Debt Crisis and Default

After crushing my head against a wall (in other words: after playing the Greece scenario 10-12 times, and always losing cause assassination, or winning with my budget in the trash) I’ve noticed two things (and not only, but let’s start from these!): the debt crisis situation is large and heavy, but no so catastrophic as it should be. I think that a certain level of gdp/debt (> 200% for example, but it depends from the nation and the total debt) the goverment should “ended” automatically, even if there isn’t a debt ceiling law (Europa case) … this is what happened in Italy, in november 2011 (I’m italian :D). Also, a default and the urge of extraordinary helps (Greece and Troika) away from the “traditional” goverment borrowing should be considered.

In Democracy 2 this “automatic defeat” dissuade to pile up debt over debt (tax-and-spending) in keynesian style… now, I don’t have these troubles. I have been relected a lot of time with deficit of >70/80 Billion, and all the electorate was happy and smiling (and this could be ok… but it could be useful introducing some mechanics to punish overgenerous player).

Anyway, a huge game :wink:

I agree up to a point. It does seem mad that I can scrap income and sales tax just before an election and win on a landslide, even though the country’s finances are in ruins, however I didn’t like the debt ceiling in Democracy 2, because for the vast majority of countries, it simply isn’t accurate. There’s a lack of confidence in a Government, which can be caused by a debt crisis, but some governments have managed to work their way through debt crises, so I don’t think it should be an automatic end game. I like the idea of adding irregular sources of borrowing, such as the Troika. Not entirely sure how that could be integrated though.

With the Greece scenario, you can either do a cheat - income tax and flat income tax combined, both around the 40% mark, no-one minds apparently (bit of an oversight there), that makes it stupidly easy. The proper way of doing it, sales tax is very much your friend, as well as import tariffs I’ve found.