Unemployment and GDP


#1

Is GDP supposed to drastically increase Unemployment?
I am just asking because every relation between stuff seems to make so much sense, except this one.
I mean people get richer, which leads to everybody just loosing their jobs – What?!
It doesn’t really seem to make much sense.


#2

As an economist in real life, I wont lie, this one baffled me too. The idea that an increase in GDP would correlate with an increase in unemployment has to be either a bug, or a hilarious misunderstanding of Okun’s law.

Ill post the wiki page on it here for reference, but basically, it demonstrates a direct relationship between GDP and employment rate. I still managed to maximize my GDP and lots of other things on my first playthrough, but my unemployment was pretty high as a result of it. There is of course debate on the law, but it has been a pretty conventional cornerstone of policy for half a century now.

en.wikipedia.org/wiki/Okun’s_law


#3

There are a few like thgis in the game.

I am thinking that some things have been tweaked for game balance so that powerful “strategies” have consequences.

Can’t say I necessarily agree (if this is indeed the case) but I do understand the inclination.

The developer is a pretty cluey fella, so I doubt they would have any trouble understanding cause and effect.


#4

This doesn’t work the way I maybe think you guys think it does. And I think the misunderstanding of this is more of a UI issue than it is a gameplay one.

At it’s maximum value, GDP doesn’t add to unemployment at all. When GDP is lower, it adds more to unemployment. As such, a low GDP gives more unemployment, and a high GDP gives lower unemployment. Maybe this could be better displayed by having a low GDP have a green bar and a high GDP have a red bar, or it always have a red bar of various sizes to make it clearer. Anyway, the point is a higher GDP gives less unemployment, which is what you’d expect.