online games, multiplayer games
Simcountry is an Online Digital World where you are the President of a country.
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What is Simcountry?
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What is Simcountry?

Keynesian Economics (White Giant)

Simcountry: Simcountry Bulletin Board  Keynesian Economics (White Giant)

The Shiekh (Fearless Blue)

Friday, April 01, 2005 - 02:48 am Click here to edit this post
Buying quality and effectivity upgrades is investing in corporations, as is injecting cash into corporations or establishing concessional trading arrangements between your corps and the country.

If you are still not convinced JG, the income stream from a profitable corp can fund the building and improvement of an identical business. Aren't these examples of buisnesses investing in themselves?

A president can raise or lower government salaries, this has an effect on consumption in their countries. In times of recession they are free to increase salaries, which increases consumption of goods in the country. In times of boom they can drive salaries the opposite way, though with no inflation there is no real need to dampen a boom.

A president can build more roads to "boost his economy" (though in reality its a drain on country profitability). More roads means more road maintenance. If the president owns a road maintenance corp he can establish trade contracts between his corp and the country, even above the amount of road maintenance that is actually required. A boost in consumption of road maintenance means an increase in the supplies used to produce it, namely building materials, chemicals, services and HTS. Which boosts demand for BM, Chem, Srv, and HTS. The effect has been multiplied.

Simcountry Introduction