User:DeficitSpender/Sandbox5: Difference between revisions

The '''Economy''' in TNO is a mostly unique and very in depth in-game mechanic which allows players to manage their nation's inflation, trade, expenditures, revenues, debt, allocation of production units and much more. TNO's economy mechanic has existed within its current state since the [[Toolbox Theory (update)|Toolbox Theory]] update. All of the economy in TNO is calculated in measures of 1960 USD, even if, of course, the world doesn't only use this currency.

 

[[File:TNO Economy GDP.png|220px|right|link=]]

The {{color|palegreen|Gross Domestic Product}}, or {{color|yellow|GDP}}, mechanic includes two functions, the main{{icon|usdgreen}}{{color|palegreen|GDP mechanic}} and {{icon|gdpgrowth}}{{color|palegreen|GDP Growth}}. The {{color|palegreen|GDP Growth}} is determined by subtracting {{icon|inflation}}{{color|lightcoral|Inflation}} to the {{icon|gdpgrowth}}{{color|palegreen|Nominal GDP Growth}}. It greatly affects a nation's economy by expanding your states {{color|yellow|GDP}}.

 

A country's industrial potential, based on its {{color|yellow|GDP}}, is represented in the form of {{icon|produnit}}{{color|palegreen|Production Units}}. These units can be allocated freely between {{icon|civ}}{{color|lightcoral|Civilian Factories}}, {{icon|mil}}{{color|palegreen|Military Factories}} and {{icon|toaster}}{{color|cornflowerblue|Consumer Goods}}. The number of assignable units is limited by the nation's production of {{icon|power}}{{color|yellow|Grid Power}}, which is increased by building {{color|yellow|Power Plants}}.

 

{{icon|toaster}}{{color|cornflowerblue|Consumer Goods}} are a resource that can be exchanged on the {{color|yellow|Trade}} tab. Each month, the civlian populace will demand a certain amount of these goods. The player must satisfy their demands via a combination of the country's own products or foreign {{color|yellow|imports}}.

 

{{color|yellow|Grid Power}} is used to power your nation's economy, and is produced by {{color|yellow|Power Plant}} buildings. {{icon|power}}{{color|yellow|Grid Power}} acts as a cap on the number of {{icon|produnit}}{{color|palegreen|Production Units}} which can be assigned. Should the number of {{icon|produnit}}{{color|palegreen|Production Units}} exceed {{icon|power}}{{color|yellow|Grid Power}}, the {{icon|produnit}}{{color|palegreen|Production Units}} wille simply become unused and will not contribute to the national econonmy.

 

[[File:TNO Economy Inflation.png|220px|right|link=]]

{{icon|inflation}}{{color|lightcoral|Inflation}} is considered one of the most annoying economic features in TNO, since there are not many ways to relieve the effects of {{color|lightcoral|inflation}} without damaging your economy in the process. One option is in the {{color|lightcoral|inflation}} subsection, the {{color|yellow|Central Bank Policies}} slide bar, which gives you multiple policies you can enact to guide the economy in a certain direction. The four {{color|yellow|Central Bank Policies}} are:

Should {{color|yellow|Central Bank Policies}} not be enough, the player use the {{color|firebrick|Money Creation}} slider. {{color|firebrick|Money Creation}} allows the player to print money, greatly inflating the economy but also allowing them to dodge potentially dangerous deficits through giving them extra funds. Due to the great risks of money printing, it is only enabled when having a {{icon|usdred}}{{color|lightcoral|Deficit}}. {{color|firebrick|Money Creation}} scales from {{color|yellow|0%}} to {{color|yellow|100%}}, with {{color|yellow|100%}} covering the entirety of the country's {{color|lightcoral|deficit}} but drastically increasing {{icon|inflation}}{{color|lightcoral|inflation}}.

 

[[File:TNO Economy National Debt.png|220px|right|link=]]

The {{color|lightcoral|National Debt}} is another mechanic of the Economy in TNO. It has a ceiling determined by one's [[Credit Rating|credit rating]]. It reduces when the budget is in{{icon|usdgreen}}{{color|palegreen|surplus}} but worsens if the budget is in{{icon|usdred}}{{color|lightcoral|deficit}}. {{color|lightcoral|Debt}} is paid over time according to the {{color|yellow|Interest Rate}}. The {{color|yellow|Interest Rate}} multiplied by the {{color|lightcoral|National Debt}} is added to {{color|lightcoral|Expenditures}} as {{color|orange|Debt Servicing}} and is paid monthly.

 

The {{color|dodgerblue|National Reserves}} gives the player some extra versatility in the economy, such as through {{color|yellow|paying off their}} {{color|lightcoral|debts}} {{color|yellow|or}} {{color|palegreen|investing}} {{color|yellow|it}}. Reserves are gained through National Focuses, Events or by having a{{icon|usdgreen}}{{color|palegreen|surplus}}. However, reserves should be spent whenever it is possible, since {{color|lightcoral|holding on to them will cause the GDP growth to stagnate}}. By default, due to the {{color|yellow|Auto Payment}} function, {{color|dodgerblue|Reserves}} are automatically used to pay off {{color|lightcoral|National Debt}} by the end of the month.

 

[[File:TNO USA Starting Budget.png|thumb|350px|link=]]

{{color|lightcoral|Expenditures}} are divided into 4 sections:

 

{{icon|purplebox}} {{color|plum|Other Costs}}, which is miscellaneous expenditures.

 

{{color|palegreen|Revenue}} is divided into into 4 sections:

 

{{icon|indigobox}} {{color|mediumpurple|Other Revenue}}, which is miscellaneous revenue.

 

An economic {{icon|usdgreen}}{{color|palegreen|Surplus}} is caused if {{color|yellow|spending}} is {{color|palegreen|less than national revenue}}, and will lead to a {{color|lightcoral|decrease}} in the {{icon|gdpgrowth}}{{color|gainsboro|nominal GDP Growth}} as long as it continues. However, the country will gain extra {{color|dodgerblue|reserves}} and avoid the {{icon|politicalpower}}{{color|yellow|political power}} cost from a {{color|lightcoral|deficit}}. A {{color|palegreen|surplus}} can save the economy from expanding debts, but {{color|lightcoral|harms the economic growth}}.

 

An economic {{icon|usdred}}{{color|lightcoral|Deficit}} is caused if {{color|yellow|spending}} is {{color|lightcoral|more than national revenue}}, and will lead to an {{color|palegreen|increase}} in the {{icon|gdpgrowth}}{{color|gainsboro|nominal GDP Growth}} as long as it continues. However, debt will also increase by the monthly deficit every month, along with a cost in {{icon|politicalpower}}{{color|yellow|political power}}. A {{color|lightcoral|deficit}} is often superior to a {{color|palegreen|surplus}}, allowing the country to expand their economy {{color|yellow|greatly}}, but a {{color|lightcoral|high deficit}} can also lead to {{color|darkred|extreme debt}}.

 

War Taxes can be enacted in times of need, when a war takes too much of a toll on the national economy, and when the cost of enacting it are deemed worth the economic boost. It requires the country to be at war, which makes it especially useful for countries which find themselves in conflict often, sending volunteers to [[Cold_War#Proxy_Conflicts|Global Conflicts]] doesn't count. It costs {{icon|politicalpower}}{{color|yellow|50 Political Power}} to enact.

 

{{color|gainsboro|(Temp)}} {{color|yellow|Draft Exemptions}} {{color|gainsboro|policy effectiveness}} {{color|lightcoral|-10.00%}}

 

There exists a total of five economic warnings to warn the player about their bad handling of a country's economy that could potentially lead to a {{color|lightcoral|fiscal crisis}}, these are:

{| class="wikitable"

Should the economy enter a downward spiral, usually caused by high deficit and national debt, a {{color|lightcoral|Fiscal Crisis}} will trigger. A {{color|lightcoral|fiscal crisis}} will affect the economy in various ways, through a reduction of {{icon|gdpgrowth}}{{color|palegreen|Nominal GDP Growth}}, {{icon|stability}}{{color|yellow|Stability}}, {{icon|warsupport}}{{color|yellow|War Support}}, {{icon|politicalpower}}{{color|yellow|Political Power}}, army capabilites and factory output.

 

A fiscal crisis is the answer of the wider economic world when a country's spending agenda is perceived as too reckless to be even remotely sustainable. While sometimes caused by world-wide geo-political or geo-economic factors, some of which may be entirely out of the country's possibility to influence or protect against, the end result is the same: privates refuse to fuel public spending via acquisition of public bonds, deeming them excessively risky to buy, even at high interest rates, and as such, the country suddenly finds itself unable to pay for even the most basic services such as the armed forces, law enforcement and strategic infrastructure.

 

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|}

 

==Credit Rating==