Labor Income Share - Does it sound interesting?

Well, if you look at union busting in the States, Unions are effectively ignored (except where they have been long-established).

Your LIS mod may also fix the way the Laffer Curve is represented in-game. I don’t remember my exact conversation with Cliff about it, but while it’s not one size fits all (as I remember it is some sort of simplification), LIS might give a more dynamic feel to revenue for the player

In implementing LIS have you considered the elasticity/inelasticity of automation in your model (which differs with every country), or would that be too complex to adopt?

Perhaps to simplify, have one flat value? Like how Cliff considers Sales Tax in his game to be a flat VAT.

I acknowledge that higher automation may not lead to unemployment and I personally believe that automation and artificial intelligence technologies will not bring mass unemployment. But I assumed automation will decrease the LIS for two reasons.

  • Industrial automation is at rise because corporations want more profits. Therefore, I thought that it would be safe to assume that capital share will be greater than that of labor in the case of automation even if there is a weak positive relationship between automation & employment.
  • Most importantly, Cliff assumed that automation is a negative factor of employment and I intended this mod to be complementing the game (recent income tax change more specifically) instead of converting it. So I didn’t put much time to do some research to look for alternatives.

+regarding ‘it may differ by countries’, it is quite demanding to make a link have a different slope by missions when there’s little chance of players recognizing it. It takes simply too much time and efforts and this is a relatively small mod. I don’t see any reason to do that.

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I think that that’s a fair assessment.