Joediplomat

Economy Tips

29 posts in this topic

It has been repeated so many times already that still at this point of game development, its best not to create any public/ state owned companies to lower unemployment and boost your economy. Rather, the opposite has been established, if you create a company owned by the state your economy will suffer for a time, and depending on the company it could take forever for you to make your money back. My tip to everyone out there is:

 

If you were like me and created some state owned companies at the start of the game, (as soon as you created your nation), go to your companies tab and sell off all your state owned companies. As stated over and over again, auto found is better than building a company on your own because auto found costs you nothing. NO employee wages or start up costs, etc. By selling off your state owned companies I have finally realized your net income will boost by millions. My net income jumped from 42-43 million to 65+ million. Not to mention of all the money you receive for the actual sale of the company. A good last resort to make money if you are in extreme dire need of monetary funds. While selling off so many state companies is boosting your economy because you no longer have to pay employee wages, your unemployment should probably sky rocket. Normally this would be a bad thing, however, with auto found as you sell companies, the private sector will be hiring those former state employees to work in automatically founded Private companies, boosting your economy a bit more.
Beware though, that it has also been said that depending on the laws you pass, your auto found cap (the unemployment rate at which companies will auto found) may rise or fall, thus requiring higher or lower unemployment before private companies are created. I think my auto found cap is somewhere close to 16-17% unemployment.

 

So unless you want a quick fix to the unemployment problem in your nation, its best to leave that percent alone until private companies start on their own. And its also a good idea if you sell any state owned companies you currently own. It puts money in your pocket and generates more economic growth. Don't believe me test it. I tested it on my gas stations, that don't generate much income anyway, and my net income jumped like 2 million, so I then tried something a bit more expensive and it did the same. That's how I decided to sell off all my state companies and why I decided to post this tip.

 

 

[Also if anyone has any other tips related or wishes to correct me if I am wrong please do so. I won't lie, I still have lots to learn, and anything new or extra would be helpful to myself as well.]

 

I hope this tip makes sense. I suppose if it doesn't I will be seeing lots of replies over the next few hours...

Edited by Joediplomat

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Correct - creating state owned companies, as far as I know, actually will never pay off in-game with the current mechanics.

You basically pay the wages for employees in state-owned companies twice, there's a topic about it here:

http://forum.project-terra.com/index.php?/topic/9798-state-owned-companies/

That means even though there's a listed "profit" at the companies, the extra wages you pay are pretty much bound to make it a deficit.

 

Another tip to maximize the state income is to set personal tax rate to 45% and corporate tax rate to 100%. Some people have written setting it to 0% is best if your unemployment reaches the threshold for autofound, from my experience, companies have founded even with it kept at 100%, although I don't know if there'd be any advantage if it had been 0% instead.

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I founded a lot of companies myself before I found out how useless they are. I want to sell them, but I don't know where to go. I don't see any option for selling them under the Company tab.

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Yes as Jester said, you put a minus (-) next to the number of how many companies you want to sell.

 

Also there is no  "sell companies" tab. To do so, go to "Found Company"  select the one you want from the menu and then enter the negative number. When you click on "found", it will sell that many of that selected company.

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I finally saw a post on how to get rid of buildings and public companies and, as a result, managed to get rid of a huge number of state employees.  However, I now have a slight discrepancy.

I have the following in my 'Services' page

State Employees: 4,520 Daily Wages Cost: £97,140,000.00

 

and this in my 'Treasury' page

State Employees: 24,620 Average State Employee Wages: £209.80 Total State Employee Wages: £5,165,347.69

 

Will this work itself out at some point when the time/date changes?

 

The link to my nation is: http://project-terra.com/Nation/View/Erollston - just in case that's needed.

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Not all state employees are employed in the service sector. Some of them are engaged in resource extraction and manufacturing, and some are employed by public companies.

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Grillick is right, keep in mind you cant totally get rid of state employees. You also employ people to be teachers, academics, etc from the services. But by not starting state companies you can drastically reduce how much your nation pays in state employee wages. even if you pay 5 million in state employee wages from your services and resource tabs, that is nothing compared to the nearly 30 million your paying by having state companies.

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Oh, also the "Daily Wages Cost" from the Services section is clearly an error, but the number doesn't appear to be used in any calculations, so I wouldn't consider it a material error.

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Ok, thanks for the responses guys.  On a side note, I thought I'd replace my coal plants with gas ones, only to discover that when I sold my coal plants I didn't receive anything back for them unlike other buildings.  I was banking on getting at least half of the money back to fund the building of the new plants.  Instead, having dismantled them, I had to spend all my cash building new coal plants as it tanked my economy and made everybody a bit upset, presumably as they couldn't charge their tablets and phones!  Is that an error, or are you supposed to receive nothing back for power plants?

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Ok, thanks for the responses guys.  On a side note, I thought I'd replace my coal plants with gas ones, only to discover that when I sold my coal plants I didn't receive anything back for them unlike other buildings.  I was banking on getting at least half of the money back to fund the building of the new plants.  Instead, having dismantled them, I had to spend all my cash building new coal plants as it tanked my economy and made everybody a bit upset, presumably as they couldn't charge their tablets and phones!  Is that an error, or are you supposed to receive nothing back for power plants?

 

why would you get rid of your coal plants entirely, considering that that's your energy resource?  i mean, it's mine too, so i understand the limitations in terms of capacity, but the only cost to you in terms of resources is the one-time cost for each refinery and extractor...switching out coal entirely for gas means that you have to buy all your fuel on the market until trading is up and running--which could get very expensive, especially as your nation grows and your energy demands increase...

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Where can I adjust the auto-found threshold for companies?

 

What exactly are you asking? There's no setting of which I'm aware to adjust, otherwise I would fix my real estate deficiency. Companies are auto funded when your unemployment reaches a certain level, usually around 15%. This can be manipulated to an extent through laws.

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Its preset by the game currently, but we adjust it by passing laws that effect our unemployment stats, etc.

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Back to topic,my tip(I didn't heard anyone mentioning it but probably it's common)is that I build lots and lots of construction refineries,and some extractors to support them.They get me about 70 million profit,and that when brick sells cheapest.If I had got lumber,then the figure would be more than Double.I have like 30+ extractors and refineries for construction resources,just enough of food and energy for logistics!but refineries are costly,like 45 million each at my point,but worth it.

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Back to topic,my tip(I didn't heard anyone mentioning it but probably it's common)is that I build lots and lots of construction refineries,and some extractors to support them.They get me about 70 million profit,and that when brick sells cheapest.If I had got lumber,then the figure would be more than Double.I have like 30+ extractors and refineries for construction resources,just enough of food and energy for logistics!but refineries are costly,like 45 million each at my point,but worth it.

 

Speaking of which, methinks the nations blessed with said resources need to form an organization: The Brotherhood of Refiners In Clay Society, or simply BRICS. It seems our materials are selling for less than half of comparable materials which means we are producing more than lumber and concrete combined, or we're getting the screws.

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We need to agree on some strategy,like not selling our resources to buy offers

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Speaking of which, methinks the nations blessed with said resources need to form an organization: The Brotherhood of Refiners In Clay Society, or simply BRICS.

 

I don't fit the category, but you win with that name :laugh:

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We need to agree on some strategy,like not selling our resources to buy offers

 

Sounds like a plan. I will refrain from petty offers and sell at comparable prices, otherwise I will simply use them for future infrastructure; this goes for clay as well. Perhaps a new thread is needed.

 

I don't fit the category, but you win with that name :laugh:

 

A-thank you.

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My tip is don't have many extractors,you should have as much as you need to refine,and for infrastructure logistics.

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my tip-build as many as you can, and warehouses too. when brick becomes reasonably priced again, sell off keeping it at approx 20k? maybe more, idk.

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as long as they are producing, they are making money. just a lower ROI than when you bought them. right now when i bought my most recent one, i think my calculated ROI was approx 20 days. and i make a lot of brick. price halves? 40 days ROI. still better than building public companies, or cities at the rate im going.

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