I’m chugging along, running the British Economy, all of a sudden, I get a warning about the debt crisis, so I hike up taxes by a butt-ton over two turns and then my deficit falls from 54B to 3B. And in the next turn I’m flummoxed. I have a debt crisis, my gdp or gdp growth plummets by 35%. So, now what do I do? I have a 64B+ deficit. Do I cut taxes? The debt crisis will magnify, but it probably will anyways, will my gdp go up due to suppressed demand? Sure, but the debt crisis will become horrific then. Do I cut spending like a mad man? Sure, I could, but then all my socioeconomic indicators will crater, and so will my gdp, which will also worsen the debt crisis and wipe out demand. So, what is to be done to get out of this doom loop? Raising taxes any further will also make things worse. It seems that the debt crisis is unsolveable and that the status quo is the best option, except for increasing spending somewhat to curtail incoming crises. Of course the status quo is also bad, as income keeps falling overtime, but it seems to be the least worst option. Not to mention that the debt crisis (+29% inflation) with 8-9% QE and HM puts you dangerously close to hyperinflation (=/> 50% inflation). About 2-5% away from it depending on the values for QE & HM you have, if those values impact inflation. New players would probably have both, since they have no idea what’s in store. This would lead to new players getting struck with two very bad situations at once. This is a precarious balance for veteran players too.
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