How to Increase Income
Several things can affect profitability:
Lack of resources going to factory = factory cant function, get resources
Resources too expensive for factory = factory does’nt make profit, employees get fired or leave, get more resources
Lack of qualified people to work in factories = factories less efficent so make a loss. build universities or pick a production method that uses less qualified persons, failing that, wait or try and bring in migration
Bad infrastructure or market access= less resources go into state so less efficent production. build railways or ports.
Generally speaking the entire economy is circular, so by building one thing to fix another you end up in a deficit for something else. This can be averted by certain research techs that improves resource extraction, having a diverse national market of many states or focusing on one particular area and importing deficits.
One thing t look out for is joining a customs union as a smaller nation; you’re good can be completely overwhelmed by cheaper made version from your customs overlord, so sometimes it’s best to check to see what a customs overlord has before joining the customs union, or joining early before the surplus of good has too much of an impact.
Here’s other things that can affect income:
Upset parties: some upset political parties will give you massive income penalties, like in some cases the army party of some nations literally adds 30% cost to army units upkeep etc. in those cases you may need to raise wages or pass laws to keep them happy
Another reason could be subsidies. If you subsidise building these may also bankrupt you, only subsidise key industry like railways, ports and some military infrastructure, even then worse case scenario cut costs there as well
Welfare: institutions such as the poor law or old ages pensions are extremely expensive, you may need to cut welfare, education, colonial investment and so on.
Government wages/ goods: having too many government buildings can bankrupt you due to paper costs and wages. Either lower wages or reduce the number of government buildings you have.
Having too many construction buildings or not having the goods to meet construction demands can also cripple you, so either pick a cheaper construction level or reduce the level of your construction
Reparations from war: losing wars can give very expensive reparation taxes as well.
Way to fix income:
- 1) Slash military spending and reduce army size, also navy, failing that pick cheaper military levels (going from skirmishes to line infantry for example) for army or navy units, or even make the conscription centre military levels dirt cheap.
- 2) Slash government spending, cut down on government buildings and wages to the nub until you have only a little bureaucratic power left.
- 3) Keep political parties happy, pass laws that improve the political system.
- 4) Slash welfare spending, and slash the government buildings to boot with the excess bureaucracy.
- 5) If really desperate, start a war and force the opposing side to.pay reparations or make the, join your market. Recessions are a thing in this game and surplus goods can drive down wages, you will need to at some stage either join a market and sell your goods (hopefully not getting reverse saturated in the process) or force your goods onto a poor unsuspecting nation via forcing them into your market.
- 6) Change taxation law, after some time older versions of taxation (consumption, land tax etc) become inefficient as your population changes, eventually you may want to go down the per capita taxation system, you can check which tax law gives you better income via the law screen and mousing over each tax law.
- 7) Reduce construction via either reducing construction levels or deleting construction slots.
- 8) Close down universities.