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High Unemployment Rate in Resource Powers - Blue Wizard - 18.07.2015 19:07

Fellow Players:

Sacraland is my second resource power, and much like my first resource power Wohareia, it suffers from a very high unemployment rate. Fortunately, my citizens are currently "very happy." Nevertheless, I do not understand why the unemployment rate is so high. There is a low capital tax, generous government spending, a healthy money supply, low interest rates, and brisk trade. If someone could please let me know if I am missing something, I would greatly appreciate it.

Thank you very much,

-Jay


RE: High Unemployment Rate in Resource Powers - Helsworth - 18.07.2015 20:04

Blue Wizard Wrote:
Fellow Players:

Sacraland is my second resource power, and much like my first resource power Wohareia, it suffers from a very high unemployment rate. Fortunately, my citizens are currently "very happy." Nevertheless, I do not understand why the unemployment rate is so high. There is a low capital tax, generous government spending, a healthy money supply, low interest rates, and brisk trade. If someone could please let me know if I am missing something, I would greatly appreciate it.

Thank you very much,

-Jay

Yes, it's an issue I have raised too with the Russia template state. In real life, Russia has no problem of double digit unemployment or above 6%. Even after Employment reform (with very low income tax to encourage labor participation) and large fiscal deficits, the unemployment rate trends to go up - automatization or state age having nothing to do with it. I know Ars-Regendi doesn't work according to the sectoral balances (G-T)= -(I-S) -(X-M) but I always insisted that the behavior of the unemployment rate in the non-USA template states is too unrealistic.
That goes for the India template state too. In real life, India is close to text-book full employment; good lack doing that in Ars-Regendi.


RE: High Unemployment Rate in Resource Powers - Blue Wizard - 19.07.2015 02:38

Helsworth:

Thank you very much for your reply. As someone who is knowledgeable about this issue, what do you recommend that I do?

Thanks again,

-Jay