Wages, Dividends & Companies: Managing Your Economy

Understanding how money flows through your economy—from wages to dividends to company bonuses—is essential for building a prosperous nation. This guide explains these interconnected systems.

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Government Wages: Paying Your Workers

What are Government Wages?

Government wages determine how much you pay workers in government-owned buildings.

Three Levels:

• Low: -30% wages (cheap, but workers unhappy)
• Medium: Standard wages (balanced)
• High: +30% wages (expensive, but workers happy)

Where to Adjust:

• Go to Budget screen
• Find Government Wages slider
• Choose low/medium/high

Effects of Wage Levels

Low Wages (-30%):

• Cost: Lower government expenses
• Approval: Workers unhappy (-10 approval from working class)
• Standard of Living: Workers earn less (may become radical)
• Use when: Budget is tight, you need to cut costs

Medium Wages (Standard):

• Cost: Normal government expenses
• Approval: Neutral
• Standard of Living: Normal
• Use when: Budget is stable, no need to adjust

High Wages (+30%):

• Cost: Higher government expenses
• Approval: Workers happy (+10 approval from working class)
• Standard of Living: Workers earn more (less radicalism)
• Use when: Budget has surplus, you want to boost approval

Example: Sweden

• Government wages: Medium
• Government expenses: 5,000 gold/week
• If raised to High: 6,500 gold/week (+30%)
• If lowered to Low: 3,500 gold/week (-30%)

When to Adjust Wages

Raise wages when:

• Budget has large surplus (10,000+ gold/week)
• Working class is radical (need to boost approval)
• You want to attract workers to government buildings

Lower wages when:

• Budget is in deficit (losing money)
• Interest payments are high (need to cut costs)
• You're preparing for expensive war

Example: Budget Crisis

• Sweden has -3,000 gold/week deficit
• Interest payments: 2,000 gold/week
• Solution: Lower government wages (saves 1,500 gold/week)
• Result: Deficit reduced to -1,500 gold/week

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State Dividends: Who Gets the Profits?

What are State Dividends?

State dividends are profits from government-owned buildings that go to the government treasury.

How it works:

• Government-owned building makes profit
• Profit goes to government (as revenue)
• Government uses revenue for budget

Example: Government-Owned Iron Mine

• Revenue: 1,000 gold/week
• Expenses: 600 gold/week
• Profit: 400 gold/week
• State dividend: 400 gold/week (goes to government)

Private Dividends

Private dividends are profits from privately-owned buildings that go to capitalists.

How it works:

• Privately-owned building makes profit
• Profit goes to capitalists (as wealth)
• Capitalists use wealth for investment pool

Example: Private Iron Mine

• Revenue: 1,000 gold/week
• Expenses: 600 gold/week
• Profit: 400 gold/week
• Private dividend: 400 gold/week (goes to capitalists)

Government vs. Private Ownership

Who owns buildings?

• Government-owned: You built it with government construction
• Privately-owned: Capitalists built it with investment pool

Checking ownership:

1. Click on a building
2. Look at Owner field
3. Shows "Government" or "Capitalist Name"

Example: Sweden's Buildings

• 7 Government Administration buildings: Government-owned
• 1 Furniture Factory: Privately-owned (built by capitalists)

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Privatization: Selling Government Buildings

What is Privatization?

Privatization is selling government-owned buildings to capitalists.

Why privatize?

• Immediate cash (building sale price)
• Reduce government expenses (no longer pay wages)
• Boost investment pool (capitalists get the building)

Why not privatize?

• Lose state dividends (profits go to capitalists, not government)
• Less control (can't directly manage the building)

How to Privatize

1. Go to Budget screen
2. Find Privatization section
3. Select buildings to privatize
4. Confirm sale

Sale Price:

• Based on building value (construction cost + upgrades)
• Paid immediately to government treasury
• Reduces government debt (if you have any)

Example: Sweden Privatizes Tooling Workshop

• Building value: 150,000 gold
• Sale price: 150,000 gold (paid immediately)
• Government credit: 1.42 million → 1.27 million (debt reduced)

When to Privatize

Privatize when:

• You have high government debt (need immediate cash)
• Investment pool is low (capitalists need buildings to invest in)
• You want to reduce government expenses

Don't privatize when:

• Building is highly profitable (you want the state dividends)
• You need direct control (strategic industries)
• Capitalists are weak (they won't manage it well)

Example: Sweden's Strategy

• Privatizes Tooling Workshop (150,000 gold)
• Privatizes Coal Mine (100,000 gold)
• Total: 250,000 gold (reduces debt)
• Result: Government expenses drop, debt decreases

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Companies: Boosting Your Economy

What are Companies?

Companies are special bonuses you can establish in buildings to increase productivity.

Benefits:

• Throughput bonus (+10% to +55% production)
• Applies to all buildings of that type (e.g., all iron mines)
• Stacks with other bonuses (production methods, technology)

Example: Iron Mining Company

• Establishes in iron mine
• Bonus: +55% throughput
• Effect: All iron mines produce 55% more iron

How Companies Work

Throughput:

• Increases output without increasing input
• Example: Iron mine produces 40 iron → 62 iron (55% more)
• Inputs stay the same (still uses 10 tools, 10 coal)

Stacking:

• Company bonus (+55%)
• Production method bonus (+20%)
• Technology bonus (+15%)
• Total: +90% throughput (almost double production!)

Establishing a Company

Requirements:

• Power bloc with Internal Trade principle (+10% company throughput bonus)
• Sufficient leverage (varies by building type)
• Building must be operational (not under construction)

Process:

1. Go to Companies screen
2. Click Establish New Company
3. Select building type (e.g., Iron Mines)
4. Select specific building (e.g., Iron Mine in Scania)
5. Confirm

Cost:

• Uses leverage (from power bloc)
• One-time cost (company is permanent)

Example: Sweden Establishes Iron Mining Company

• Building: Iron Mine in Scania
• Bonus: +55% throughput
• Effect: All 7 iron mines get +55% production
• Result: Iron production increases dramatically

Company Bonuses

Throughput Bonus:

• Base: +10% (from Internal Trade principle)
• Company: +45% (from establishing company)
• Total: +55% throughput

Why 55%?

• Power bloc principle: +10%
• Company establishment: +45%
• Combined: 55% more production

Example: Iron Mine

• Without company: 40 iron/week
• With company: 62 iron/week (+55%)
• Same inputs: 10 tools, 10 coal

Which Buildings to Prioritize

Best candidates for companies:

• High-value industries (iron, steel, tools)
• Bottleneck goods (goods you're always short on)
• Export industries (goods you sell for profit)

Poor candidates:

• Low-value industries (grain, wood)
• Surplus goods (goods you overproduce)
• Declining industries (goods you're phasing out)

Example: Sweden's Priority

• Iron Mines (high priority - always need iron)
• Steel Mills (high priority - bottleneck good)
• Tooling Workshops (high priority - always need tools)
• Grain Farms (low priority - already have surplus)

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Practical Example: Managing Sweden's Economy

Initial State

Budget:

• Revenue: 8,000 gold/week
• Expenses: 11,000 gold/week
• Deficit: -3,000 gold/week

Government Debt:

• Credit: 1.42 million gold
• Interest: 2,000 gold/week (expensive!)

Buildings:

• 7 Government Administration (government-owned)
• 1 Furniture Factory (privately-owned)
• 5 Iron Mines (government-owned)

Problem: High Deficit and Debt

Issues:

• Losing 3,000 gold/week
• Interest payments eating into budget
• Government expenses too high

Solution 1: Lower Government Wages

Action:

• Lower government wages from Medium to Low
• Saves: 1,500 gold/week

Result:

• Deficit: -3,000 → -1,500 gold/week
• Workers unhappy (but budget improves)

Solution 2: Privatize Buildings

Action:

• Privatize Tooling Workshop (150,000 gold)
• Privatize Coal Mine (100,000 gold)

Result:

• Immediate cash: 250,000 gold
• Government debt: 1.42 million → 1.17 million
• Interest payments: 2,000 → 1,600 gold/week

Solution 3: Establish Company

Action:

• Establish Iron Mining Company
• Bonus: +55% throughput to all iron mines

Result:

• Iron production: 280 → 434 iron/week
• Iron price drops (surplus)
• Steel mills become more profitable (cheaper iron)

Final State

Budget:

• Revenue: 8,000 gold/week (unchanged)
• Expenses: 9,000 gold/week (reduced)
• Surplus: +1,000 gold/week (profitable!)

Government Debt:

• Credit: 1.17 million gold (reduced)
• Interest: 1,600 gold/week (lower)

Economy:

• Iron production up 55%
• Steel production up (cheaper inputs)
• Budget stable

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Advanced Strategies

Strategy 1: Maximize State Dividends

Goal: Keep profitable buildings government-owned

How:

• Don't privatize highly profitable buildings
• Build more government buildings in profitable industries
• Use state dividends to fund budget

Example:

• Iron mines are very profitable (400 gold/week each)
• Keep them government-owned
• State dividends: 2,800 gold/week (7 mines × 400)

Strategy 2: Boost Investment Pool

Goal: Strengthen capitalists for private construction

How:

• Privatize moderately profitable buildings
• Let capitalists earn dividends
• Investment pool grows
• Capitalists build more factories

Example:

• Privatize Tooling Workshop (150,000 gold)
• Capitalists earn 200 gold/week (private dividends)
• Investment pool grows to 200,000 gold
• Capitalists build Furniture Factory

Strategy 3: Company Stacking

Goal: Maximize throughput bonuses

How:

• Establish companies in key industries
• Upgrade production methods (better efficiency)
• Research technology (more bonuses)
• Stack all bonuses together

Example: Iron Mines

• Company: +55% throughput
• Production method (Atmospheric Engine Pump): +100% output
• Technology (Bessemer Process): +20% efficiency
• Total: +175% production (2.75x output!)

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Common Mistakes to Avoid

Mistake 1: Keeping Wages Too High

Problem: High government wages during deficit

Cause: Forgot to lower wages when budget got tight

Solution: Lower wages to Low when in deficit

Mistake 2: Privatizing Everything

Problem: Sold all profitable buildings, lost state dividends

Cause: Wanted immediate cash, didn't think long-term

Solution: Only privatize moderately profitable buildings

Mistake 3: Ignoring Companies

Problem: No companies established, missing +55% throughput

Cause: Didn't know about companies or how to establish them

Solution: Establish companies in key industries (iron, steel, tools)

Mistake 4: Wrong Company Priority

Problem: Established company in grain farms (surplus good)

Cause: Didn't think about which industries need boost

Solution: Prioritize bottleneck goods (iron, steel, tools)

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Monitoring Your Economy

Weekly Checks

• Budget: Surplus or deficit?
• Government wages: Can you afford current level?
• State dividends: Are government buildings profitable?

Monthly Checks

• Privatization: Should you sell any buildings?
• Investment pool: Is it growing or shrinking?
• Company bonuses: Are they working (check production)?

Yearly Checks

• Government debt: Is it increasing or decreasing?
• Interest payments: Are they manageable?
• Overall strategy: Should you adjust wages, privatize, or establish companies?

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Conclusion

Managing wages, dividends, and companies requires understanding:

1. Government wages - Adjust based on budget (low/medium/high)
2. State dividends - Profits from government-owned buildings
3. Private dividends - Profits from privately-owned buildings
4. Privatization - Sell buildings for immediate cash
5. Companies - Establish for +55% throughput bonuses
6. Strategic balance - Keep profitable buildings, privatize others

Key Principles:

• Lower wages during deficits - Saves money immediately
• Privatize strategically - Not everything, just moderately profitable buildings
• Establish companies in key industries - Iron, steel, tools (not grain)
• Monitor state dividends - Keep highly profitable buildings government-owned
• Balance short-term and long-term - Privatization gives cash now, state dividends give income forever

Start by establishing companies in your most important industries (iron, steel). Keep highly profitable buildings government-owned for state dividends. Privatize moderately profitable buildings when you need cash. Adjust government wages based on your budget. This balanced approach maximizes both immediate cash flow and long-term revenue.

Master these mechanics, and your economy will thrive.