CORRECTION: TAX WASTE ALSO DELETES MONEY FROM EXISTENCE - IT TAKES IT FROM THEM BUT DOESN'T END UP REACHING THE GOV. I thought I recorded a segment on this but it seems I might've accidentally left it out. SEE LAST EDIT TOO. Edit: As someone on the discord pointed out, dependent's income is also a source of free money, although this is admittedly a system I haven't taken a close look at and am having trouble verifying that base dependents income is materialized (not just the positive modifier). I was really trying to remember this phenomena while making the vid, but couldn't. (Individually) high prices also destroy value in a sense. It's offset by increasing the net, but when you have high prices this means you have more buy orders than sell orders, so you're not passing the full value from one industry to the other. You don't lose value though if your buy orders are coming from exporting though. The value of the increased net more than offsets this in the resource/agricultural industries, but wouldn't do as well in the manufacturing industries. Thank you to @alexandererhard2516 for pointing this out.

28:14 Minor correction: In Worker Coops, the owners of the buildings aren't just the shopkeepers, instead every worker gets a share. So all pop types that aren't normally owners (machinists, laborers etc) get part of the dividends and still reinvest 0% into the pool.

33:30 same reasoning as when the pice gets over +75%, -75% will result in added value as strange as it may sounds. Those products pruduced at 25% will receive money while nobody has to pay that money to consume it adding net money to the system.

Hey Generalist. Been lurking for a while and love the stuff. One of the things to mention about manipulating supply and demand is the corn laws. Whichever patch made it where you had to get 25%+ price to kick off got me thinking about grain price and how to kick it off since it cant be abused anymore. 1. First step is to make grain as cheap as humanly possible. This is best done by having a large import route and no tarrifs. This is also done by decreasing the price of fish and meat. 2. Do NOT under any circumstances build Food industries. I thought this would help jack demand for grain, but what it does is lessen it by giving a substitute good. 3. Once grain, fish, and meat are cheap, build the hell of your economy to lower peasants. Even sticking to wooden frame construction if needed. 4. Wait until the grain import is a significant portion of your buy orders for grain are imports. 5. Save the game and pull the rug out. Cancel all trade routes for grain, change fishing and meat to the worst PMs and produce only citrus orchards. This should get you over the mark and corn laws kick off. This strat works very well for me in Piedmont. I think it works good for small to medium countries where the land owners are in power anyway. Also works best if you dont have serfdom. This might be a good strat for places in the Americas as well.

The simplest way to state this is: buildings add value by transforming some resources (goods, labor) into goods of higher value. Therefore, if all goods are expensive then the total amount that is added is higher. If goods are expensive, the total amount is lower. This doesn't factor in efficiency, only total output. For example: inputs of 10 creates outputs of 20. If prices double, inputs of 20 creates outputs of 40. Efficiency is still 2:1, but there is now twice as much stuff to inflate that sweet, sweet GDP number.

Prices between 0% and +75% also destroy value (though not as bad as a shortage dcreasing the output of buildings), because a price being above normal means more buy orders than sell orders, conversely prices below 0% mean that more sell orders than buy orders are being created. What's more important imo is the relative prices of output and input goods. For heavy industry buildings with tight relative profit margins like steelworks, expensive iron and coal coupled with cheap steel is a desaster, already at maybe +15% input and -15% output for example. But that's basically just why expanding a profitable (industrial, although later on even agricultural is acceptable) building with (compared to each other) cheap inputs and expensive outputs is never a bad idea.

Cheap prices lower gdp but allow to raise sol and more sol means basically more birth rate and more migration

Planned economy into full War economy is the meta for late game MP. You can literally be on the lowest taxes with no consumer goods + Max barracks to fill up your general limit. General limit is so kneecapping for big countries, Russia has hundred + states but 20 general cap. 100 barracks limit is also weird. Like why are we hard capped from military, economy should be the soft cap.

"it's beneficial to keep constructing, even if the buildings are never going to be employing, because it stimulates the economy" Ah, China IRL :D

What is the rationale for the investment pool transfer malus late game? It seems like it is just a straight nerf.

Thanks for the explanation, Generalist! Could you also do a guide on what is the optimal price of goods mid and late game industrial economy(based of your experience) for each good?

Thanks for explaining the deeper mechanics!

This was a Beast of an instructional video, crammed into 38:50 minutes of no nonsense. With some high octane additions in the background. I've fumbled around stupidly before but playing and watching your video i've finally been able to watch my GDP climb steadily. Now i'm just fumbling. I look forward to whenever/ if you ever try out Anno as i'm sure your insights will be refreshing.

some german guy with a beard told me that it's with labour

This reason is why for big countries National militia or Mass mob is the best. You can double the soldiers you put on the front. Especially good as Usa. 50 odd states means 250 normal brigades without conscription.

Is that spread sheet updated live *per in game week/month or you just got a basic spread. I member Vicky 2 I could keep track off all diplomatic action of all nations updated monthly trough the autosave for my role play lol.

This is why Central Bank policy always targets inflation to be positive not zero. Higher prices make businesses more profitable, and if trickle down economics worked, wage income would also rise. However, in the real world worker wages are not a fixed percent of unit value minus cost of inputs. In the real world worker wages are negotiated separately. Resulting in windfall profits for businesses and workers wages growing slower than inflation. But in Vicki 3 worker's share is tied in, so if prices rise their income rises. It makes a good game. But socialism was birthed in the late 1800's world of cut throat capitalism where workers were oppressed and didn't share equally or at even at all in the value their work created. Vicki 3 gives government levers to rectify the injustice right off the bat in 1936. Education and better jobs mostly. But historically, governments and programs like this didn't appear until the 1900's.

Months of playing missed SO much on my own. ThANK YOU❤

I think now in 1.5 MAPI differences are value lost as well. Like if a steel mill sells at -75 percent locally but the buy price in the whole market is +75 percent, the difference disappears, and impacts both the steel mill and the buildings that have steel as input negatively. Conceptionally this is logistics losses beong simulated (which is why MAPI scales off infrastructure access, and why techs like Zeppelin increase it).

Great stuff! Just one thing that always sound weird when you say "Laissez-Faire", it's "less- ay" not lezz ay ;)

I can never get costs and production down and under control respectively. I almost always go for Japan but have recently tried belgium and others. How many constructon sectors is the right amount. Do I only focus on construction and for how long? Ty

Best Victoria videos

Couldn’t one argue that institutions destroy value? They cost wages and materials, but some of them are only giving political benefits but not actually economic value (Law Enforcement, Home Affairs, Workplace safety). Sure they can mitigate potential problems but that’s kind of difficult to quantify. They are almost a cost of doing business in some way. What are you thoughts on this?

holy marx

I don't get why or how Cooperative Ownership is better than Laissez faire in late game. I enacted it when I already had around 1B gdp and it crippled my investment pool so bad that my balance became untenable (near bankruptcy) and my GDP fell down by 1/5 or so. Many industrial buildings also became unprofitable because of this. I'd be grateful if anyone could explain what had actually happened lol

I have a question for you: How can I effectively boost the economy when my market is already saturated with inexpensive goods? In the mid to late game, my economy is robust, but I'm finding it challenging to further enhance it. Currently, nearly 99% of the goods are priced below market value, with only high-value items like coal, steel, and oil holding their value. What's even more concerning is the difficulty I encounter in refining my production methods. Whenever I upgrade my steel factories, for example, the prices plummet, triggering a market-wide crash. Furthermore, implementing method upgrades results in a significant portion of my workforce, approximately 50%, becoming unemployed. This happens because my factories are operating at full capacity, discouraging me from building additional ones since doing so would lower my income by further depressing prices. As a result, I've refrained from upgrading to production methods, as it would increase production costs and increase unemployment. Is there a viable solution to this conundrum? Would transitioning to a free trade system or considering alternative strategies help address these issues effectively?

Expensive goods = higher transaction value = higher GDP, same in real life In the game you can't keep most stuff cheap even if you wanted to everyone is just going to import it from yoy

I always try to balance supply and demand out am i doing it wrong?

Free money!!!

Don't high prices also destroy a lot of value because the sell orders are less than the buy orders? Like, suppose the price of a good is 10. If your producers produce 50 of it, they get 50 × 10 = 500. If the consumers are buying 80 of it, they pay 80 × 10 = 800. The difference (800 - 500 = 300) just disappears.

can the car outside be a permanent character?

Just realized inflation is good

Play TGR mod !

18:21 don't broken window here.

But aint this guide just saying "every country is basically the same in ways to make money, just the starting problems change"? Let me elaborate, maybe japan or persia has a better start if they invest a little on silk or drugs twords the end but all countries have to industrialize like hell