

With a little pruning of failed factories such as shipbuilding, I've never seen a compelling reason to stick with State Capitalism past the early game, and even then interventionism works nearly as well. While Victoria 2's capitalists can be exceedingly dense at times (they never seem to manage a transition into electronics properly, for example), I found that the profit motive usually worked rather well, with output in particular goods rising and falling. I always found it awkward, inefficient and time consuming - my best results have always been using a mixture of interventionism and laissez-faire, frequently obtaining a score of 20,000+ from industry. I've always found it interesting that most players seem to prefer State Capitalism. Later, I maxed out all taxes and tariffs, and watched as global prices for all goods fell straight off a cliff, with items such as clothing more than halving in value as a result of my crippling taxation. And what made it beautiful to watch was that it played out exactly as I had been taught it should: Less money flowed into savings, prices and profits rose for all my industry, and my subsidy payments vanished completely (falling by several thousand a day). So, as an experiment, I dropped taxes on the workers to zero and maxed out taxation on my capitalists. In the lesson, we were taught about "marginal propensities to consume" and how transferring money from the wealthy to the not-wealthy increases demand within the economy, because the wealthy are more likely to save the cash rather than spend it. It was the late game, I was by far the largest industry, and most of my produce was going unsold (propped up by interventionist subsidies). For example, I had a lesson on taxation and benefits halfway through a game as France.

A particular delight of the game, and on of the key reasons I keep coming back to it again and again, is the depth of the economic engine behind it, and the way that learning more about economics has actively changed the way I play the game. I've been playing Victoria 2 for a long time now - since I was 15, in fact.
