Victoria 3, But Everybody Is Unemployed!

this right here is Belgium and everything is awful now that might be a sentiment that if you do live in Belgium you are quite familiar with but otherwise you may have felt it for the very first time when you were playing this nation in Victoria 3 thinking it would be a great tutorial nation and then this sort of thing happened your entire treasury your entire economy and your entire country went down the drain this is a save game sent to me by David who attempted to build a Social Democratic and Progressive Belgium but then for some reason or another killed over what exactly happened here what the state is that we are in and how to understand and never let this happen to you is something that we are going to be covering in today's video now I gotta tell you I am incredibly excited to cover this one because man David really did a lot of things right look at that we have good colonies the area formerly known as sakota will of course deliver rubber dye sugar and so on to us and on top of that we also took control of the Dutch East Indies that is a really good setup for your late game economy but it is obviously not just that just look at this our German miners make it so that the ngf cannot form Germany we basically literally are denying the way towards a unified Germany now the one thing that we don't talk about is whatever the hell this yeah I don't I don't know either now before we jump into this we obviously have to understand the position that we are actually in so that we can then try to fix it initially it seems as though we have a really good GDP number and we really do I have to say David this is a very very good number for a Belgium game you have 244 million GDP and it obviously used to be higher but it has started stagnating and recently it even started dropping significantly something is clearly fundamentally broken and when we look at our buildings we can see that most of them aren't turning a profit even if they are employed or they are already completely emptied out something isn't working and that something can be spotted quite easily here our population is a total of 28 million it is fairly evenly split between Incorporated and unincorporated population that will be somewhat important later on so keep that in mind but we can see that we have a massive massive unemployment number what the hell is going on over here over 10 percent of our country are just sitting around without work and not really doing anything now normally this number wouldn't be a big issue because commonly when you have unemployed folks who can either build up and then make sure that they find a job but obviously we are quite literally in default we can't actually do that and if you can't do that then normally they go and become subsistence Farmers for some reason they aren't doing that here what we have found ourselves in is a death spiral of competitive Advantage completely slaughtering us and then in return a death spiral that is maintained by virtue of our wealth payments that we give to unemployed people I will explain all of that in Greater detail don't worry about it but for the moment let's just take note 716 000 of our state budget every single week go to the people that are unemployed as welfare payments all the people that are underpaid that is a staggering number the number that you should never want to see in your games now interestingly enough it is not a number that doesn't make sense though trust me this is all working as designed and it is working in a disastrous fashion going even deeper into Belgium's basic stats let's take a look at the battalions right here and you can see that we only have 10 regular ones this is a terrible terrible number David did mention in his email that he downscaled the Army significantly as soon as he noticed that yep everything is awful and our gold reserves are dipping like crazy I have to assume that maybe this was him cutting the military I don't think it was this this much more looks like as soon as you hit the deficit the end of your gold budget you will then no longer be able to construct and this is the actual budget going up and immediately dropping because the economy is fundamentally broken now I have to tell you I understand this this is a bit of a panic pattern right you see yourself in the red you say oh I am spending money on the military let's just downsize it now it could theoretically make sense if it were just a budget imbalance you can see it right here in these sort of areas you can rebalance your budget just by getting rid of a couple of expenses but this right here isn't a budget imbalance this is a genuine economic crash and by you getting rid of Barracks you are doing two things you are getting rid of your buy orders for all of the goods that we have here in in our Market if our Industries are producing these for example our areas in sakota are producing Rubber and if they are producing these they all of a sudden will have less buy orders to work with meaning they will employ less people produce less and our entire economy will contract which is essentially what we're seeing right here but it's not just that of course we are also talking about the actual people employed in the barracks think about it you understand officer sitting in Flanders you're having a good time or in this case in Holland and all of a sudden you're fired that will mean that from your affluent standard of living you will go down to maybe five maybe even 10 levels of standard of living lower which then in turn means you're consuming less which in turn means of course you guessed it you are buying less Goods that then drive these factories into a complete disaster we still do have some factories right here that work but most of them don't now as we take a look at the budget situation of our country it is very self-evidently a complete disaster but there is a very important lesson to learn that is quite similar to the explanation that I gave earlier when it comes to the barracks when we look at this we see you know maybe he was saving some money but it isn't going to save the economic decline that we are experiencing and indeed it didn't save it right I understand that as you are going down as you're going deep deep into the red setting high taxes makes a lot of sense in you know at least at first glance because this seems like it might balance your budget but if it's an economic crisis always remember you can't balance your budget that's not what it's about anymore it's about saving your entire economy and you might just be exacerbating the issue if you set your taxes to a higher level the reason for this is very similar to the barracks issue if you set your taxes to very high this means that your population has less spending money can buy less and with that the industries in your country will suffer even more but it's not just that if you are paying an employee a certain amount of money that lets them maintain a certain standard of living and all of a sudden the taxes for that employee rise you need to pay that employee more money or that employee is going to lose standard of living might not be willing to work for that job any more and leave you behind meaning that the very high taxes make things worse and quite honestly whether you have 500k in the red or 700k isn't going to make the difference so for now we're going to set this to very low this will Aid Us in actually kick-starting our economy once we're changing things around again the same the very same explanation indeed also holds for the government wages I'm going to set them to the medium level and that is it for the moment now if you do happen to be Belgian then what I'm about to say might be something you thought for quite some time the reason for everything wrong with this country can be found in its politics it is fundamentally a political failure that has led us into this situation because as much as David succeeded in building an incredibly rich and Progressive Social Democratic country he made a major major mistake that sank the boat so let's just take a look at what a political system is and where it all went wrong for starters we are still a monarchy but we have a Constitution which means that we vote and so on and so forth we're currently being led by the Communist party and the radical party which supposedly has been a long-standing Alliance now this Alliance is quite natural because both the Intelligentsia and the trade unions are actually vanguardist AKA just a flavor of Communism on the other side in the opposition we primarily have the industrialists who are understandably angry and my God currently at a potential minus 40 because we are trying to introduce command economy now before we get to the actual sets of laws that we have here let's just establish one thing if you are in the situation that we are in going to command economy isn't going to fix it command economy fundamentally says obviously there are no capitalists because everything will be government run or worker Cooperative depending on where you are but more importantly you will be subsidizing every single industry and as I start subsidizing every single industry you may be noticing that yeah things aren't getting better somehow now being a command economy is totally viable in this game but if you're in a position where you are making massive massive losses this isn't going to make it any better we're going to immediately cancel the slope this is not going to happen and instead we're going to analyze what our legal situation actually is as we take a look at the law screen right here I think it should be fairly obvious that indeed David was succeeding at the society that he meant to build in this playthrough we might be a monarchy but we have universal suffrage multiculturalism and indeed also no migration controls making us the perfect all-accepting country on top of that we are also deep deep into forward-facing laws right here as far as for example bureaucrats and the church are concerned and guaranteed Liberties is a must-have if you want to play a free Society to get as many loyalists as you can and as we take a look at the Loyalists I think it is easy to tell that that has actually paid off the amount of approval that we gain here from the IGS is definitely worth it we are also building a country that economically is quite forward-facing interventionism free trade and graduated taxation make it so that the tax burden is with the richest and that we can get any good for cheap into our economy now on top of that we also do have workers protections compulsory primary school and indeed old age pension making us into a real welfare state and this is to a degree where the issue really lies whether dog is buried let's take a look at four laws and how they impact our competitiveness and our wage pressure free trade Colonial exploitation workers protections and old age pension together are ruining this kind country we need to work on something here and we're going to work on it in the spirit I think of the government so of the Communists all right now I will not lie to you the next explanation that is following here that will open your eyes to what went wrong in this country and why all of this is happening isn't an easy one to understand it is an incredibly complex issue it is an issue that is a real life phenomenon but that if you bear with me will help you understand how to play Victoria 3 in a much much more fun way and shape your nation in a much more exciting and proficient way so let's take a look at this this is Flanders Flanders is our capital state and as a capital state that means that they are actually also counting as Incorporated what does Incorporated mean that basically means that our institutions are active in these states and that we are taxing the population that is a very very important highlight let's take a look at one of the buildings in this location you can see these power plants are doing incredibly incredibly poorly they have facilities for 60 000 people but only 360 9 are currently employed even worse we are still not profitable usually you start downsizing so that maybe afterwards you can hire somebody with a lower wage and maybe more importantly so that you are hoping that you're using less of the input goods and can then put out into a market that needs more of the output good because of course you just reduced your actual output this isn't happening here for some reason the output good is overpriced you can see it right here you could sell this for 34.4 percent over the base price and the input goods are quite alright as well sure engines could be cheaper but I mean 26 shouldn't really rock the boat right here and yet we aren't turning a profit if we on the other hand take a look right here at the Houser land for example we are looking at power plants that are employing 40 000 people have the very same market conditions as you can see but they are turning a profit now this is where we need to understand competitive advantage and wage pressure I mentioned this earlier but I wanted to highlight very specifically that Flanders wasn't the position of being an incorporated State what that means is that we have a higher minimum wage there because that is what workplace safety offers does for us in Incorporated States and we have higher welfare payments there this all in all makes the wage costs that we face in Flinders as a business much much higher you can see it right here we are paying 21.2 average annual wage if we take a look at the Kazakh Sunni laborers here you can see that they have a pretty decent standard of living there is nothing wrong with that but they also have a 26 tax burden this is something that makes flenders worse when it comes to competing with other areas that are producing the same Goods but for example don't have any taxation like our unincorporated territories here if I take a look at the labels right here they also have a standard of living of 20 but have no taxes and with that we are in a position where well their net income situation is a much much easier calculation than you know again any of the workers right here in the power plant in Flanders ultimately this is very much comparable to a modern day Outsourcing issue somewhere someone will be willing to work for less and make sure that they can produce a similar or maybe even the same product in this case we have effectively out competed ourselves with our colonies remember we are in a position where Colonial exploitation even puts down the starting wages in a colony and on top of that actually also makes it so that they have higher throughput meaning they can make more out of the same amount of input this means that these power plants in hauserland have an annual wage that is five pounds beneath ours in Flanders because they don't have to pay income taxes they don't have to pay dividends taxes they don't have to pay consumption taxes and can still maintain the same standard of living this is a competitive advantage that we are facing and we aren't just facing that with our colonies because we have free trade we are facing that with literally any country in the world if you are in a position where you want to have a very high minimum wage you need to protect your Market if you are in a position where you want to pay a very high amount of welfare payments you need to protect your Market you need to make sure that nobody not even France for example can say I can produce this glass for a cheaper amount because my average annual wage is simply lower than yours if that is a situation that you're in you are going to go bankrupt just compare these numbers basically we have given the entire world a competitive Advantage now I do want to highlight these laws individually free trade Colonial exploitation workers protection and old age pension are not bad individually and in different combinations they can absolutely work now to close the loop and really finish this explanation we need to understand why we have so many unemployed people normally if you're looking at a situation where something just isn't profitable people get fired and then you know either return to the subsistence Farms where you don't need to worry about them or they return to a different job at a lower wage because their standard of living was simply going down too much in this case our high General wages and think about it even without anything working we still are looking at an incredible amount of you know actual wage pressure right here our high General wages determine how much we actually pay in welfare payments yes that is how it works this means since our wages in these areas are so high our goddamn unemployed folks are getting an incredible amount an enviable amount of money just via welfare payments they might still be paying taxes they might still be worse off than people working in for example our colonies or elsewhere but why the hell would they pick up a different job if they can simply sit here collect the money and be okay now this puts us in a situation where they are neither going back to work nor are they going back to the subsistence farms and instead are doing this to us yeah so what is the solution the solution is indeed by simply fixing the situation in our laws and there are two main dynamics that we can take we could either go against workers protections we could try to get rid of this this one and for example go for regulatory bodies we could do that because that way the minimum wage goes down the wage pressure overall goes down our businesses become profitable again and with a wage going down our unemployment benefits also go down which is excellent because this will lower the standard of living off the unemployed population pushing them either into jobs or back into these subsistence Farms but I mean come on we are ruled by Communists they wouldn't want to do that they're not interested in that they want to protect the Common Man and with that we are going to turn towards protectionism we could also actually go full isolationism but I gotta tell you just by uh looking at this I can tell you that our economy is not actually self-sustainable so let's not do that instead we're going to go with protectionism so that every other part of the world is less competitive compared to us as we will start putting tariffs on their stuff this will not just give us tariffs but it will make our own Industries much more profitable and competitive again hopefully putting them back into business now the other step that I will be taking is I will take a look at our colonies because again they have a huge competitive advantage and I will make sure that none of what they produce clashes with what we are producing at home this means sadly all of these power plants are gone this will also mean that most of these glass manufacturers will also be gone but as we get rid of them this will relieve the pressure because now we are producing less of this extra electricity meaning it is much more worthwhile to start producing it yet again after you know becoming profitable again you can see it all of a sudden they are profitable because there is now a shortage in electricity this makes it so that we can kick-start our economy already despite being deep deep in the red the other thing that we will have to take care of is the fact that we have low Market access everywhere this is a very very classic mistake you can see it right here we're doing electricity we're doing engines we're doing all that stuff and yet we you know despite having 355 layers of this are not actually getting any infrastructure out of it this is a very similar panic button you're looking at something you see oh my God they are under infrastructure I need to build more Railways you don't it's just that they're underemployed as soon as we start subsidizing it and again like you're already deep in the red look at that look at this graph you're already deep in the red whether you are 1 million in the red or not doesn't make a difference here trust me I will subsidize it and then once we hit 100 in these extra locations I will start indeed decimating these layers of Railways so that we can hit roughly around 100 maybe a bit on top of it but as you can see barely any of the levels we actually had here were necessary so let's keep it this way now what you can already see as I took people into the railways buildings and slightly made for example the power plants a bit more profitable at the very least many more people have now gone back to work or you know have started working for the railway so for us essentially this drives down the welfare payments as soon as we are in a much much better position via protectionism here we will be back in the game I promise you this much as soon as we put people back to work we will see a huge Resurgence of effectively everything now the other thing that we should also do is because we are in a massive bureaucracy deficit let's just scale down some of these institutions that we don't care for for example let's get rid of some of the schooling here just because well we are doing quite all right here and let's get rid of some of the colonial Affairs sure oh and here we go this is absolutely gorgeous all right so this is genuinely really great news because the fact that we are now in a situation where hey the low passed at the first attempt we now have tariffs once again we are first of all looking at a good amount of income second of all since we are making it more expensive to bring things into our Market that becomes less profitable making it so that the competitive advantage of anybody outside of our Market has been decimated does that fix our situation yet no it kind of really doesn't but a part of that is also our free trade agreements right here so in general listen I will always say try to pursue free trade agreements it makes things cheaper and you can push yourself up in standard of living however if you do insist on going with a minimum wage on going with unemployment benefits and so on do not get trade agreements I think the number changes that you can see here already should tell a story all on their own and as soon as we get rid of these trade agreements we will be in a position where sure I might have to rebalance some things here and there but in general these factories will now begin to be profitable once again and that puts us back onto the market already our GDP is recovering and that literally isn't me I am exclusively subsidizing the railroads right now that is just because we just decimated the competitive advantage of the rest of the World by reintroducing tariffs now the other thing that I will be doing is I will actually change all of our production methods to privately owned so let's talk about why this is a good move in this particular circumstance publicly traded in general makes it so that you will have more capitalists giving more power to the industrialists and strengthening your nation if you want to go that way but these people here collect the paycheck this paycheck comes out of the pocket of these industries and when they are profitable this means that they have less money to for example pay to their workers for a competitive wage if I cut these capitalists out sure I'm firing a whole bunch of people but I am putting us into a situation where it is easier to be competitive for these buildings as they no longer have to pay well the Communists and government would probably call it Vermin what the hell is happening over here David villain the 14th this is the funniest name I've seen in this entire game our industrialist has apparently played the most dangerous game returning from a safari Expedition David villain XIV was her ruined on a small island of the West Indies there he was hunted like an animal by the Swedish Aristocrat Jewels springed poulton you can't trust these Swedish Aristocrats Splendid one of us is to furnish re-pass for the hounds the other will sleep in this very excellent bed on guard David huh well he won good for him and that was the year 1885 we have stimulated the economy we've restored our position uh taken away the competitive advantage of everybody around us and taken away the competitive advantage that our colonies had when they were producing what we are also producing and all of a sudden we are back in the positive my God it is happening we're still doing welfare payments as I said we are staying with the Social Democratic communist that deals of the playthrough and now we are in a massively massively positive position because this entire time now that we've revitalized the economy the investment pool has gathered a lot of money and we're going to be utilizing this of course to immediately overcome any other issues I got to tell we don't need more coal I'm Gonna Cancel all of these what we will be building first and we're going to be doing this in Flanders itself because Flanders still has an incredible amount of unemployed people as you can see that are of course bringing down our income we're going to go ahead and we're going to build Glassworks in particular as well as of course Food Industries making it so that hopefully we can make both of those incredibly cheap and none of it will be financed with my money both of it will be financed with 21 million in the investment pool and look at this income going up I absolutely love this you know this is a real life phenomenon I think I already know that actually these comments will be full of people going oh my God this is like the Dutch disease right here yeah that's a classic thing that every Dutch person will talk about but that's sort of what it is we just decimated our competitive advantage to such a degree that unless we were to protect it we would have to roll back our actual standards of living for the workers and that is of course unacceptable so I decided to be much much more protective and we're gonna see the rewards you think in just a second as we are rolling back our debt and we're finally seeing the end of the tunnel even at this point we still have 26.8 percent of tax ways that of course we have to get rid of um France we're not doing a trade agreement this is the trade agreement ruined me okay okay I know that you are in a much much better production-wise uh situation and I'm not going to let you exploit that okay sorry about that buddy but that is not going to be happening alright we just unlocked houseware Plastics which makes it so that our oil here in Friesland actually will find a use we might even have to look into yeah this is what I thought expanding this so that we will actually have the potential right uh putting it to use I should say and then we might even want to take this over directly north germana Norfolk here in particular has a great amount of oil and obviously we want that um but yeah we are making it back not just in terms of our budget but also in terms of the economy just take a look at that you'll have to see it and you know what speaking of Communism why don't we just get rid of the monarchy right here we could do a counselor public but most people actually dislike this uh you know what why don't we build a communist monarchy sure that is a that is a great idea I think we just need to switch to autocracy and at this point I do feel like we could almost actually go to command economy but it does oh wait a minute it looks as though one of you is no longer communist you just a radical now which means you're a Republican and you are a Vanguard is still to this day damn the communist alignment has fallen out of the window and I assume that that means we will kind of just maybe go into republicanism a bit here let's do a parliamentary Republic sure why not now it has to be pointed out that our lower Stratus standard of living is slightly lower than before when we started but and I want to highlight this um I mostly reduce the competitive advantage that others had on us and now we can finally work on making it easier to even live in this country you know as just a regular person and we're going to be doing this by going down going down with a Taxation and still turning a profit France still no get out of here oh man and I gotta tell you United Belgian States in this flag this is way cooler than regular Belgium Leopold uh you know I'm happy they dig on buddy keep it up proud of you speaking of being proud of something I think it is also time that we actually do start rebuilding our army and our Navy as we currently well don't really have either of them this will bring people back into actual employment here that are currently just sitting around and most importantly it will make it so that Prussia doesn't get any ideas just look at this graph isn't isn't this a beautiful graph we've almost actually caught France right here in no time whatsoever this is where we took over boom and after just one more election apparently our Direction has actually been completely confirmed the intelligentia have formed a massive massive radical party around republicanism and freedom rather than the trade Union's idea of being communist so you know what let's just stick to social democracy for the time being you can see I am building up our economy not just in the civilian sector but also in everything related to the Army we are back now the one thing we are definitely missing is to build a skyscraper many people don't know this but if there are skyscrapers more than one in the world then there will be blimps flying between them currently there is one in Paris and there is one in Berlin creating this beautiful situation we need one in bristles as well so we're gonna do that as soon as I get these wonderful Electronics Industries running so that we can then introduce telephones into our government Administration getting much much more administrative bureaucracy and with that of course the capability ability of actually making this work yeah look at that with the telephones we are now in a position where I can actually just bump these numbers up again you know what do more welfare payments it's completely fine we will survive that but much more importantly let's take a look at the skyscraper site right here we're gonna get one and I will see a blimp fly from bristles and there you go I think it is time for a bit of a skyscraper building right here um you can only build these in your capitals and once you do again the main benefit I think is that the blimp starts flying around all right now I hate doing this but I definitely have to Annex Anova because they have oil and quite a bit of it and if we do Annex them well we get all of that and can actually build on it it's a bit of a shame that we can't do that without doing this because I don't want this land but hey you gotta do what you gotta do for oil right now as you can see the Germans got involved they're attempting to secure Hanover by just you know helping them out here but yeah it's not going all that great for them I don't think oh and would you look at that we have actually constructed our very own skyscraper and that is absolutely gorgeous because it means that we can of course activate this and I think just a couple of seconds there they are man the frame rate at this stage of the game is very bad he's going towards Paris you love to see it I really really like the way this is implemented I sadly don't have a skyscraper that is you know over the ocean in America but I assume they actually go all the way right I I love this little tidbit now I think that we're going to be ending it here we didn't turn communist that is completely untenable because now literally everybody has abandoned that ideology you can see he's a radical and they're a radical everybody's a radical nobody's a communist and we have also now actually overtaken France in terms of GDP we're doing incredibly wealthy welfare state still stands because our standard of living is truly unrivaled in comparison to essentially I would say anywhere else yeah just look at the instead of living 22.4 what an embarrassment if you compare it to this standard of living 29. uh it is beautiful the other thing though is that I think France is decidedly the winner of this just because of this absolutely disgusting and yet working French market should I mean congratulations but we have colonized we have conquered the only people that hate us in our realm are actually the Germans be that as it may everybody else absolutely loves us I hope that you learned something in this video on the topic of hey what the hell do you do when your economy crashes because you ruined your competitive advantage and for now I'll see you later alligator

Channel: One Proud Bavarian

Views: 89,271

Keywords: victoria 3, victoria 3 review, vicky 3 review, victoria 3 diplomacy, victoria 3 warfare, victoria 3 population, victoria 3 politics, victoria 3 economy, victoriy 3 noob, victoria 3 bad, victoria 3 tutorial

Id: yJjpJo_aMEE

Length: 28min 54sec (1734 seconds)

Published: Tue Nov 01 2022