Democracy 3 tells you, what influences what. The gui is very supportive… As I remember, increased high earnings will give you just happier rich people and more air (and car?) traffic. That’s it. Happy rich people are good for nothing
Don’t be such a jerk. What i mean is left-wing, socialist policies. I know what is the terms of Communism and Socialism. But when you see someone who suggest private investment is inefficient and bad for people and support investment by the state, you generally brand that person as “commie”. That’s just a stereotype, like obama being called communist because of his health program.
But you know, internet is full of people like you who think they know better than everyone else.
Don’t get it wrong. No one is suggesting, that private investing is inefficient. (In fact, the lack of private investing is one of the mayor concerns in real world, even in Germany, where the people believe, the economy would be strong.) What I say is: It is inefficient, to lower taxes of rich people, hoping, they would take the relieve for investing. There is no empirical clue for this mechanism.
I think JP Morgan has published a report just a week ago, that the actual ammount of liquidity in the financial markets is the highest ever. So, there is enough money searching for good investments, but there is a lack of good opportunities.
Technology Grants are in Democracy 3 an appropiate way for forcing investments… This is a mechanism, that even works in reality.
Instead of lowering taxes to stimulate your GDP, implement tax cut policies which directly boost GDP, such as investor tax credits. This has a more targeted effect while relying on private enterprise. You generally don’t need to toy with income and corporate tax much, unless you have serious tax evasion issues.
Real world politics aside, my favorite recipe for winning the GDP battle is . . .
Minimize Corporate taxes, Shrink entitlements (mainly pensions), max out technology colleges and science funding, drive out the creationists, tackle crime with community policing and a hefty spy service. Works untill you get hit with a market meltdown.