User:DeficitSpender/Sandbox5: Difference between revisions
Fiscal Crisis :)
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==Economic Warnings==
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"
▲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 fiscal crisis, these are:
|+
!Negative Real Growth
!Inflation Critical
!Extremely High Deficit
!Critical Debt
!Bloated Reserves
|-
|[[File:TNO Economy Warning Negative Real Growth.png|center|link=]]
|[[File:TNO Economy Warning Inflation Critical.png|center|link=]]
|[[File:TNO Economy Warning Extremely High Deficit.png|center|link=]]
|[[File:TNO Economy Warning Critical Debt.png|center|link=]]
|[[File:TNO Economy Warning Bloated Reserves.png|center|link=]]
|-
|Activates when {{color|palegreen|Real GDP Growth}} is lower than {{color|yellow|0%}}
|Activates when {{color|lightcoral|Inflation}} is above {{color|yellow|10%}}
|Activates when {{color|lightcoral|Deficit}} is more than {{color|yellow|10%}} the national GDP
|Activates when {{color|lightcoral|National Debt}} is more than {{color|yellow|10%}} of national GDP
|Activates when {{color|dodgerblue|National Reserves}} is more than {{color|yellow|10%}} of national GDP
|-
|}
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.
The longer a fiscal crisis persists, the worse its effects become for the country's economy, as public services collapse, industries shut down and banks are subjected to heavy pressure by panicked investors and desperate families trying to salvage their meagre savings. Eventually, not even the government itself is safe from fiscal crises: no matter how harsh the repression, or persuasive the propaganda, soon the people will demand swift action - and woe betide the leader who fails to address it...
===[[File:TNO Economy Warning FISCAL CRISIS.png|left|link=]]{{color|lightcoral|FISCAL CRISIS}}===
In order to recover, a decision category will be unlocked, allowing the player to take several decisions to combat the {{color|lightcoral|fiscal crisis}}. Recovering the economy is no easy feat however and will not be without sacrifices. Only one {{color|yellow|Decision}} can be taken at a time, additionally the {{color|yellow|Negotiate A Debt Repayment Plan With Our Overlord}} Decision requires being part of an [[Spheres|economic sphere]].
{| class="wikitable"
![[File:Decision category generic money.png|30px|link=]]'Tackling the Crisis' Decisions
!Decision Effects
|-
|[[File:Decision generic political action.png|link=]] '''Slash Bureaucratic Expenses'''
|This wil {{color|palegreen|decrease}} our {{color|yellow|administrative expenses}} by {{color|palegreen|60%}} but {{color|lightcoral|cripple our administrative efficiency for a long time}}.<br>Our {{color|yellow|Administrative Efficiency}} Societal Development will begin to {{color|lightcoral|rapidly worsen}}.
|-
|[[File:Decision generic seizure.png|link=]] '''Enact Sweeping Privatization Programs'''
|This will {{color|lightcoral|harm our stability and our income}}, but will {{color|palegreen|grant us some quickly needed cash}}.<br>This will {{color|palegreen|increase}} our {{color|dodgerblue|Liquid Reserves}} by {{color|palegreen|20.00%}} of our GDP, totalling {{color|yellow|VARIABLE}}.
|-
|[[File:Decision generic political discourse.png|link=]] '''Negotiate Decreased Payments With Our Creditors'''
|{{color|lightcoral|We will decrease our interest rate by 60% in exchange of 5% if inflation}}.
|-
|[[File:Decision generic money.png|link=]] '''Increase Money Supply'''
|Our {{color|lightcoral|National Debt}} wil {{color|palegreen|decrease}} by {{color|yellow|VARIABLE}}.<br>Our {{color|firebrick|Inflation}} will {{color|lightcoral|increase}} by {{color|yellow|3.00%}}.
|-
|[[File:Decision generic shake hands.png|link=]] '''Negotiate A Debt Repayment Plan With Our Overlord'''
|Our overlord will {{color|palegreen|repay}} some of our {{color|lightcoral|debt}}, in exchange of {{color|lightcoral|some of our revenue}}.<br>Our {{color|lightcoral|National Debt}} will {{color|palegreen|decrease}} by {{color|yellow|VARIABLE}}.
|-
|[[File:Decision generic document.png|link=]] '''Issue Emergency Public Bonds'''
|Our {{color|lightcoral|National Debt}} will {{color|palegreen|decrease}} by {{color|yellow|VARIABLE}}.
|-
|[[File:Decision generic break treaty.png|link=]] '''Cut State Programs'''
|{{color|lightcoral|We will temporarily decrease our state expenses at the cost of economic growth}}.<br>Our {{color|darkgreen|GDP growth}} will {{color|lightcoral|decrease}} by {{color|yellow|3.00%}}.
|-
|[[File:Decision generic research decrease.png|link=]]'''Slash Research Fundings'''
|We will {{color|lightcoral|greatly}} decrease how much is spent on {{color|yellow|research}}, at the cost of {{color|lightcoral|severely slowing down future research efforts}}.
|-
|[[File:Decision generic point reversed.png|link=]] '''Buy Back Some Goodwill'''
|We will spend {{color|yellow|VARIABLE}}. This value will be added to our {{color|lightcoral|National Debt}}.<br>Our {{color|lightcoral|National Debt}} will {{color|palegreen|decrease}} by {{color|yellow|VARIABLE}}.<br>Our {{color|yellow|Credit Rating}} will be {{color|palegreen|raised}}.
|-
|[[File:Decision generic military hat.png|link=]] '''Cut Military Spending'''
|{{color|lightcoral|We will not be able to finance the army or navy, and will see our manpower crater}}, in exchange for our {{color|yellow|military expenses}} being reduced by {{color|palegreen|80%}}.
|-
|}
==Credit Rating==
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