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brandnew70x7

Existentialism On Prom Night
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Playing as a civilized china,doing very well low tariffs, no taxes on the rich, but they cannot break 90 dollars! The luxury goods keep fluctuating from 85% to 0% too. What is going on here? Am I missing part of the puzzle? I've never had this problem..
 

unmerged(25818)

Second Lieutenant
Feb 16, 2004
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At some point later in the game (usually after 1890) luxury goods begin to hit the market and instead of paying for improvement your capis will begin buying toys. The only things you can do are lower taxes and tariffs (done) and make sure all the factories in their home state are open, staffed and profitable. Beyond that, your only recourse may be to begin subsidizing imports.

This is why lasseiz-faire results in economic implosion: by the time you've given the capis enough money to buy their toys AND industrial improvements you may as well have built the damn things yourself.
 

unmerged(81390)

Maharaja of Fenno-Scandia
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This is when you start considering having a Communist/Facsist/Reactionay coup, so you'll get rid of the capitalist oppresors forever! :p
 

OHgamer

Victoria's Plastic Surgeon
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export export export, that is the root to gaining all POPs their daily income. If capis have a reserve income hovering in the 90s, that means they make enough to build to 100 to buy luxury needs, but when they buy them it knocks their reserves back down below 100, and you end up in the dreaded luxury goods loop.

So you have to find a way to increase their income by either exporting more, lowering tariffs (and maybe subsidize if you can afford it), cut taxes (which you've done) or, if you are producing cars and/or airplanes to put out onto the WM, stop production. REmember that your POPs get first dibs on anythng you put out into the marketplace, free of tariff charges. If you are exporting cars and/or airplanes, your capis would be at the top of the list to buy, and that could very well be what puts them into the luxury goods loop. Stop exporting, and you might see their reserves go back over 100 and start building again. Expand your economy further so that their daily reserve growth is stronger, and then try exporting cars/airplanes again. Provided the rest of the world does not produce cars/airplanes in amounts that your POPs can access given your overall ranking in game, you can grow your economy enough to deal with this hurdle.