
Originally Posted by
StephenT
You're getting caught out because you're thinking of it as "investment". It's not. How many mediaeval or renaissance governments had large state-owned research laboratories? None.
Your monthly income isn't research spending, it is your economy. It's the people of your country going about their business, building ships and trading goods and working at their jobs, and gradually over the years coming up with new ideas and techniques. You can't reduce your economy - short of destroying businesses and deliberately making yourself poorer - which is why the sliders always add up to 100%. All you can do is try to redirect the economy into favoured areas (trade, naval, etc) by government incentives, tax breaks and so forth - or skim off profit through harsh extra taxes and forced loans and currency devaluations (minting).
As for 'deficit spending' - again, no. You get annual income because your people pay their taxes once per year, but you have monthly expenses because your soldiers and advisers expect to be paid a salary. So if you get 100 ducats on 1 January and have to pay 5 ducats per month in expenses, total 60 per year (12 x 5), then you're meant to pay the wages out of the tax money and have 40 left over at the end of the year. If you can't resist the lump sum and spend the 100 all in January on shiny ships and an extension to your palace, then you'll be forced to mint each month instead to cover your expenses; but you'll suffer inflation that way, so it's a bad idea.