Free markets and the resource flow as germany

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Pang Bingxun

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Nov 22, 2011
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I was interested to evaluate freemarkets vs. central planning as germany. Due to ideology germany can only make one move free markets or have full central planning which might favour the later. Central planning tends to be more effektive in the short run and allows higher tc, but all of this at the expense of high resource consumption. Free markets are more efficient, especially resource wise, and germany is short on them.

After building 10 factories each in Hannover, Cologne, Oppeln and Berlin, building 6 factories in Vienna and building Infra up to 200 in all national provinces germany has 351 base ic which with +15% from techs, +5% from ideas and +20% from ministers gives 492 effectiv ic at free markets and 580 effective ic at full central planning. Resource production at techlevel 1938 is:

1865.66 energy
480.06 metal
7.03 oil
147.65 rares

Regular resource consumption of effective ic at free markets is
984 energy -> 881.66 energy surplus
492 metal -> 11.94 metal deficit
246 rares -> 98.35 rare deficit

Regular resource consumption of effective ic at full central planning is
1160 energy -> 705.66 energy surplus
580 metal -> 99.94 metal deficit
290 rares -> 142.35 rare deficit

The energy could probably be sold at an average trading ratio near 1:1. Selling all of them after Danzig might be a problem due to trade interdiction.
The metal imports can probably be covered by initial trades in case of free markets, additional trades would likely have trading ratios better than 1:1.2. Importantly interdiction is no problem, hungary and sweden have plenty metal.
The rares are germanies real weakness. There are some intial trades at a trade ratio 1:1, new trades however must tolerate trading ratios of 1:1.2 and worse. The average trading ratio would likely be slightly better than 1:1.2 at free markets and slightly worse at central planning.
Germany needs to import oil and preferable before danzig. A stockpile of 300 oil per day times 3 years seem reasonable. An average trading ratio of 1:1.15 seems reasonable. For the following calculations i will assume all trading ratios to be 1:1 for reasons of simplicity.

Free markets: Over three years 63479.52 $(3 x 360 x 881.66/15) are earned from energy. Over three years 1719.36 $(3 x 360 x 11.94x2/15) need to be paid for metal. Over three years 63281.52 $(3 x 360 x (300-7.03)x3/15) need to be paid for oil. As imports of rares become problematic after Danzig a stockpile of ~3 years till mid 1942 needs to be accumulated till Danzig, so imports need to double the daily deficit. Importing needed rares will costs 56649.6 $(3 x 360 x 98.35x2x4/15). That totals to 58170.96 $ to be paid till Danzig.

Full central planning: Over three years 50807.52 $(3 x 360 x 705.66/15) are earned from energy. Over three years 14391.36 $(3 x 360 x 99.94x2/15) need to be paid for metal. Over three years 63281.52 $(3 x 360 x (300-7.03)x3/15) need to be paid for oil. Importing needed rares will costs 81993.6 $(3 x 360 x 142.35x2x4/15). Thats totals to 108858.96 $ to be paid till Danzig.

At one step free markets and initial ideas germany can produce 2.288 $ per icd, at full central planning and initial ideas it is 1.76 $ per icd. So at free markets 25424.37 icd or 23.54 ic over 3 years need to be paid, at full central planning it is 61851.68 icd or 57.27 ic over 3 years. free markets save 33.73 ic at importing resources, but central planning gives additional 88 icd, so this leaves an advantage of 54 ic for centraplanning. At full hawk lobby not having the one step free markets will increase icd per military units by 10.8%, so if spending 250 ic at average at building military units the advantage of central planning halves to 27 ic. Supplies and reinforcements make no difference, repairs only make a small difference in favour of free markets. Most money expenses are reduced, this increases the 27 ic to something bigger. Unless upgrades or global resource shortness become relevant central planning will be superior and certainly suits a tc heavy strategy with huge armoured forces. Importing the double of the a daily deficit of 98.35 rares will likely exhaust the world market. So for germany it is probably wise to either build factories and go the one step free markets or go for full central planning and build near no factories.

PS: My figures are noted unreasonably precise. In practice the simplyfictions i made will cause big discrepancies to those figures.
 
The basic idea as Germany is to seize the needed resources. Still looks good if you want to play in a different way as Germany. Can Germany go full free market?
 
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The basic idea as Germany is to seize the needed resources.

Against normal AI that should be possible somewhat easy. Against human opponents it might get more difficult.

Can Germany go full free market?

Only one step is available as nazi, fascist or paternal autocrat. Before moving sliders to more free markets germany needs to become a democracy.

NA and FA can go full central planning or 1 step free markets.
PA can go 1 step free markets or 4 steps central planning.
SC can go 4 steps free markets or 3 steps central planning.
ML can go full free markets but no step central planning.
SL can go 3 steps free markets or 2 steps central plnning
SD and LWR can go 1 step free markets or full central planning
LE can go full central planning and not below 2 steps central lanning.
ST can go full centtral planning and not below 4 steps central planning.

In general the right wing ideologies are favoured within those regular means to shift this slider. Events however can move sliders without those restrictions. Also influence nation may lead to strange situations where left wing governments have full free markets because UK or USA did influence them.
 
A stockpile of 300 oil per day times 3 years seem reasonable.

Pang, this seems very high, and expensive to obtain. What is such a stockpile to be used for?
 
once japan has malaysia, rares are not much of an issue.
also germany will have the biggest army in the world for the early and mid parts of the game. Also it has the highest skilled tech teams. With full standing army, mil salaries and tech salaries are skyrocketing with free market. The equation is made even worse by the face that his money production capabilities are not raised with having only one free market.
Experience shows that full cp is way way more effective than a single free market. Either aim for SC and 3 free market or forget it and go for full cp. And race for resources.
[still too bad germany has never have any oil problems]
 
Pang, this seems very high, and expensive to obtain. What is such a stockpile to be used for?

It is better to be safe than sorry. Arm1941-SpArt1940 uses 7.4 oil and 15.23 tc during combat. 580 effective ic at techlevel 1942 give 1044 tc which can supply nearly 70 Arm1941-SpArt1940. A slight tc overload during heavy battles is acceptable and armour is the most manpower efficient land unit. 60 Arm1941-SpArt1940 use 444 oil during combat and movement.

also germany will have the biggest army in the world for the early and mid parts of the game. Also it has the highest skilled tech teams. With full standing army, mil salaries and tech salaries are skyrocketing with free market. The equation is made even worse by the face that his money production capabilities are not raised with having only one free market.

The ic costs of those money expenses increase with each step free markets and reduce with each step cp.
At fully closed society, initial ideas and one step free markets 10 skill 7 teams cost 42.92 ic, at full cp it is 36.1 ic.
At fully closed society, initial ideas, full professional army and one step free markets 2400 manpower(200 Inf-SpArt) will cost 55.44 ic in salaries, at full cp it is 39.59 ic.

once japan has malaysia, rares are not much of an issue.

Assuming it is used as a puppet and trading is efficient this is likely to be true.

[still too bad germany has never have any oil problems]

If rares happen to become really rare, than oil will be a problem because of needed symthetic rares.
 
I have had more oil problems as the USA and UK thgan Germany. Mostly because of a huge amount of bombers and mechanized infantry (100+ divisions of mech/mot/arm)

Rares is Germany's biggest problem and it doesn't seem that hard to get a stockpile and trade with Italy/Axis/Turkey/Nationalist Spain/Finland/Sweden/Switzerland oncer the war starts.
 
Rares is Germany's biggest problem and it doesn't seem that hard to get a stockpile and trade with Italy/Axis/Turkey/Nationalist Spain/Finland/Sweden/Switzerland oncer the war starts.

Those nations have only minor rare surplusses or even some significant deficits like italy. In total it would seem to sum up to zero. Germanys hunger for rares can easily exceed what soviet union has as a surplus. Once allies+komintern are not available for imports of rares conquest is the only "decent" option for germany to get the needed rares. Other options are wasting ic, not increasing effective ic or using synthetic rare plants. But to cover their needed oil via synthetic oil exceeds germanys energy. Having stockpiles for rares till 1943 is possible. Stretching those reserves with synthetic rares fueled with imported oil might be possible for some time, but for each 100 rares 394.74 oil are consumed.
 
Those nations have only minor rare surplusses or even some significant deficits like italy. In total it would seem to sum up to zero. Germanys hunger for rares can easily exceed what soviet union has as a surplus. Once allies+komintern are not available for imports of rares conquest is the only "decent" option for germany to get the needed rares. Other options are wasting ic, not increasing effective ic or using synthetic rare plants. But to cover their needed oil via synthetic oil exceeds germanys energy. Having stockpiles for rares till 1943 is possible. Stretching those reserves with synthetic rares fueled with imported oil might be possible for some time, but for each 100 rares 394.74 oil are consumed.

Hence my earlier comment about seizing resources. I normally do not have rare problems as on normal difficulty you just trade to get them pre war and on harder difficulty you have less IC to burn less rares. Eventually you will capture the USSR/UK or USAs stockpiles and in my recent game on VH I got the UKs in 48 and USA in 51 or so and I have a million or so of each resource.

And on lower difficulty you trade pre war and grab the middle east and India. hell you can get Indonesia as well before Barbarossa if you want. Indonesia+Ceyon occupied and/or puppet naitons= good rares.