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State Owned Companies

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I've tried creating some state-owned companies, as I expected to earn profits from them, and watched their effects on the budget.

 

No matter what, they appear to have a significantly negative impact on it. The reason I find is that the wages for employees also appear in the budget, while only the much smaller profit appear as the only income source from them in the budget.

 

But wages would normally be considered a part of profit calculation, and thus, in state owned companies in the game, you effectively pay wages twice. This would be comparable to having a spoon factory, and in the state budget, list the profit of the company and the income from selling all the spoons, then mashing that together as what you earn from the company.

 

For this reason, I think either wages for state employees should be removed from the budget, or a complete report of expenses and income for the state companies should be listed. (I'm not suggesting going into details, just total expenses and total income of the company).

 

I apologize if I've missed something here, I created my nation yesterday. :P

 

Besides from that a cool and interesting game.

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I mentioned this previously and was told I was wrong... I agree with you that it appears we're paying wages twice.

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Actually when you create a state owned business you nation must endure what the business does. Creating a business by the state is a great way to lower unemployment, however, it drastically reduces your nations net income. And companies that have large "too good to be true" expected start up incomes take too long to pay your nation back and you just don't make your dollar back and most likely won't see profits anytime soon. Let unemployment rise until your nation auto founds a business that lowers unemployment, raises net income and national profits and costs you nothing in wages and company maintenance.

 

Also it is wise to set your personal tax rates at 40-45% and corporate tax rates to 100% this way all corporate profits are yours and your net income remains pretty high. However, when it comes time for voting you will want to lower them before calling an election. In short, don't create a state business unless you are totally against having high unemployment. But like I said at 15% unemployment your nation will autofound a private company which costs you nothing and you will see immediate profits, and lower unemployment dramatically (for a while). 

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Founding public companies, even without paying double wages, is the worst way to make profit. You need only compare the cost to the ANNUAL profit to see why.

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*Snip*

I don't agree, but that has nothing to do with the problem. The problem I mentioned is that the state pays wages twice in the budget - first wages are subtracted when calculating the profit of a company, and then you pay wages again in the budget shown on the treasury page.

Whether state companies are good or bad and all that is another discussion. No matter what, you shouldn't have to pay wages twice.

 

 

Founding public companies, even without paying double wages, is the worst way to make profit. You need only compare the cost to the ANNUAL profit to see why.

At first I didn't know how time in the game worked, so I thought a game day was a year and that I'd earn the annual profit in a day. That's why I went around to make some, then I investigated the issue deeper. :P

But still, the issue here is that wages are paid twice, and I think that should definitely be fixed.

 

 

I mentioned this previously and was told I was wrong... I agree with you that it appears we're paying wages twice.

Interesting, link please? I'd like to see their explanation for this.

 

Another way to look at it is to turn it around: If we set the tax rate to 100% for private companies, and wages are paid after profits, that implies with a 100% tax rate, people in private companies earn no wages, because we've taken all the profits and they thus have nothing to pay the workers.

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I think I get what you're saying. Let me check into it.

Yay!  

 

 

I don't agree, but that has nothing to do with the problem. The problem I mentioned is that the state pays wages twice in the budget - first wages are subtracted when calculating the profit of a company, and then you pay wages again in the budget shown on the treasury page.

Whether state companies are good or bad and all that is another discussion. No matter what, you shouldn't have to pay wages twice.

This pretty well sums up what's happening.

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Without tweaking any calculations, simply change the column "Total Annual Profit" to "Total Annual Revenue", and "Government Income" to "Government Income (excl. wages)"

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