Jump to navigation Jump to search
Managing the '''[[Budget]]''' is one of the most important components of game play.
Perhaps counter-intuitively, the bulk of national income is derived from poor taxes. Since POP types in the middle and upper classes are generally more desirable, players often set High class taxes at or near zero to maximize capitalist investment in the economy. Middle class taxes should typically be set at lower levels (going to zero in the later stages of some games) to encourage successful lifestyles for those POPs. Tariffs are a useful way to generate income as well, but should be used carefully and sparingly, with notice given to whether or not POP needs are being met (refer to the pie-charts in the budget window: large sections of red will create POP demotion and increase [[militancy]]). As a result, tariffs are ideally set at 0%, but when necessary can be used in the 1-20% range for periods of time. Tariffs typically restrict economic growth in general (POP spending ability, factory efficiency and profitability, etc.), thus when possible they should be used on a limited basis.
In terms of budget expenditures, the simplest rule to apply is that all sliders should be set at 100%: e.g. maximum spending. This is problematic for some nations at the beginning of the game, but as a general rule this is a sound approach because all expenditures significantly help the nation. Education spending increases research, administrative spending increases the efficiency of collecting taxes, military and national stockpile spending make it possible to field an army, and so on. Thus, the primary areas that ever see cut backs for some nations, depending on national circumstances and a player's goals, would be reduced spending on the military slider first, and reduced (generally not to fall below 50%) spending on the national stockpile.