RP Economic System Explanation
This is meant to be a guide to the economic system, and an explanation of its terms and where the information has come from and what you can do to improve your economy and customise it to suit your nation as much as possible.
As per the new population system, population for your RP nation is NS pop. x 5% until your NS nation reaches 400 million. Then it is NS population x 1% + 20,000,000. Let's give an example:
- Nation A is 362 million on its NS page
- Nation B is 4.5 billion on its NS page
Nation A would take 362,000,000 x .05 (5% in decimal terms) = 18,100,000 RP population
Nation B would take 4,500,000,000 x .01 (1% in decimal terms) = 45,000,000 + 20,000,000 = 65,000,000
This is the average income on your nation's NS page divided by 6.
Nation A has 265,768 snickers as its average income. 265,768/6 = 44,294.67 (rounded to the nearest hundredth)
Nation B has 61,789 crisps as its average income. 61,789/6 = 10,298.67 (again, rounded to the nearest hundredth)
This is the first of the custom features on your economy. You now can make a choice on how expensive it is as a percentage of income. On average, living costs in a European-styled nation are around 25% of income before income tax and 36% after factoring taxes (which are unavoidable). I would go with the 36% figure if you are not sure of living expenses in your nation.
Average salary - living spending = remaining income
Gross Fixture Capital Investment/Savings
GFCI is the physical manifestation of savings in an economy. Those savings enable institutions to invest in physical assets in the economy like new technologies, etc. The OECD average is around 20%, with more prudent savers being liable to put away as much as 27% of remaining income into savings. Nations that trend highly consumer based tend to have lower savings. Nations that tend to skew towards savings (like RL Australia) will have higher amounts of GFCI in their economy. Don't worry, after living spending, this money doesn't go away completely from your economy.
The raw number (GFCI is measured as %) of savings from remaining income.
This is the money citizens will use to spend in the economy in the consumption figure.
GDP is calculated as consumption + GFCI + gov't consumption in the economy = GDP. Unfortunately, due to the nature of the RP, trade will not be able to play a factor in GDP yet (and many economists leave trade out of it as it has a comparatively negligible effect on GDP unless a massive trade surplus or deficit is present).
Disposable income x population (when economists figure this, they make the assumption that children get spent for in care of their parents)
GFCI x population (same assumption applies here)
Government consumption in the economy
This is not the same as government spending. This is only meant to be a quantification of how much government spends on goods and services independent of it. For example, the US government acquiring F-35's counts in this figure. However, the US government spending money on hiring more people would not.
This is taken as average salary x population x % of gov't consumption in relation to GDP.
The OECD average is 18% and the world average is 17.9%. EU average is 20% and the least developed countries average 11.9%. If you are a country that has more than 20,000 in average salary, you should go with at least 20%. If you are poorer than that, this figure should be 18%.
See above formula.
GDP per capita
Gross domestic product/population
NS Euro: x currency
The exchange rate on NS for your currency in relation to the NS$
After gathering information on all of the nations of the European Union, the index of the value of the euro was NS$1.30.
Euro to currency x
NS exchange rate/1.3
GDP in euros
GDP x (NS exchange rate/1.3)
GDP per capita in Euros
GDP x (NS exchange rate/1.3) / population