Capitalism 2 and Capitalism Lab Forum

I think many city assets should be privatized, such as seaports, hospitals, universities, and media buildings (tv, radio, newspapers). The city will temporary lose control of its universities and hospitals until the budget is balance.

Detorit Case Study: http://52.21.156.175/wp-content/uploads ... 1-copy.pdf

Some excepts:

Years of overspending, falling tax revenues and poor service delivery led to demands for State
oversight. In December 2011, the state of Michigan began a review of Detroit’s fnances to
determine the need for either an ordered consent decree or a State-appointed emergency
manager who, under state law, would have the power to recommend fling for Chapter 9
bankruptcy.

In Chapter 11
bankruptcies, it is clear that creditors come frst and equity owners come last, and sometimes lose
their stake. In Chapter 9 bankruptcies, however, while creditors still take priority, the municipality’s
“equity owners” — the residents of the municipality that has failed — have certain rights as
citizens that don’t disappear. In some way, City residents must be provided with police and fre
protection, schools for their children, and lights for their streets. Even in bankruptcy, somehow
Detroit would be required to pay for these services.

After many weeks of unsuccessfully negotiating with Detroit’s creditors, pension boards and
unions, Orr recommended, and Governor Snyder approved, a fling for Chapter 9 bankruptcy
protection on July 18, 2013. Detroit listed $18 billion in liabilities, more than four times the
$4.2 billion owed by Jefferson County, Alabama, which had fled the nation’s previously largest
municipal bankruptcy in 2011.

Another key to the settlement was the creation of a public/private trust funded with over
$800 million from foundations, corporations, private donors and the State of Michigan, which
was coined the “Grand Bargain.”

This was one of my suggestions

). In September 2014, Syncora settled
its $333 million claim against Detroit, accepting about 13 cents on the dollar instead of the
75 cents it had demanded.

In Summary:
-A way to eliminate debts (.04 per dollar owed/whatever the city can afford)
-A mechanism for AI & Human individual investors and companies to contribute to a city that recently filed for bankruptcy and/or having finnicial problems [AI would need to be able to tell that they have extra cash to spare]
-The city immediately starts with 100 million dollars (or if inflation is enabled whaterver is required) that will go to providing basic services.
-Any non-essential services will be "Turned off" and/or put up for sale Government Apartment Building, Firms, Sports Staduiams etc.
-The money obtained from the sale of these non-essential services/firms will go to the city to assist it in recovery.
-The AI and/or Human Player who was in Mayor during this period will not be able to be elected mayor of the affected city for X number of years.

I think this...from a game playing prospective, will provide a smooth transition from bankruptcy to a viable functional city within a timely manner. In the news feed it would say Rome has declared bankruptcy, creditors has been paid X cents per dollar. The Mayor has been forced to resigned.

au8633 wrote:All services should be shut down until city has money and when that happens the mayors rating suffers

Right now, we have implemented the option for the player to suspend the operations of all types of public buildings, except schools and hospitals, which cannot be shut down under all circumstances.

Do you think we should remove the restrictions and make it possible for the player to shut down schools and hospitals as well?

David wrote:

au8633 wrote:All services should be shut down until city has money and when that happens the mayors rating suffers

Right now, we have implemented the option for the player to suspend the operations of all types of public buildings, except schools and hospitals, which cannot be shut down under all circumstances.

Do you think we should remove the restrictions and make it possible for the player to shut down schools and hospitals as well?

I think that makes sense. Basic services should be provided regardless because if not it just makes the situation worst.

usually its impossible to shut down police n fire departments completely, sure govs in trouble do reduce them heavily, often by 50 - 75% but atleast 1 cop / town, 1 fire truck is kept at work and reduce spending on scools/hospitals aswell heavily. maybe theres a way for the devs to reduce the spending for those building by up to 75% and reduce the qualtiy or effect of this services for the surrounding area i.e. apartments, commercial buildings etc

I have some suggestions,Sorry for my poor English, I'm Chinese
I'm totally agree shut down some public sector, but my suggestion is city hall and police-station ,fire Department can't shut down at any time.

Another public sector such as hospital, In the real world there have some solution,public hospital and Private hospitals,and also I suggest player can donate or invest(share less than 50%) the public hospital, a joint state-private ownership.
Or hospital loan to private

So this is my idea,totally public,joint state-private ownership,totally private.Or just loan to private.
It can be used in Media,hospital,Sports,Culture,and education.So how to have worth to investment is a question.
Maybe something like social insurance are needed.

There's my suggestion in Chinese
在政府财政困难的时候，可以把公共设施私有化，（除了市政厅、消防队、警察局之外），在现实世界里面，有公立医院和私立医院
我建议允许完全公立、公私合营（私人资本不超过50%）、完全私营化、或者出租给私人运作。
同样，建议推出社会保障机制，使得医疗、体育、文化和教育成为值得投资的行业。

Sorry for my poor English , I'm Chinese ,That's my second suggestions about this topic
Another suggestions is first Cash of Government can invest stock market,Cash of Government is also a cash like companies
build factory,retail store,or just invest them

Second have a Jointly funded way in local city.
Before you build a factory or retail store,you will be shown a dialog box, shows local capital policy,tax,wage and fees about building you invest.
It doesn't means all industry are totally private at any time in any city, policy are influence by elections and parties.

So,in this DLC, different city have the different economy states,but have the same interest rate. I don't agree this way.
I mean,Each city have its own interest rate, have its own CPI in a very hard game.It's more funny isn't it?

If government run out of fund only have the way to issue bond,Who will be repay for it?
This is my idea about how to create revenue when a city run out of fund,and that's all my suggestions

Here is translation in Chinese
我建议政府资本可以如同私人资本一样，投资股市 ，成立国有公司建工厂商店，或者成立投资公司投资这些。
其次我建议成立合资制，在该地区投资之前，出现一个对话框，显示本地资本政策、税制、工资水平和你的投资。 并不意味着在任何地区任何时间任何行业都是完全允许私营化，会受到选举和党派影响。
在本DLC中，各地区经济发展水平不同，利率一致，我建议在高难度游戏下，允许单一地区拥有本地利率和本地CPI，那会相当好玩 。
如果政府没钱只知道发行债券，谁会去偿还。我的思路就是如何给政府创造收入。

I have more my suggestions, Sorry for my poor English
When government run out of fund,
First how about to setup a zone to Tax incentives,Or Tax incentives to one or more industry.So that Attract investment or export.

Under the situation,Each has its own CPI (like different country),how about set up import custom tariff to protect local industry

Last,it's my suggestion about establish service industry.
The screen like public sector will be better.We input industry product, and Training facilities advertisement.
We get a different value-add output.Also, this output only can be used consume in this building.

Think of a situation,For example,Bread and Frozen Beef,you can consume them in Michelin-starred restaurants(a high Training facilities advertisement building),McDonald's(a normal Training facilities advertisement building) or Small bars(a low Training facilities advertisement building),or just buy them in supermarket(just retailing value output)

So there we get a different value-add output,isn't it?

Here is translation in Chinese
我建议，当政府用尽资金的时候，可以对一个行业实施税收优惠吸引投资，或者设立税收优惠区域。以便于吸引投资或者出口、
其次，在不同地区拥有不同CPI的情况下（类似于不同国家），设置进口关税保护本地工业。

最后是我对设置服务业的建议
界面设置为和公共设施一样的方式，输入工业产品，投入资金培训设施和广告，获得不同的增值产出。产出物只能被建筑消费。

举一个例子，面包和冻牛肉，你在米其林星级酒店消费（高培训设施广告投入），麦当劳消费（中等培训设施广告投入）和小餐厅（低等培训设施广告投入），或者从超市购买（只有零售增值产出）
我们得到的增值产出截然不同

Sorry for my poor English
I means in a developed city,before player and AIs join the game,there is a part of inherent-exist small and medium enterprise.(Shows in gray),Just like Public shareholders in stock market.Player or AI is just a special one from them.

Yep,there is a inherent-exist economy system inside the city,and these small and medium enterprise (gray enterprise) are mainly focus on service industry.Player and AIs just create a platform to encourage these 'gray enterprise'.Also,Player and AIs can become a Tycoon of services industry.

Gray enterprise can create revenue for city,create consumption of industry product,and reduce unemployment rate,Don't forget these effect.Consume is a components of value-add tax.

For I means of the services industry.Example restaurant
We need the input industry product bread and frozen beef, and a part of process servicing,and get an services output EAT
(can't be purchase by other building).And our restaurant get a part of value-add(basic on training facilities advertising).

I mean we join the services industry,the game is more realism.You can't ignore any restaurant bars and cafe nearby.
I know the raw materials of restaurant(e.g. McDonald's) are provided by huge company, or even from China.
But you can't say,a finished burger are all made in china.It's cooked by kitchen in this restaurant.It's a part of value-add.

I know I've a thought a lot today.
The last thought is primary school and junior high school can't be private.It's compulsory education.
But in high school and university, private is very normal.

Also private hospital are very normal in real world,but we need Mechanism of social insurance,Employers and employees will have a rate proportion.

The library and museum, I mean we can establish tourism.Just like industry products,By selling ticket create revenue,The training facilities of buildings can improve tourism attraction, cause more Short-term migrants in the city.

Media is very normal in the game.Sell to private.

The sports,so we can build sports club,rent the stadium or even purchase stadium.Clubs and stadium by selling ticket create revenue.The facilities of stadium are a major impact of the club.

I think club are belong to the part of advertisement (like Sponsors).So the training facilities of clubs, can improve the Brand awareness inside the city.And also improve tourism attraction, cause more Short-term migrants in the city.