Rebuilding an Imploded Economy

[Geilinor]

My economy statistic had long possessed among the highest ratings until I chose to abolish business subsidies through an issue. That brought my economy stat to its knees, at "Imploded". I'm now having difficulty registering any improvement. What would be the fastest way to improve it?

[Minoa]

The correct category for this thread is "Got Issues?"

I am aware that selecting Option 1 of NationStates Issue No. 017 is one of the ways to rebuild your economy, but as the economy grows it becomes a bit harder to get it to the top. As a side note, I am working on a Issues database on my wiki that allows players to add their issue results, to help users not make too many mistakes.

[Luna Amore]

The correct category for this thread is "Got Issues?"

It works fine here too.

[The Agnostic Collective]

Since your economy was dismantled by abolishing business subsidies, it's probably safe to assume that your economy was heavily dependent on the Private Sector. So, choose options that favor the private sector such as corporations. It will be a long and arduous task.

[Zhalen]

hi all,

I've been choosing the options for months that benefits business and economy. Yet my "Imploded" econ status has not changed. I keep reading places that it just takes time, but how much time is that exactly? Years, for this game is highly unrealistic and really takes the fun out of it. I feel like I'm wasting my time.

[John Turner]

The correct category for this thread is "Got Issues?"

I am aware that selecting Option 1 of NationStates Issue No. 017 is one of the ways to rebuild your economy, but as the economy grows it becomes a bit harder to get it to the top. As a side note, I am working on a Issues database on my wiki that allows players to add their issue results, to help users not make too many mistakes.

Do you already know about this Charolette? If not, it should help the cause.

[Taigawa]

hi all,

I've been choosing the options for months that benefits business and economy. Yet my "Imploded" econ status has not changed. I keep reading places that it just takes time, but how much time is that exactly? Years, for this game is highly unrealistic and really takes the fun out of it. I feel like I'm wasting my time.

I dealt with that too, caused by the same issue. 3 and a half IRL months later, it has started rising again. All I did was answer issues like normal.

[Neo-Castillia]

Having had a quick look at your nation state I have assessed there are a number of problems with your economy which require the adoption of not only policy changes but fundamental structural changes. You have a rate of tax at 92.5% at you’re your government makes up only 40% of your GDP. If you are not directly reinvesting in your economy then capital cannot reach businesses and your economy is not going to recover from financial collapse. The answer is not as some would have it to cut public expenditure, that will just hurt your economy more because you’ll reduce the contribution of the state to GDP. Drop taxes dramatically in an attempt to encourage consumer spending and strategically increase spending in order to generate demand. Essentially you have to accept that unless you are going to leave it up to market forces to find a new equilibrium then you will have to run a significant budget deficit in order to recover your economy. If you do not heed my advice then your economy may shrink back further or at best you may go between stagnation and limited period of growth.

[Minoa]

The correct category for this thread is "Got Issues?"

I am aware that selecting Option 1 of NationStates Issue No. 017 is one of the ways to rebuild your economy, but as the economy grows it becomes a bit harder to get it to the top. As a side note, I am working on a Issues database on my wiki that allows players to add their issue results, to help users not make too many mistakes.

Do you already know about this Charolette? If not, it should help the cause.

I am already aware of this website: I just picked an issue that would rebuild the economy faster.

[Aenglaland]

I abolished business subsidies too in one of my puppets some time ago, but my economy only dropped to 98, and going back to 100 will be easy. I don't have income tax, and around 95% of my industry is privatized. Before I abolished the subsidies, 35% of the budget was going to the industry. My only current spendings are in law and order (around 18%) and military (around 82%). I made sure the private sector was strong enough to work without subsidies.

I suggest you drop your taxes (even abolish income tax if you want; more money to spend means more revenue to the economy) and restore business subsidies gradually as you cut your taxes. You will eventually reach a point where you can abolish the subsidies again and the harm for your economy won't be that big.