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+--- Thread: Economic advice (/showthread.php?tid=31644)
Economic advice - Justine27 - 16.04.2018 13:38
Hi, I just need some advice to improve my economy for a long term.
RE: Economic advice - MrProper - 17.04.2018 17:26
Welcome to the Ars Regendi Forum Justine.
The improving your states economy is possible in many different ways, but goes most easy via economy friendly tasks solving (e.g. picking "liberal" options). However, boosting the economy can be tricky, since you often have to balance out different interests and aspects (for example environmental concerns, individual rights, public service vs. private, ...).
Your states budget of also has an impact on your states economy. The same goes for some reforms. You can either experiment and figure it out yourself, or simply search the forum for more information. Most alliances also have guides on state craft, and may be helpful in that respect.
RE: Economic advice - Dennis Skinner - 17.04.2018 18:00
Don't tax too much, don't take on too much debt (but don't take on too little) and don't pass laws that are too onerous on capital/labour markets etc.
Your state's inflation seems pretty high (although the amount of growth is also quite high), you may want to try to raise interest rates and not expand the money supply too much. The savings rate is also low and ought to be helped with higher interest rates.
You can easily afford a lot more debt with it being under 10% of gdp. So you may want to slash taxes or increase spending on things like education and admin (which I think boosts infrastructure iirc). The tax burden is pretty low at 24.55% anyway.
RE: Economic advice - Justine27 - 23.04.2018 12:52
I want to try to spend on education and others to boost infrastructure and also i try to increase interest rate
RE: Economic advice - Dennis Skinner - 24.04.2018 12:45
I would say continue how you are. Spending can still be increased (I wouldn't worry about a deficit below 10billion or ~4% GDP with your growth rates), as can interest rates (easily up to 4 or 5%).
The other big thing to consider would be a tax reform. Both a flat tax and negative income tax are a more efficient form of taxation (and will help long term growth). Flat tax is probably better purely for growth, but negative income tax will boost incomes of the poorest more. So it's personal preference there.
RE: Economic advice - Justine27 - 13.05.2018 01:18
I would say continue how you are. Spending can still be increased (I wouldn't worry about a deficit below 10billion or ~4% GDP with your growth rates), as can interest rates (easily up to 4 or 5%).
The other big thing to consider would be a tax reform. Both a flat tax and negative income tax are a more efficient form of taxation (and will help long term growth). Flat tax is probably better purely for growth, but negative income tax will boost incomes of the poorest more. So it's personal preference there.
I also want to improve the savings ratio of my country. How can I possibly do that?
RE: Economic advice - Richard Wilson - 24.07.2018 19:36
* Reduce capital tax to zero.
* Reduce income tax.
* Raise excise tax.
* Reduce tariff.
* Privatize your health care.
* Pacifism, if you so decide / have viable alliance defense or treaties against foreign aggression / invasion.
Oh, and,
* Administration reform
* Negative income tax
https://www.ars-regendi.com/state/209777-national-alliance-your-new-order/show.html