Circulation of money in V1 and V2

[KonradRichtmark]

It pleases me that POP income in V2 is more dynamic than in V1, that money put into spending sliders finds itself directly in the pockets of POPs rather than vanishes into nowhere.

This leads me to a question, does money in V2 circulate entirely as it does in the real world, or does money appear out of nowhere and get added to it? Does money spent in certain ways disappear from the circulation? And if there are injections and leakages just to keep things simple, what prevents the world from either running out of or swimming in money?

How did it actually work in V1? I know purchases of goods moved money between countries and POPs, but what about other kinds of expenditures? I guess that money spent on (say) social reforms or building divisions went up into thin air? If so, why didn't the total amount of money in the world run out? What kept the circulation going? The defaulted loans of bankrupt countries?

 

[unmerged(63310)]

In V1 each class had a certain basic income I think is how it worked... money leaked out many ways though so there might have been more injections as well. RGO had no inputs so everything sold was pure profit maybe? POPs with 0 savings and unemployed still had some basic purchasing power to buy necessities like food from RGO. I guess POP growth was so high in V1 that the economy remained in balance though with the world reaching a few billions already in 1920s the POP growth was mostly too high but if it was needed to inject income that would make sense.

I'm interested in what happens to savings for POPs in V2 as well... because I had some very rich clerk and even eventually craftsmen POPs in V1.

IF a national bank tech is established can that create a loan pool aside from capitalists accounts? So the savings of the rich non capitalist POPs accomplish something as well? Or even a succession of banking techs allow savings to become more useful?

 

[henkalv]

In V1 each class had a certain basic income I think is how it worked... money leaked out many ways though so there might have been more injections as well. RGO had no inputs so everything sold was pure profit maybe? POPs with 0 savings and unemployed still had some basic purchasing power to buy necessities like food from RGO. I guess POP growth was so high in V1 that the economy remained in balance though with the world reaching a few billions already in 1920s the POP growth was mostly too high but if it was needed to inject income that would make sense.

I'm interested in what happens to savings for POPs in V2 as well... because I had some very rich clerk and even eventually craftsmen POPs in V1.

IF a national bank tech is established can that create a loan pool aside from capitalists accounts? So the savings of the rich non capitalist POPs accomplish something as well? Or even a succession of banking techs allow savings to become more useful?

or that when a clerk or any other middel class pop gets enough savings they would move up to the upper class, same with lower to middel class

 

[telesien]

or that when a clerk or any other middel class pop gets enough savings they would move up to the upper class, same with lower to middel class

I believe it will be so. It is logical solution for the new dynamic system. Clerks and artisans have close to becoming capitalists by their profession. It would be also nice if the technologies like stock market or limited partnership company would increase that chance.

 

[unmerged(3921)]

To answer the OP's question, no there was not a closed loop where the sum of all economic entities spending was equal to the sum of all items bought. For instance if a country flushed a inventory load of luxury furniture into the world market, it would all sell in one day. Even if there weren't buyers of that much lux furniture. The excess supply would simply be assumed to be absorbed and the seller would get income for those sold goods. Similarly even if no grain was being offered on the world market, the POPs would continue to spend their money. Basically there was no calculation of where the demand curve and supply curve intersected. Instead the demand curve was used to generate prices at which countries could sell factory/RGO goods. Where supply and demand did meet up was when the central government (but not POPs) of the human player or the AI attempted to buy goods on the world market. In that case, their orders could be filled, only if someone was at that time trying to sell excess goods.