Socialist challenge: modelling the Phillips curve

Based on the discussion in another thread that doing a socialist run is ‘too easy’ - rather than nerfing things I believe that perhaps things might be better balanced by adding a second crisis for late-game socialist runs.

Generally the challenge with socialist runs is overcoming the corporate exodus event and perhaps the debt crisis event. But eventually an experienced enough player will easily know how to beat these, from then on the game becomes easy.

One suggestion I have for Cliff, is to model the challenges faced by socialist and left wing governments when the post-war social democratic consensus prevailed, namely the problem of inflation. This can essentially be done by expanding the role that fiscal policy has on stimulus (ie investment in infrastructure like roads and rail, as well as health, education and housing should all be given GDP effects). Once GDP is maxed out at 100% or unemployment becomes 0% the economy should start to experience greater levels of inflation.

This is a big challenge you can see historically in many countries across the world which often is solved in 2 ways, austerity and hikes in central bank interest rates (which raise unemployment and reduces inflation) or through the Rehn-Meidner Nordic model which eliminates wage-push inflation through sectoral collective bargaining.

Another temporary fix policy that could by HIGHLY unpopular could be wage and price controls.

This would help balance the game by giving economic consequences to over-investment and under-investment in the economy and give a hefty dose of realism at the same time.

1 Like

I’d love to see more challenge in the path so long as there are rational solutions to them. These suggestions sound fantastic, and are perhaps best locked behind a high capital buy-in, assuming they’re radical, to better keep the early game uncomplicated.