Wednesday, August 27, 2008

State and free enterprise

You might think that, reading my suggestions above, the equestrian class would rule the entire economy and profit loads of money from it. This isn’t true.

Although, free enterprise is crucial to an healthy economy, hegemony is always dangerous.

So, how could we avoid it? An example:

When you place an industrial building (potter factory) early on the game, it would be ran 100% by the State. You would employ 50% common people and 50% slaves.

With equites available and willing to join you city, they would start the production and, as an incentive, you would share the industry profits by given them a percentage of the entire production, for example 75/25. They would be taxed (gave you money) on their production share (75%), and the 25% left would be paid on items (potter).

Theses State stocked items would keep your city running on trouble times like natural disasters (earthquakes), city shortages, to satisfy the empire (Caesar) requests and trade if necessary. If sold, their price would be much lower than regular prices, reflecting the less efficiency of the State compared to private entrepreneurs.

Another example. It would be particularly dangerous if you hadn’t the army loyalty. So, they should be pay and fed (with wheat and salt?) at the state expenses.

Finally, you could always ‘control’ (on the Senate panel) the percentage of items of a particular industry given to free enterprise. Too much control (100%) would mean no equites willing to live in your city because of drastic fall of their potential income. The same concept would be applied to the senatorial class on farming.


Next article: Production and city Mood

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