Welcome Guest [Log In] [Register]
eRegime is a forum mostly based around forum games. Users think up and run said games, being given the means necessary to do so (such as full mod powers over the forum areas of their games.) It has been around since 2012.

You're currently viewing the forum as a guest.

Username:   Password:
Add Reply
Drumponomics; Guide
Topic Started: May 5 2018, 05:04 PM (110 Views)
warrenblinston
Newcomer
Drumponomics is the name I've coined for the economic policies of President Ronald Drump, who I played in the base game (Opposition scenario). There's no need for me to tell you who the real person is that he's meant to be. ;)

This was my agenda for the game:

- Increasing economic growth to 3 per cent a year or more on average, with the possibility of 3.5 per cent;
- Creating a massive energy boom that would lead to energy independence for America within a decade;
- Cutting spending in order to allow for massive tax cuts;
- Cutting the corporate tax rate to 15 per cent;
- Abolishing the inheritance tax;
- Cutting the top rate of income tax to 33 per cent and the middle rate to 25 per cent or less;
- Investing in infrastructure, with up to $1 trillion of additional investment in infrastructure;
- Increasing funding for the drugs investigation squad to tackle the drug scourge;
- Curbing illegal immigration primarily by building a 2,500 km wall on the Mexican border;
- Reducing the levels of immigration;
- Deporting illegal immigrants and offering no amnesties;
- Hiring additional troops for the military;
- Fighting terrorism at home and abroad, with the ambition of eliminating the Jihadist Caliphate.

I achieved all of these objectives, more or less. I'll explain what happened by dividing up the explanation into subsections.

Economy

The GDP growth rate averaged nearly 3.7 per cent a year during the Drump presidency. America exploited its shale oil and shale gas reserves to the full, with wells built in more than 30 states. Conventional oil wells were built in the Gulf of Mexico, with a well being built in every "good" spot to maximise output. Total output from conventional oil in the Gulf was only a fraction of the huge amount of oil being extracted from shale oil on the mainland, however. A solar and nuclear power boom ran alongside, with solar plants being built in Texas and New Mexico, and nuclear power stations in Alaska.

Taxes

Inheritance tax was abolished.

Income tax rates were cut to 7, 20 and 33 per cent by the end of President Drump's two terms.

The corporate tax rate was cut to 15 per cent.

Cuts were made to the social security contributions taxes for both employees and employers to boost growth even further.

Airline ticket tax scrapped in the first tax reform in 2018 (which as mentioned on another thread produces a sizeable boost to the economy relative to the revenue the tax yields).

Total net tax cuts amounting to $500 billion a year by the end of President Drump's two terms.

Spending

Total spending cuts amounting to more than $300 billion a year by the end of President Drump's two terms. Please note that this is the total of net spending changes made, not the difference between spending outturns.

The total spending cuts were lower than planned because the shale oil and shale gas wells produced a huge increase in the economy and tax revenues in 2018. GDP growth for 2018 came in at 13.11 per cent and I wasn't using contracts. It was an achievement I still find hard to believe actually happened. Planned cuts in health spending for future years were curtailed and police spending was largely protected from further cuts too. Research spending was cut less than originally anticipated.

Transport spending was sharply reduced and some cuts were made in culture and the environment too. I mentioned on another thread how to cut some parts of environment spending without taking a hit in popularity. I implemented those basically. I also reformed the secret services to save billions of dollars, while providing a boost to anti-terrorism operations and I slashed international aid massively over time.

Secondary and higher education categories all maxed out in late 2017, except for medical training. I do this in all my games as a developed country, as mentioned on other threads.

Even though I cut spending quite sharply over the years, I still increased staff numbers in some areas. Police, teacher and medical staff numbers were all at 700,000 each by the end of President Drump's two terms. The military was increased to 1.55 million in size and, while researcher numbers were initially cut back to 1.4 million, I increased the total back to 1.45 million in the final year of Drump's presidency.

Infrastructure

Most of the money was spent on energy infrastructure (nuclear power stations and solar plants) to create the energy boom. I built a few universities and research labs, as well as building tram systems in all states that didn't have one (quite a lot). A grand library was built in Pennsylvania too.

In total, 111 nuclear power stations were built in Alaska, 291 solar plants in Texas and 70 solar plants in New Mexico.

Public finances

America went from having a budget deficit close to $500 billion to having a surplus of roughly the same amount by the end of President Drump's two terms. The budget went into surplus from 2019 onwards, mainly thanks to the huge additional revenue from the shale oil and gas boom.

Law and order

The crime rate more than halved during President Drump's two terms. The drugs investigation squad and the local district police were increased to 10 stars each. I also provided more funding for sport, maxing out most of the categories in the main tab over time, and re-orienting spending in the "disciplines". So funding for sumo was scrapped for example and polo and others sharply cut, while tennis, cycling, swimming, car racing and a few others were all increased or kept high. I believe that this spending on sport does help to cut the crime rate, hence why I do it in all my games.

Immigration

Mandatory visas were introduced within a few months of the President taking office. The borders were closed too. This drastically reduced overall immigration levels and population growth was cut by a third to around 0.48 per cent a year. The wall on the Mexican border was built and reached more than 2,000 miles (according to the minister). More than 90 per cent of all the illegal immigrants present in America on January 1st 2017 were deported by the end of the President's two terms.

Fight against terrorism

Nearly all terrorist groups gone completely from America by the end of President Drump's two terms. The Jihadist Caliphate was obliterated from American soil. America also helped drive Jihadist Caliphate out of Syria too, with the Syrian government regaining control of all territories within a few years.

Interest rate policy

Same as in all my games, more or less. Interest rates up to 4 per cent at the start of the year, and down to 0.5 per cent in December (14th December or thereabouts being the best date to cut the rates it seems). The purpose of the policy is to exploit the game mechanics slightly to get that little extra economic growth, while ensuring that the revenues you get from the growth are not swallowed up by inflation. In other words, you get more money as the economy grows, like governments do in real life. So while someone on the old forum derided my strategy as "gamey", I do it to ensure that the results match up more closely with real life.

Work and welfare

The only real downside to the Drump presidency was that unemployment became a problem. Cuts to the employment agency could have been causing or exacerbating this. Help for employing young people and seniors was maxed out and anti-discrimination programmes cut right back to cover most of the cost. Funding for checks on the unemployed increased. Duration of jobseeker payment reduced to 5 months. Monthly rent allowance increased significantly and minimum solidarity allowance introduced and increased. Minimum wage increased in the early years and then left frozen.

Economic growth rates

2017 - 2.16
2018 - 13.11
2019 - 1.45
2020 - 2.06
2021 - 2.84
2022 - 2.34
2023 - 2.74
2024 - 2.81

Average - 3.69 per cent

My overall assessment

I thoroughly enjoyed the playthrough. It really felt as though America had become great again. :D

Beyond President Drump

I continued playing as Drump's successor, Tony Roless. President Roless saw his task as keeping America great.

President Roless continued cutting taxes by around $40 billion each year. Due to massive friction with the Democrats caused by President Drump's "anti-social" policies in their eyes, President Roless decided to propose tax reforms that were more "social" in nature while still boosting the economy. So he restricted further income tax cuts to the lowest bracket only and decided to increase the real estate tax by a few dollars each year to offset the cost of some of the other tax cuts, while appeasing the Democrats and the Left generally. He also cut social security payments (the payroll tax) for both employees and employers. After the first two years, he decided to begin reducing the corporate tax rate, with the goal of a 12 per cent rate by the end of his two terms.

On spending, President Roless decided to reverse the trend of his predecessor and increase day-to-day spending modestly each year during the first term of his Presidency. He hired an additional 100,000 police officers, 100,000 additional teachers, 100,000 additional medical staff during his first term. He also increased the size of the military by 50,000 and hired 250,000 additional researchers. He restored some cuts made to the education department and policing during the Drump years, and made some increases in secret services spending. He also provided modest increases in health spending and reversed some cuts made by President Drump.

On infrastructure, President Roless saw his task as keeping the energy boom going to keep the revenue flowing in and jobs being created so that unemployment would gradually fall. He built lots of solar plants in Texas and New Mexico and lots more nuclear power stations in Alaska. Every year it felt as though room was running out in Texas for more solar plants (especially when building 100 each year!), yet I always found room for more :D . President Roless also built many universities and set a target to increase the number of universities by 100 during the last five years of his presidency. He also renovated dilapidated housing in several states, with plans to renovate much more.

The economic record of President Roless.... so far

2025 - 2.57
2026 - 2.94
2027 - 2.98
2028 - 2.98

Strong economic growth has continued and unemployment is down to less than 4 per cent. The budget surplus has remained above $500 billion a year, even with all the tax cuts, increased spending and massive infrastructure projects.

Future economic prospects

It depends on whether or not I can prevent unemployment from falling to 0.1 per cent - a plague that seems to haunt many of my games. It always seems to happen after I've hired lots of researchers, as though the game is trying to thwart my ambitions ;) . I've been doing the building projects by "region" rather than selecting the spread across the country option. I'll do what it takes to prevent unemployment getting too low and will be cutting back sharply on the back-to-work programmes, increasing interest rates to a higher level at the start of each year (5 per cent instead of 4 per cent probably). Oh... and I will keep the energy boom going, by increasing the number of nuclear plants I build each year.
Offline Quote Post Goto Top
 
DealsFor.me - The best sales, coupons, and discounts for you
« Previous Topic · Game Discussion · Next Topic »
Add Reply