Best strategy to fight against budget deficit and low GDP


I bought the game yesterday and spent several hours on it. Very enjoyable game but i think a little bit more balancing is required.

I am quite new to the game and i find it very hard to fight against recession. Here is what i do :

  • Reduce taxes for the rich to stipulate economy.
  • Cut state pensions-health services-military spending.

But this always bring my GDP down and this in turn increases my deficit even more. What i am doing wrong ?

In essence, you’re taking money out of the economy without having anything which can bolster up GDP.

One of my usual tactics is to fire up technology colleges and grants for small businesses as soon as possible - this gives you a GDP and technology boost which will soon help GDP.

Military spending tends to be a good thing to have high, keeps the patriots happy, decreases unemployment and many other side effects.

Dude, never decrease taxes for the rich hoping they would invest. It’s the same mistake many govs so. Instead, take their Money and do the investing yourself.

In other words, be communist you say :slight_smile: My observation is also that socialist policies tend to be more successful but i want to achieve the same success as a laissez-faire capitalist :slight_smile:

And here’s yet another person who’s absolutely clueless as to what communism is.

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 :slight_smile:

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.

A polite reminder before things get out of hand:

Just like everyone else here, when you registered the creation of your user account for the Positech Games website, you also clearly agreed to the following:

In other words, debate the politics - not the people.

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. :slight_smile: 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. :slight_smile: