Panncakemouse, First of all: I'm loving to talk with you about this matter.. Also I hope you take my words peacefully and don't think other way..I know the economy system is not a simple question, and is more complicated to simplify to a game interface.
No worries. To do these analysis of business environments and their interrelations is part of what I do for a living so I don’t mind a nice discussion at all. However, I think that you are dead wrong here and will continue to argue the matter.
I will give you four (in part detailed) explanations of why/how I think you are wrong regarding
1) Time of effect on IC / Dissent
2) Strategic warfare (starve UK out)
3) Production and civilian business logic
4) IC as a system of suppliers, not stand alone factories
All three headings are somewhat connected and all three also relates to the issue of a CG stockpile so htere will be some repetitions of examples and concepts.
1) Timing and CG / CG stockpile
You have a perfectly valid point that the time from decision to implementation to actually running out of stock of a certain item can be (probably is) is longer that one day. However, that does not mean that the effect cannot be instantaneous, or at least very fast.
IRL there will be some delays, miscommunications and mistakes that add to the time lag, but for game purposes I don’t see the point in simulating this. If you would simulate this I would argue that it would make more sense to do so for combat orders with random attack delay after orders are given and sometimes units doing the wrong thing. But this is again simplified and included in the randomness of combat simulation
One example: the government decides to ration butter to 50 grams per person and month. The rest of the (constant) production will go to the military. Even worse: they decide that production of vodka for private consumption will stop and the factories will instead produce molotow coctails and disinfection for medical use. In game terms IC is used for supply instead of CG. Even if the effect is not immediate in terms of less butter in the stores or less bottles in your drink cabinet at home, the price of available butter and vodka would skyrocket (if there are no price control laws) or whatever is available would be saved and not be sold at all. People would instantly not be very happy (=dissent). Why? Because you can read about it in the papers, hear it on the BBC radio news etc. When this happens for item after item (IC to CG is under what is needed) as more and more of goods is decided to be allocated to the war effort, people will start to react to rumors about the next shortage weather true or not. Dissent is therefore not only related to actual shortages.
Many products, however, are also the exact same stuff as CG but are allocated to the military. This goes for small items like chocolate bars, shaving cream, soap, toilet paper, razor blades, cigarettes and kerosene lamps
as well as for the daily usage of 7.821 lbs of construction materials (11.9 lb in Pacific) in a US infantry division (from "US Army Handbook 1939-1945" by George Forty). An early WW2 (German) infantry division would include 5 000 horses – and that reduces “CG allocated to recreational horseback riding” quite dramatically when the horses are drafted for production of Inf brigades. I would argue that even the dozen or so chaplains in each produced Inf division allocates IC from CG to production since the civilian possibility to go to church is lowered (or you have add capacity using retired chaplains with a stutter and weak bladder– and that might make everyone irritated = create dissent).
2) Strategic warfare and CG stockpile
Apart from simulating that you get annoyed because your house-maid is now working in an ammunition factory so you have to clean your own house (less IC to CG, more to supplies) the game does simulate the effect on the people of strategic warfare. The effect of targeting convoys and strategic bombing of IC is
NOT only to lose IC and some supplies for the troops. You get strategic warfare effects as well (due to the fact that people are not stupid and hear / read about what happens and understand the effects).
To me this is a better way to simulate this than a CG stockpile, especially since so much of the “peace demand of CG” is things that can’t be stored. A few examples: movie and theater performances, restaurant visits, doctors appointments (the doctor is drafted), the football season is cancelled and so are the ice-hockey championships, even if the paint for repainting your house is in store the actual painter who would perform the work is not, neither is the carpenter, massage therapist, caterer, etc.
I would also argue that one of the CG effects is less spare time when “Rosie the Riveter” enters into hard work in the factories instead of taking care of home, kids, nails and the hairdo full time. To put it short: if there is no time or resources for parties there can be no tabloids gossiping about what happened at those parties, and no one has the leisure time to read tabloids anyway. That is also a basis for tired and/or angry citicens = dissent
One source on Women Workers in World War II
3) Production and Business and logic
Let me illustrate why I think a separation if CG and other IC is illogical:
CLOTHES.
If the "textile industry IC" is allocated to producing uniforms and bandages (supplies in game terms) the output can be standardized, logistics streamlined and a stockpile created of winter gear, summer gear, different sizes etc.
If the same textile industry IC is allowed to cater to private customers it will be (it was in the 1930s and 1940s) mainly local business where local tailors and small manufacturers make smaller batches of many, many designs. To have a (large) stock of clothes is something every businessman avoids. It is bad business. The fashion changes, perhaps it will be the wrong color or shape next year. Perhaps people want different materials. Perhaps moths will eat it. It costs money to store things even if the rest is no problem.
Even if you apply some rational production of civilian clothes and stockpiling of it such as the British "Utility Suit" and American "Victory Suit", the customers experience is less and will to grumbling (dissent in game terms). In this particular case they were both made of wool-synthetic blend yarns, without pleats, cuffs, sleeve buttons or patch pockets; jackets were shorter, trousers were narrower, and double-breasted suits were made without vests. A good base for dissent if you ask me!
(i.e. an example of lowered CG output not in volume but in quality)
It was actually the lessons learnt developing methods of mass producing uniforms (such as sizing standards) that after WW2 carried over into the ready to wear “haute coture” industry and enabled manufacturers to produce quality goods speedily, moderately priced, and within acceptable profitmargins. This, coupled with increased world wide logistic ability, enabled modern day giants like H&M to be founded shortly after WW2 (GAP and Zara even later as free trade grew)
4) IC = network of manufacturers, subcontractors and other suppliers
I think you fail to see the production process or “manufacturing plant” as a network of many parts and not one local entity. A German Panzer V, or any other major product used in the war, consisted of many, many, many parts. These parts are not (for most part) made in dedicated Panzer factories unable to make other items that can be used as CG. The optics could just as well be used for civilian bird watching or hobby astronomy, the engines in civilian boat motors, the radio componens for listening to music in the living room, the capacity in the steel plants could produce raw material for car chassis or nice cruise ships instead of armor plates. The welding equipment supplier might sell to a producer of steel boats instead of Panzers. The hydraulic components could be used to any number of civilian needs, etc.
And again, many end products like motorcycles (or regular muscle powered bikes), skis, cars & trucks, boots, gloves, medicines, mail transport capacity, etc can either be used for civilian CG needs instead of being painted army grey/green and used either to equip (=produce) a new division or as supplies to the troops.
Conclusion
It is not the goods themselves but the context and subsequent use that many times defines if item X is Consumer Goods, used in Production of new units or used as Supplies.
Therefore the current system is a fair simulation. Far from perfect but still good enough.