Massive number of shortages

The shortages are too high.

as a result, many corporatins cannot produce and shortages increase even further.

the situation is even more difficult becasaue many corporations in C3 countries are unable to purchase the products they need and production in C3 countries declines.

The next upgrade, coming Monday, will include a further decline in the cost of government in countries. The decline is achieved by a reduction in the amount of products needed for the army, the education and health systems.

The previous upgrade already reduced the cost and reduced the amount of products used.

We expect that the effect of the previous upgrade will kick in with larger declines, in the coming days, when purchasing will start to decline.

the next upgrade will do the same.

We hope that we have already seen the worst of the shortages.

Thanks, Andy, much appreciated.

Is it shortages in HLW that produce the conditions which lead to this snowballing effect?

I've managed to keep my countries and enterprise running. Common market seems to help, but just manually immediate ordering the extreme shortages was the fix during the worst of it. I've been at 100+% since last thursday. Getting hospitals roads and schools isn't fixed for me, but I don't produce those items. Quick question on that point, if I have a corp which produces those items, and contract full production to my country, would those become stock or functioning facilities?

How about trying?

You should make IPOs to burn money for immediate orders comfortably

We hope that conditions will improve.

we see a change already.
There are some more products in the green.

I've noticed the change on FB. Most my corps are in the green for supplies. Good to see

Andy,

PLEASE increase the number of Low Level Workers and Medium Level Workers, that can promote to Medium Level Workers and High Level Workers each month.

Relying on players regularly demoting educated professionals to Medium Level Workers and High Level Workers, is not a solution. It requires way too much micromanagement from the players.

Increasing promotions doesn't risk large oversupply of Medium Level Workers and High Level Workers, because promotions stop if there are large amounts of unemployed Medium Level Workers or High Level Workers.

The situation isn't getting better on it's own, and it's damaging the game. Please consider this solution.

How about making inflation in the market prices? I believe Andy did not pass a macroeconomics class

spycorp.ill.666 fhj,

Simcountry prices do respond to market shortages and surpluses. However each item has a price cap and floor that keep values resonable.

The reason for the caps is that the Simcountry simulation isn't set up to respond to prices in the way real world economies do.

Mechanisms like substitution, variable production, elastic demand, rapidly responding small scale producers, monetary policy, price driven efficiency and innovation, and so on, are not modelled in Simcountry.

So, when prices rise in Simcountry, demand and supply do not respond. As such, the price caps and floors, are needed to prevent values from rising or falling infinitely.

The cause of the recent economic disruptions in Simcountry, is the lack of high level workers, resulting in production being disrupted across the game economy.

I think small scale producers are the most important element here, an economy built with 39 corporations for example is unreasonable. Speaking of the monetary policy, I think that letting players choose the interest rate for their given loans will make competition possible and C3 countries will drive the demand by choosing optimal loans (high value, low interest).

In order to to decrease shortages regardless of worker availability is to at least increase the difference between the cap and floor of the prices, insolvencies of supply due to insufficient funds will correct the demand more quickly to a near equilibrium situation.

Also, a lot of things need to be changed. For example, personal tax rates and healthcare/education cost control for Population so that we can shape our financial model instead of just playing with the corporate tax rate to increase revenue.

Regardless, how am I supposed to respond for a ~13% rise in financial cost without increasing taxes and decreasing the financial stability of the corporations? I have a lot of tools but I used them all:
- Increasing corporate tax, did that and will not increase beyond 35%.
- Loaning in order to get interest revenue, did that and I will prob be left with only 8% of my cash, loaning 92%.
- Selling my product reserve of natural resources, did that and it is temporary fix.

The only way to get my financials back on track is to *CONTROL* my personal income tax rates and health/education contributions. Otherwise I will lose a lot of money (already lost around $2T) just to keep my head afloat when I am not even in control of my policies.

I almost pay 110% of the price for immediate orders so any shortage of any kind is equal to 110% temporary inflation, which is unreasonable.

I loan out $12.5T and in turn I get $0.7B interest revenue per month for 120 months, summing to $84B. Its as if the interest rate is 0.67%.

spycorp.ill.666 fhj

Please post the name of your country, and the world on which it is based, so that players can look up your country, to be able to advise you on how to stabilise your economy.

Endoma Socialist Rep. in GR

Rapid population decline

spycorp.ill.666 fhj
The loan isn't 12% interest per loan period, it's 12% interest per real life year. 120 ingame months are 20 rl-days so 12%*(20/365)=0.66% approx

And yes, that is rediculous ingame-wise, we realized that years ago.

spycorp.ill.666 fhj,

Your country's financial data is set to secret. So, I can't see what might be causing any financial problems you may be having.

As for population decline. Are you a premium member? Free to Play players, have a population cap. When above the cap, their populations decline until they are below the cap. Last I recall, the cap was 20 million people, however it may have changed since then.

Thanks for informing me Daniel, I made it unsecret.

I am not a premium member, my population is about 32Mil and decreasing 20k/month.

Borgqueen,
I know, but the rate for a real year is not reasonable at all. and 12% is quite low regardless. Loans should be a free market system.

spycorp.ill.666 fhj,

Financially, your nation isn't doing too badly. The main reason you aren't making much money, is because you've publicly listed all your corporations, and have put their profit transfer to 0%.

Generally, 'Profit paid by State Owned Corporations' is the single biggest revenue generator for most countries in Simcountry. By having State Owned Corporations, rather than publicly listing them, you get to keep 100% of the profits. By setting a profit transfer higher than 0%, State owned Corporations will pay some of their profits to you, rather than keeping all the profit in the Corporation.

The population declines are caused by you being a free to play member, the population will eventually stabilise at a lower level. If you want to grow a larger population, you need to become a premium member.

Loans in Simcountry are largely there so that Corporations, Nations, or Enterprises, can borr

My tax rate is 25% now, do I need to hybridize between tax and profit transfer? and if yes, what's the secret?

The main reason for me loaning is not revenue actually (even though a couple billions are nice), but to try and stabilize the market because the market will backstab us more if we didn't make more credit available.

spycorp.ill.666 fhj,

Tax is paid first, as a percentage of profit. Then the after tax profit is split between the Corporation, and it's owner.

For example. If a Corporation makes $1,000M Profit, and the tax rate in the country in which it is based is 30%. Then it will pay $300M in tax to the country. The remaining $700M is the Corporation's after tax profit, which is divided according to the Profit Transfer rate. Let's say Profit Transfer is 60%, then $420M (60% of the $700M after tax profit) will be paid to the owner of the Corporation, and the remaining $280M will stay in the Corporation, as part of it's cash reserves.

As for the Loan Market, it doesn't require player input. If there is ever a shortage of money to fulfill the demand for loans, the Game Master fills the gap.

25% tax and 0 profit transfer? I might invest.

Daniel, I think corporate profits going down from 1B to 280M is a bit bad, I will consider more sensible changes.

Ethelred, some times we had 0 tax actually. We were completely dependent on dividend income.