AHD Economy Discussion

[GAGA Extrem]

(1) Do not subside factories for too long.
It is good to subside to start your economy, but if you do it too long, you will end up with upgraded factories that produce goods which are actually not profitable. This will drain ressources that could be used by other, profitable factories instead and creates a mass of craftsmen that have no profitable work to do. Try to cancel subsides from time to time, check the factories that are shut down, restart subsides, but delete some of the unprofitable factories and replace them.

(2) Research commercial techs.
Industrial techs just allow you to generate more goods in factories - which is nice for small nations, but not that necessary for big ones. Instead try to get techs that reduce input or increase output. This will allow you to generate more goods with less ressource input, thus increasing your profit margin. Forgetting about commerce is a good way to suffer from an economic crash around 1880 upwards, when all other competitors start becoming more efficient.

(3) The market is susceptible.
Large-scale wars with many occupied provinces or large nations achieving GP status can cause huge market fluctuations that can take several years to adjust.

 

[GAGA Extrem]

"Management Strategy" in 1870 is by far the most important tech in regards to industry. It grants a +3% output bonus, and the inventions grant a total -9% input bonus!

Maybe this is the reason for economy problems around this timeframe - if some or many industrial powers research the tech quickly, market competition skyrockets and other nations suffer an economic downfall.

edit: Gna! Emu'd!

 

[GAGA Extrem]

The 1870's are indeed the decade with the most important choises, and a crossroad for most nations.

There are several important techs:
Machine Gun for colonisation and military expansion.
Management Strategy, Steel Railroad and Organic Chemistry for industrial developement.
Expressionism for prestige.
Social Science for permanent social and poltical improvement via CON.
Revolution And Counterrevoltion for another NF and the Women's Suffrage Movement.

 

[Darkrenown]

Fun facts:
Opening one single factory costs you money, opening all of them at once, doesn't cost you a single dime.

When I open closed factories, they get a ton of workers, make huge surpluses and after few days with nice surpluses, they go broke. It's a bit like premature ejaculation... o

1) I just started a game as the UK, switched to Tory party, closed and opened all factories. Cost me 40k.
2) When you open a factory, the only you pay goes into the factory budget. So if you open an unprofitable factory it will have startup pile of money you just paid to hire workers, but shortly it will run out and close again.

 

[Darkrenown]

But that's not true. Pop growth, Lit and Con all increase the demand from pops, plus lux goods are bought multiple times when the pops can afford it, plus industry gets higher throughput so demands more inputs, this all increases demand for goods.

Also, Grain is a life need, you really don't want demand to be 4 times supply...

 

[Darkrenown]

Factories fire people when not making profit, reducing output until the good is profitable again.

 

[podcat]

Is trickle down economics vindicated in this game? As in, if you have low taxes on the rich, they'll create more factories(more "jobs"), which ultimately benefit and enrich all classes, making your tax revenue increase?

yes, if capitalists have more money they can invest more of it in new factories (or expanding existing) so its all part of the system

 

[Darkrenown]

I end up needing to subsidize everything due to them being profitable/unprofitable on a day to day basis and never being consistently so. Also because a level 10 factory that goes bankrupt losing 9 levels when I wasn't looking for a momentary hickup is a load of horse offal.

It's also not possible. A factory must be making a loss for 30 consecutive days before it shuts down or loses a level.

Edit: Oh, and while I am here, the beta patch in the tech support forum is probably rather helpful to the economy in general in case people have not noticed it yet.