I've tried reading the strategy guide and the manual on the economics section.
Coming from EU 3 where none of this existed I find that most economies seem to go in a death spiral for some reason that isn't obvious to me.
So far Brazil, Argentina and Sardinia-Piedmont all suffer from this.
For Argentina I was able to curb this by dropping my military spending to 0.
The others seem to death spiral pretty quick. I can borrow a ton of money to try to keep myself afloat or drive the taxes to 100% but it only seems to pause it for a bit before I bottom out again. Is there any tip to kick starting the economy where I don't go into this death spiral?
I played Argentina to start learning the game. I found it takes about 2 months for everything to balance out and gain stability from the starting position. Basically, POPs burn through their existing money, etc. etc. for about 2 months.
I found it successful (and am still learning the right balance) by doing this:
1. Increase all taxes to 100%. It's
effective tax not the tax slider position that drives POP behavior so you'll likely be in the low 20s% effective tax even with slider positions at 100%.
2. Drop military spending to under 10%.
3. Make minor adjustments downward in education & administrative spending as necessary.
4. Take control of trade for a bit and adjust the trade slider downward as necessary (I was under 10-20% at the start of most games.) Buy resources for your stockpile manually and gradually as resources permit.
5. Research Free Trade for the RGO benefits. This could take 2-3 years depending on conditions, so just ride it out.
Side note: don't worry too much about running a deficit... especially if you can get in a war early with some neighbors (like Bolivia) to gain prestige and put you in the top 16 (secondary power) status for the Tech bonus benefits. I don't like running more than about 1k in loans or interest at .1. And I'll usually pay that off as soon as I get Free Trade so that I can take out more loans or use buy resources directly to kick start industrialization.
Hope this helps. Be patient in the first 2-3 years and don't panic. It bottoms out it just takes awhile, then you gradually tweak back up.
B