing consumption considerably less + negative income tax. I've been working at full employment for many many quarters now.


Good approach but in terms of exports this state is performing even better.

Also, do not increase Capital Taxes thepresidentmaN! Nono
I know some players seem to like to use this approach (mostly for (personal) ideological reasons) but one can see immediately why this is a extremely bad idea by simply having a quick look at one Bucharests economic graphs.


Too bad such a state cannot exist in reality, Titian. All that positive debt, huge budget surplus and big interest payments going inside the treasury. Where does that money come from? In reality, you would have destroyed your economy long ago. By purging the nongovernment sector out of all its savings piled up over time. Only a minority of the population would be employed. The government deficit equals the net surplus of the private sector in a given fiscal year. And only the government, the currency sovereign/issuer, can run deficits without going bankrupt. (S-I)+(G-T)+(X-M)=0
Ars is a great economic simulation game, but it's far from being realistic in this regard.


You are writing to someone who claims to have a wee bit more understanding of economics than you - Of course I know this state couldn't exist in reality. After all, I complained to Malone about the factors allowing the simulation to give birth to an economy like Influenza's often enough. But now I simply don't care anymore and ruthlessly use whatever there is to abuse in the economic matrix Hehe


"If you grab them by their balls, their hearts and minds will follow." (Yes, Minister)

This post was last modified: 06.12.2013 12:33 by Titian.

06.12.2013 12:31
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thepresidentmaN
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Post: #7
RE: How to increase exports?

Thanks for the quick replies guys! From what I can understand lowering tariffs and Capital taxes should increase trade. Also devaluing my currency a bit would help. However, would increasing or decreasing acquisition and excise taxes have any affect?

06.12.2013 20:01
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Titian
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Post: #8
RE: How to increase exports?

If you were to choose me rather than Helsy as your advisor, I'd say keep your acquisition taxes low and your excise taxes high. This allows for cheap labour and nobody can buy anything -> exports Devil

Anyway, the best way to increase exports is to destroy your currency. Feel free to follow the example of Influenza if you like what you see Zwinker2


"If you grab them by their balls, their hearts and minds will follow." (Yes, Minister)

06.12.2013 20:21
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chad7405
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Post: #9
RE: How to increase exports?

This post along with many others I've seen advocates demolishing your currency exchange rate to gain more exports and consumption but what are the benefits of a strong currency? Kopfkratz Hopefully either helsworth or Titian can help Pfeif

06.12.2013 21:42
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Helsworth
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Post: #10
RE: How to increase exports?

chad7405 Wrote:
This post along with many others I've seen advocates demolishing your currency exchange rate to gain more exports and consumption but what are the benefits of a strong currency? Kopfkratz Hopefully either helsworth or Titian can help Pfeif

The benefits of a strong currency? A happier population. GINI is protected from increasing. A cheaper living cost.
One can obtain, very easily with the USA template state, high net exports WITHOUT increasing the money supply like hell, in efforts to devalue the currency. All you need to do is have patience for the relevant economic tasks to pop up, whilst running an appropriate deficit to fuel economic growth.

@thepresidentmaN
For starters, if you're running a classic state and not a world state, then you don't need all that heavy defence spending. Implement the Pacifism reform, and focus that shortfall of spending either to a strident decrease in taxation, an increase of spending in other public ares, or a mixture of both.
I like to focus on taxing capital, while leaving acquisition and excises taxes rather low. The latter is regressive anyway, so the lower it is the better. And that also translates well into the shadow economy, thus shrinking it.


https://www.patreon.com/SerbanVCEnache

This post was last modified: 06.12.2013 22:30 by Helsworth.

06.12.2013 22:29
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