Optimal Policies

Discuss the game here, strategy, opinions on policies, and tech support issues.
Framistan
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Postby Framistan » Mon Dec 03, 2007 8:46 pm

Rissen wrote:A privately owned economy will always be in opposition to happiness and security, for the simple fact that wealth becomes concentrated in the hands of a small minority, who then use the resulting power to trample all over other people's rights.


Powerfull people tend to do that no matter how they aquired their power. Private ownership, if protected by the state and somewhat equally distributed, seems to curb the worst forms of opression, be it from the government or from vulture capitalists. Respect for economic rights seem to go hand in hand with respect for human rights, which is the important point here. I see capitalism as the ultimate recognition of the individual's right to use his/her own potential, and to benefit from his/her own efforts, and the ultimate recognition of human potential and capacity in all its forms.
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Postby Rissen » Mon Dec 03, 2007 9:00 pm

I have no problems with the theory behind capitalism. What I do have problems with is that in practice, for example, rich parents can afford to buy their children everything that they desire, and ensure that they get the very best education. This is clearly against the principles of capitalism but it is an inevitable result of the same.
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Postby cliffski » Tue Dec 04, 2007 9:10 am

You can have a capitalist incentives system with a safety net for the poor, or even mass state intervention which ensures a level playing field, through very high inheritance taxes and strong support for state schooling. In theory this means each new generation has the same chances as everyone else, and yet you are well rewarded for hard work and innovation.
Capitalism does not have to be an all or nothing system. You could happily have a very capitalist society with a very good state-owned health system. Some people would suggest that a state-run system is always less efficient and more bureaucratic than a privately run one, and I would have a lot of sympathy with that. The question is, is it still desirable to provide a universal service with state ownership despite this, or is the new labour method of 'public-private-partnerships' the way to do it?
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Postby Rissen » Tue Dec 04, 2007 1:04 pm

I'll have to explain my personal ideology at some point because it gets quite complicated. For now, I'll say that a mixed economy is inherently unstable, because markets only work if companies can make a profit, and those profits will be used to remove barriers to greater profits (i.e. left-leaning politics).

On efficiency, there may be a slight increase in efficiency, when the conditions are right, but that efficiency benefits the shareholders far more than the average consumer.

I suppose I can explain a little...

A firm has effects on four groups; the consumers, the workers, the shareholders and the country itself. In a capitalist or semi-capitalist system, the firm has to ensure that the consumers, the workers and the country get just enough to keep them happy, without reducing profits. However, the ones they really care about are the shareholders. I can explain with a simple diagram:

Image

In this we can see that the net benefit flows up to the shareholder. If the firm does not get a net benefit overall from the workers, the consumers and the country, then it won't be able to reward its shareholders and they will do whatever shareholders do when they get angry.

What I propose is simply to make the consumers, the workers and the state all joint shareholders in firms. From the diagram you can see that this would result in consumers, workers and the country all receiving as much benefit from the firm as they gave in the first place.
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Re: Optimal Policies

Postby Bukharin » Wed Dec 19, 2007 10:22 pm

Haha, and I like to take the best of both worlds, to eat my cake and bake it as well, or whatever... So, anyhow, for the same reason that it makes perfect sense that you can have patriots of any political belief, I believe that the rights of individuals should be protected above all else. As for the problem of property, it is up to every citizen who cares to manage it, and every citizen who cares to defend it, hahahaha. :twisted:

Anyway, I do not know how this got to be such a conversation in my abscence, but I like it. 8)
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Re: Optimal Policies

Postby morjarias » Tue Jan 08, 2008 1:11 am

Hi guys... that's an interesting question...

I usually go about in the following manner... for those who know their economics, I prefer supply-side policy whilst remembering to add the human touch!!
I start off by adding Technology development grant, rural development grant, stem cell research, generous university grants, tax shelters => kicks start your economy bringing in loads of revenue ... reducing the rate of various taxes would increase participation biting into the underground economy & save govt. resources
I remove Bus lanes, allow road expansion, subsidise bus transport, have zero import tariffs, reduce fuel duty =>
I add childcare, reduce maternity leave, strengthen laws against alcohol (only low strength beer) => increases productivity
I bring in strong pollution controls (major fines), tax car rather than fuel
I believe in strong spy network and at least a well-trained military
I fully fund the community police officers, improve prison cells and increase funding for the Police backed by strong gun control rules
I like the widespread use of trial by jury
With a falling debt and much improved finances, I turn my attention to free school meals, free eyesight checkups, Legal aid, disability benefit, child benefit and international aid for development....
Once poverty and unemployment are removed, you could start to remove unemployment benefits and even state housing
... bring in property tax, aviation tax, inheritance tax, etc always remembering however to keep them at Low/ Fair level to reduce the negative impact on the economy...

Rule well and wish you good luck!!
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Re: Optimal Policies

Postby Rissen » Thu Jan 17, 2008 11:02 pm

Yeah, I developed a strategy similar to that; starting of by boosting growth with pro-business policies, and then tax the hell out of them when my GDP is up high.
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Re: Optimal Policies

Postby Lynohara » Sun Apr 05, 2009 8:03 pm

This is what I usually do (successfully):

Import Tariffs-Maximum
Corporate Tax: get rid of it altogether! The rise in GDP pays off your income losses.
Income Tax - depends. At some point (after the first election) I cut it to eliminate zax evasion, then raise to average
Sales Tax - High. Or very high, if necessary.
Pensions- none at all! Retireds like me by free bus passes. Poverty is killed by eye tests and school meals.
Recycling - Not necessary, but cheap. Not important at all.
Car Emission Limits - Just for a short time, to get rid of asthma. After that, away with it.
Internet Tax - Never! Bad for GDP!
Airline Tax - Like Internet tax. Never!!!
Technology Grants- Maximum!!! I cannot stress this enough!
Small Business Grants - Too expensive. Getting rid of corporation tax does it better.
Toll Roads - Maximum!
Car Tax - Rather high.
Petrol Tax - High, depends on the situation.
Alcohol - Never paid attention to it.
Alcohol Tax - In the first term to balance the budget: high, afterwards none at all.
Cigarette Tax - As above.
Legalize Prostitution - Always make the religious like you. This is a no-go.
Death Penalty - Get rid of crime by a huge police force instead.
Gated Communities - Maximum. Without poverty, this is about the only way to make the wealthy like you.
Sattelite Road Monitoring - Not necessary. It does not bring much money, and reducing the car usage can be done better.
Community policing - Maximum. The best type of policing!
CCTV cameras - In extreme cases for a short time.
ID cards - No.
Police force: as high as the budget allows it
Prisons: The same.
Legal aid: max
Jury trial: universal.
Inheritance Tax - No.
Agricultural Grants - Rural development keeps farmers happy. This one is too expensive.
Pollution controls: Bad for GDP => NO!!! Car emission limits instead.
Rural Development: Maximum!
Clean Energy Subsidies: Maximum!
Plastic Bag Tax: No.
Labour Laws: None.
Organic Farming Subsidies: Not necessary. Cut on spending!
State Housing: None at all! Too expensive. School meals & eye tests instead.
Pensions: None at all!
Unemployment Payments: No.
Disability Benefit: No.
Child-Care: Max. Good for productivity, GDP and parents. Inexpensive.
Military Service: Light Defensive.
National Service: Not necessary.
Foreign Aid: Medium.
Free eye test: max
Free school meals: max
Faith school subsidies: as high as the budget allows
School prayers: just in countries with lots of religious people
Stem cell: just in countries without religious people.
Drugs: Never legalize anything!
Streets: existing roads fixed
Bus subsidies: medium
Toll roads: medium
Clean fuel subsidies: max (very important).
State health service: keep it very low, it´s horribly expensive.
Intelligence services: sizeable
University grants: maximum

I think i have got it all. With these policies, you will have a balanced budget, the GDP is soaring to never experienced heights, and you get a solid majority of Capitalists (GDP!), Socialists, Liberals, Religious, Conservative, State employees, Parents (after asthma), Retireds, Commuters, Environmentalists, Poor and Farmers. Additionally, all the problems will be solved and you get Technological advantage, high productivity and (probably) tourism boom. You just have to be aware of the Equality, but with high enough average income, it should not be a huge problem.
Works on the highest difficulty as well, in all the countries (with minor adaptions).
Interestingly, this is a very anti-socialist; fiscally conservative (US), economically liberal (Europe); law-and-order (as well as holy green) agenda.
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Re: Optimal Policies

Postby Lenovo » Wed Aug 12, 2009 6:55 am

Thanks Ed for the uplifting comment. It is good to know that somehow I could be of help although the thread is way old.
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