Macroeconomics
The Circular Economy Model
SynCity simulates a closed-loop economy. Money is rarely destroyed; it changes hands.
Production: Agents work at Industrial/Commercial buildings to produce value.
Distribution: Companies pay wages to Agents.
Consumption: Agents spend wages at Commercial buildings to buy goods.
Taxation: The City takes a cut from both Wages and Commercial profits.
Redistribution: The City spends taxes on Services (Police/Health), which pay wages to Service Agents, restarting the cycle.
System Warning: If the player hoards too many Credits in the treasury without spending, the "liquidity" in the general population drops, causing a recession.
Key Economic Indicators
Players should monitor these metrics to gauge city health.
GDP (Gross Domestic Product): The total value of all goods produced and services rendered within the city per day. A rising GDP indicates a growing economy.
Unemployment Rate: The percentage of the workforce actively looking for a job but unable to find one.
Ideal Range: 3% to 5% (Natural friction).
Danger Zone: Above 10% (Leads to crime and poverty).
Purchasing Power: This metric compares Average Income against Average Cost of Living. If Purchasing Power drops, agents can no longer afford rent or food, leading to homelessness.
Inflation and Deflation
The cost of goods is dynamic.
Inflation: Occurs if wages rise too fast or if goods are scarce. Prices go up.
Deflation: Occurs if there is an oversupply of goods or if agents have no money to spend. Prices drop, causing business profits to collapse.
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