Comment on “The Size of Antwerp's Economy”

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In reply to https://tao-dnd.blogspot.com/2017/11/the-size-of-antwerps-economy.html

Whoa! It'd be cool to figure out how taxation interacts with these calculations!

Imagine the total reduction in the size of the economy as calculated here.

Suppose 1 gp was added as tax per 100 lbs of iron ore sold in some region. Suppose a reference to iron ore is 1 ton, and this region has 5 references. Then 1 * 5 * 20 100-lb units per ton = 100 gp of taxes across all the iron ore here.

On the one hand that means 100 gp for the rulers coffers, to be spent on things like salaries, infrastructure, war, etc. On the other hand the economy is now 100 GP poorer - - more if there's churn higher than 1.0 here!
And having a high economy is doubtless beneficial to the realm's ruler as well: less chance of revolt (small or large), better dealings with trade partners, more cultural influence?? Who knows.

Anyway you see the tradeoff there! Sic on those PCs of yours who have a domain on transylvania, the choice of taxing this that and the other thing (perhaps to keep it small, they can only tax that which is produced locally. For the games sake.)

Have you any thoughts this direction?

Originally posted at https://tao-dnd.blogspot.com/2017/11/the-size-of-antwerps-economy.html?showComment=1511049406265#c4794713980506189696