General question regarding wages (Little Upsilon)

Hi
I'm a newbie and even though I already understood most things about the game I'm still not sure on some of them.

The most important issue regards wages.
In my country I'm trying to lower my wages significantly in order to make production cheap and keep my gouvernment costs low.

My questions are:

1. If all of my companies and my state reduce their wages, does that increase unemployment?

2. Does reducing my wages harm anything? Since there is no private consumption system in the game but the state basically distributes all the needed goods for free to the population there shouldn't be any


thanks in advance

Only thing you really need to watch is that you pay your government people at least 75% of what you pay your state corps (average). If you dont and become a little low on workers you will find your nurses, teachers, military etc quitting to go into industry for the better money and so hosps and schools will close, something you really dont want.

Lower wages in corporations will lower their production a bit, you need to find the trade off between paying more and making more profit, or saving money in wages but selling less. A good starting point is 250 - 300 salaries and mess with it until you're happy. These things take time to take effect, so be patient.

thanks

I started with 200 and lowered it to about 175 already.
I have most of the corporations in my country and all the CEOs have agreed on setting their salaries in accordance with my NWS (national wage standard) policy.

However, It appears that most of my companies are loosing workers (not to other companies but in general)


I also have some problems with getting enough supplies for my corps.
Can you suggest me any good common market?

I rarely use CMs titian. Check your corps are set to automatically buy supplies, using a startegy FOR BUYING of start at 100 and increase by 5 every month. (again this is a figure to mess with, actually I use 95/8), higher you start with the more chance of getting products, but again if you can save 5% thats obviously good.
As for losing workers, do you mean they have shortages or are they just hiring less. Upgrading production effectivity will make corps use less workers which is a good thing. If you are experiencing worker shortages post your country name here and I'll try to see why.

The state is buying the goods that are consumed or otherwise used by the population because you cannot have 50M people place orders on the market.

however, the population is paying for everything the country is buying. There is a very detailed consumption model that depends on the income and it is used to compute how much is consumed of each product.

The quantity is reduced from the stock of the country.

The income of the population is divided between all these products and what they consume is paid back to the state.
part is used for taxes, investment, housing (purchasing of construction services), contributions to health and education etc.

you can see the amounts on the cash report of your country each game month.

The simplified version is:

Higher salaries --> Higher overall revenues, due to the various items mentioned above.

What happens, though, is that those salaries concommitantly reduce corporation profits, generally speaking, due to the increased costs (although production does increase to off-set that partially).

It has been recommended several times by 'Gamemaster' and others to use salaries in the 300 range for good results. From there you can modify salary levels higher or lower to compensate for lower corporation profits or to increase general investments. Basically, the better the corporations perform, the higher you can raise salaries, and vice-versa.

The one caveat, as Crafty mentioned, is to keep Government salaries in line with corporation salaries, and there were values recommended already above, as well.

Bottom line: use 300 salaries, and go from there ;)