Factories explained

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Forster

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As Japan I sphered Manchuria and my economy that was showing 300 -500 continuous profit dropped to -400. As soon as I kicked Manchuria out, my economy go healthy right away.
 

unmerged(164485)

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Really nice thread.

I would like to know, why when the capitalists build a factory it gets auto subsided and why the profit of state owned factories (under state capitalism or planned economy) isnt going into the budget as additional income ?
 

EUnderhill

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Really nice thread.

I would like to know, why when the capitalists build a factory it gets auto subsided and why the profit of state owned factories (under state capitalism or planned economy) isnt going into the budget as additional income ?
You can always turn the subsidies off yourself; I usually wait until 500-1000 workers are there, as undermanned factories sometimes have trouble establishing themselves.
 

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So, all the sphereing thing is a matter of SHARING (maybe with a bit of a random factor), not utter dominance, isn't it? The master has a bigger share, but that's all? If I understood it well, seems logic to me. Knowing this you don't even need to bother about the real formula behind all the process, just with some intuition and practice I think these situations of Sphereing = Bankruptcy could be avoided - being the ideal and safest case of all sphereing countries with totally different industry, so you establish a specialized common market (Sweden: Wood industry, you: Iron industry, and so on), benefiting both countries in the process.

That's exactly it. When you sphere a country you tie their economy to yours. The sphere controller ranks first in the relationship so it'll buy first. This is why sphering an industrial nation can ruin your economy. If you and your sphere are involved in the same industries, you'll get the resources before your sphere. Your sphere will see a collapse in their own industries, and in turn your own economy will suffer. Specializing your common market is key to max profits.
 

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Half of the paychecks go to the capitalists, which is 17.522 / 2 = 8.761 earnings before taxes, 7.753 after taxes (8.761 * 0.885) , which is also the combined salary of the single capitalist POP in Saxony.
The other half goes to the clerks and craftsmen, which will get also 7.753 earnings after taxes. In fact the sum of the other pops salaries (3.3+4.3+0.08+0.08) is 7.76 - there is some rounding here. As far as I can tell, clerks and craftsmen are paid the same rate, since 7.6 / 9219 (earning of craftsmen / amount of craftsmen) is roughly the same than 0.16 / 186 (earning of clerks / amount of clerks), which happens to be 0.001 .

So do minimum wage reforms change the ratio of profit going to workers vs capitalists?
 

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So do minimum wage reforms change the ratio of profit going to workers vs capitalists?

Yes - ish. They don't actually alter the ratio calculation itself, but do force the factory to pay a set minimum wage to working POPs as part of it's fixed expenses, so indirectly they improve the ratio in worker's favour.