Economic history of Delamaria
The economy of Delamaria has changed drastically over the years, developing from a sparsely populated wilderness to a highly developed financial centre.
Colonial
Initial investment in the economy of what is now Delamaria came from the colonial powers of Great Anglia and Lysia, through crown funded expeditions and settlements, or through patronage of private backers. In the 16th century the primary industries of Delamaria were agriculture, lumber harvesting, fur trapping and herbs (namely tobacco), all of which were dependant on trade with the Occident.
As the population grew through an increase in migration, largely because of Anglian subsidies for settlers, so did interest in investment. Cities such as Labrador, Yorkerdam, Rhodeport, Meyervile and Briselle all flourished as increased trade brought improved infrastructure along with significantly boosted industries. Soon banks, trading corporations and guilds flocked to Delamarian settlements, with Labrador becoming the largest colonial city as well as the largest financial centre in Argis. With the expansion of fisheries in the late 16th century leading to low food prices, an enormous increase in transadlantic migration was seen, developing Delamarian towns and cities greatly, with some comporable to those of Europa. Delamarian trade in the 16th century was dominated by the New Anglian Trade Corporation, later renamed the Labrador Trade and Commerce Corporation, which held a monopoly over several valuable exports, as well as being the largest lender in the colonies. The TRACOM (Trade and Commerce corporation) soon gained a lease for a portion of central Labrador, which over time became known as Tracham.
In the early 17th century, a speculative bubble formed around the fur trading industry in Delamaria. The abundance of fur-bearing animals, such as beavers, attracted intense interest from Europan traders, leading to a surge in investment and speculation. Traders and investors saw the potential in the lucrative fur trade, which drove up prices and fueled a speculative frenzy. The bubble resulted in a rapid expansion of fur trading operations throughout Delamaria. Numerous trading posts and outposts were established in the wilderness, greatly speeding up the settlement of the interior, where trappers and traders sought to capitalize on the demand for furs in Europa. The fur trade became a major economic driver, attracting both individual investors and larger trading companies. However in around 1632 fur prices dropped significantly and much of the economy was in ruin. A 23% decrease in transadlantic shipping to Delamaria is evident of the lack of economic interest, and many fur trapping towns were abandoned soon after. This is considered to be Delamaria's first recession and capital dried up, preventing continued settlement. Though soon after in the mid 17th century discoveries of rich veins of iron and silver improved interest, and soon trade continued much as it had previously.
Through the 17th into the 18th century, Delamarian agricultural output grew enormously, as new Anglian techniques and technologies significantly improved harvests that already produced a large food surplus in the colonies, this further inticed foreign settlers to run cheap land at a high profit. Delamaria came to support Great Anglia during the Anglian famine of 1730, though to a degree that prices increased drastically domestically, which temporarily boosted the agriculture industry, however later had a devestating effect once Anglian demand subsided, not to mention the poorer settlers who didnt work in agriculture, who often went hungry due to a famine elsewhere.
At this time the colonial governments embraced mercantilism, seeking to maximise exports, and have little dependence on other powers for imports. This was succesful and the economic output of Delamaria grew considerably, and attracted even more settlers. Early forms of capitalism began to be implemented too, as the large trade corporations began to trade their stock, something that would fuel the next era of economic development. In the mid to late 18th century the Delamarian colonies became independent of their colonial masters, this hampered trade for some time, however economic benefits outweighed the damage in relations, and trade began to recover soon after.
Industrial revolution
Delamaria was one of the first Argic nations to embrace the industrial revolution. This is because of the close connection with Great Anglia, the 'birthplace' of the industrial revolution, though it couldnt have come to fruition had Delamaria not had such large iron and coal deposits. This coincided with Delamarian becoming a united nation, which occurred gradually in the early 19th century.
The mining industry in Delamaria experienced significant growth and expansion during this period. The large iron and coal deposits provided the necessary raw materials for the burgeoning steel production sector.The largest mining operations were located in the middle states such as Pawnee, Chalnor, New Cheshire and Swansylvania. Industrialists recognized the strategic advantage of locating production centers closer to ports and cities, leading to substantial investments in steel mills and the development of railway networks. The construction of railways not only facilitated the transportation of raw materials to the production sites but also enabled the efficient distribution of finished goods to domestic and international markets. The railway infrastructure extended throughout Delamaria, connecting mining regions, industrial hubs, and major urban centers. These railway networks became the lifeline of the industrial economy, supporting the rapid movement of resources, products, and people.
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As industrialization took hold, bustling towns and cities emerged around the mining and manufacturing sites. These centers became magnets for workers, drawn by employment opportunities and the prospect of a better livelihood. Improved infrastructure, including roads, bridges, and utilities, accompanied the growth of these towns, creating a conducive environment for industrial activities. Steel production became a vital sector in Delamaria's industrial landscape, driving economic growth and providing materials for various industries, including construction, machinery, and transportation. The country's embrace of the industrial revolution propelled it into the ranks of major industrial powers, with Delamarian steel and other manufactured goods gaining recognition both domestically and internationally. The availability of steel fostered the shipbuilding industry, notably surrounding the city of Bodmonton.
Imperial and Georgian Eras
In 1852 Delamaria returned to being a monarchy, with an emperor, George Alexander I. This was followed by a short economic boom, fuelled largely by a more aggressive trade policy. The first emperor maintained much of the constitutional and economic norms, and the economy was largely stable, though agriculture had declined after a series of poor harvests. However after George Alexander's death in 1865, his son George Alexander II came to the throne. The new emperor had drastically different ideologies to his father, and advocated for an increasingly authoritarian regime that promoted aggressive expansionism. The economy soon crashed, as investment dried up, put off by the damaging rhetoric of the emperor. The country was on the edge of civil war, however an intervention by the prime minister with the support of the army forced the emperor to abdicate.
Following the abdication of George Alexander II, the nation faced an economic and political crisis that led to a decline in its global standing, culminating in the loss of Delamarian Daruwa. To restore legitimacy and establish itself as a prominent player on the international stage, the Imperial Parliament, later renamed Parliament, declared George, Duke of Dartney, as the new monarch. George I, who belonged to the House of Odell and was the grandson of William V of Great Anglia, initiated a Delamarian renaissance marked by cultural revitalization, economic growth, and increased living standards.
Under the reign of Queen Georgia, the Delamarian economy experienced a golden age. Embracing the industrial revolution, the nation became one of the most efficient economies in the world. By 1877, Delamaria boasted the largest rail system in Argis, facilitating the transportation of goods from mines to factories and major ports such as Labrador, Yorkerdam, and Bodmonton. Industrial cities, particularly in the middle states, flourished, with coal and steel industries dominating the landscape. The rise of industrialization led to the emergence of a growing middle class, challenging the traditional influence of the landholding aristocracy. Visionary industrialists like Rudyard MacDonald and Alexander Penville spearheaded ambitious public works projects, including railroads, steelworks, tunnels, docks, and canals, which further boosted the nation's economic development.
During this era, Delamaria also embraced imperialism, with Prime Ministers like Thomas FitzClarence spearheading colonization efforts in Alharu, Aurelia, Eastern Europa, and Thallassa. Although Delamaria's colonization endeavors were not on the same scale as those of Great Anglia and Lysia, they still brought significant wealth to the nation, fueling the economic boom and consolidating its position as a global player. The Delamarian government, in conjunction with major banking institutions, established a system known as Financial colonialism, which while leaving other lands independent, granted Delamaria significant political and economic access.
Early 20th Century
As the 20th century dawned, Delamaria faced calls for economic reform. Prime Minister Arthur Bycombe, a proponent of laissez-faire policies, saw growing opposition from a liberal movement led by Randolph Cabot. Evidence of worsening poverty under the prevailing economic system prompted demands for intervention. Bycombe announced his resignation before the next election, leading to a fierce leadership contest between Cabot and the Ledsonians within the liberal party. Cabot emerged as the victor and implemented a series of reforms focused on education, public health, and working conditions, aimed at improving the lives of ordinary Delamarians. However, the economic landscape faced a significant shift in the early 1900s. Delamaria's heavy reliance on exports to Great Anglia, particularly in the sectors of iron and coal mining, steel production, shipbuilding, and industrial equipment manufacturing, exposed the nation to vulnerabilities. The interconnectedness with Great Anglia, which had been a source of economic prosperity, now posed a challenge. The stock market boom and societal mobility of the late 19th century faced a new test.
By the 1910s, Delamaria's economy relied heavily on exports to Great Anglia, with key industries including iron and coal mining, steel and oil production, shipbuilding, and industrial equipment manufacturing. Delamarian industrialists maximized production efficiency, enabling their products to undercut Anglian counterparts in terms of price. However, the decision by the Anglian government to impose tariffs in an attempt to address their own economic problems had a devastating impact on Delamaria. News of these impending tariffs reached Labrador on March 21st, 1921, triggering a stock market crash known as Black Monday, even before the tariffs were implemented. Delamaria's industrial sector collapsed as Anglia, which constituted a significant portion of its export market, suffered economic turmoil. Unemployment soared, putting nearly 3 million Delamarians out of work. The government faced mounting criticism as the economic crisis worsened, leading to the formation of the first Social Labour Party government under Prime Minister Joseph Sternkey after the 1922 election. However, the Social Labour Party's tenure did not establish it as one of the dominant parties, and its inability to address the crisis resulted in a return to smaller parties. The socialist government initiated a series of nationalizations, starting with iron and steel companies, followed by rail, electricity, and oil. The aim was to enhance production efficiency and standards, resulting in improvements in the rail and mining sectors. However, the government's limited resources after purchasing these industries left little room for improving wages. In 1925, the unions associated with the Social Labour Party declared a general strike to protest low wages. The government lost the confidence of the liberals and independents, and another election was called. The Liberals returned to power in the 1925 election, with Prime Minister Vernon Peterham promising economic revitalization through the redevelopment of industrial cities. Despite efforts, Peterham's administration failed to achieve significant economic growth. Subsequently, Austin Madley assumed office, but he too struggled to deliver substantial economic improvements, although he did manage to lower food prices.
Nationalism and War
During the nationalist regime in Delamaria, which lasted from the early 1930s to the late 1940s, the country experienced significant economic and political upheaval. Led by Prime Minister Edwin Skye and later President Howard McMadden, the National party implemented extreme policies and blamed economic woes on immigrants, native Delamarians, and foreign conspiracies. Under the nationalist regime, the Delamarian economy faced numerous challenges. The country's industrial sectors, including iron and coal mining, steel production, and shipbuilding, struggled amidst a global economic recession. The nationalist government attempted to address these issues through protectionist measures and a focus on domestic industries. However, these policies often resulted in trade tensions with other nations and hindered international economic cooperation. While the nationalist government aimed to maximize production efficiency, the economic solutions implemented were controversial and faced criticism from both domestic and international sources. The regime's emphasis on nativist ideologies and restrictive policies led to the marginalization of immigrant communities and resulted in social and economic divisions within the country.
Additionally, the nationalist regime's economic policies created a volatile business environment, with frequent changes in regulations and limited protection for foreign investment. This uncertainty discouraged foreign businesses from investing in Delamaria and contributed to a decline in economic growth. Moreover, the nationalist government's repressive practices, such as the establishment of the Central Bureau secret police, caused fear and uncertainty among citizens. The political repression and human rights abuses associated with the regime further deterred foreign investment and hindered economic development. The nationalist regime's economic policies also had far-reaching social implications. The focus on nativist ideologies and the marginalization of certain groups, particularly native Delamarians, contributed to social unrest and heightened tensions within the country. The regime's discriminatory practices and mass deportations resulted in the displacement and suffering of many individuals and communities. It is important to note that the nationalist regime's economic approach had a significant impact on Delamaria's trajectory. While the regime's policies initially garnered support from certain sections of the population, the long-term consequences were detrimental to the country's economic stability, international reputation, and social cohesion.
The First Argic War, which occurred from 1949 to 1954, had significant economic implications for Delamaria. The country's participation in the war necessitated a reorientation of the economy towards military production, leading to a surge in industrial activity and employment. Industries such as steel, machinery, and armaments experienced substantial growth to meet the demands of the conflict. To support the war effort, the Delamarian government implemented measures like rationing and price controls to ensure resource distribution and maintain stability. These actions aimed to curb inflation and prevent scarcity of essential goods.
Following the war, the interwar period witnessed efforts to rebuild and promote economic growth. Infrastructure development and social reforms, including the establishment of the Delamarian Health Service and housing projects were prioritized. These initiatives aimed to improve public health, address housing shortages, and enhance living conditions. Despite these endeavors, Delamaria faced economic challenges during the interwar period. The aftermath of the war resulted in significant debt and inflation. The government implemented tighter spending controls to mitigate these issues and stabilize prices. Nevertheless, the economy gradually recovered, fostering a more favorable environment for businesses and investors. Infrastructure development and social welfare measures played a crucial role in improving living standards and promoting social stability. However, subsequent economic downturns and foreign policy setbacks posed new challenges. These factors contributed to political instability and changes in government leadership.
The Second Argic War, spanning from 1968 to 1974, had a profound impact on Delamaria's economy, particularly due to the extensive bombing that inflicted severe damage on multiple cities. The economic situation during this period was characterized by significant challenges and disruptions. The widespread destruction caused by the bombings had far-reaching consequences for the country's infrastructure and productive capacity. Major cities, industrial centers, and transportation networks suffered heavy damage, resulting in disruptions to manufacturing, trade, and commerce. The loss of critical infrastructure hindered production capabilities and impeded the flow of goods and services. The destruction of key industrial facilities and the disruption of supply chains caused a significant decline in manufacturing output. Many factories and workshops were either destroyed or rendered inoperable, leading to a sharp decrease in production levels. This had detrimental effects on employment, with a considerable number of workers being displaced due to the destruction of their workplaces.
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Furthermore, the bombings inflicted substantial economic losses in terms of property damage and financial resources. The costs of reconstruction and rebuilding efforts were immense, straining the already burdened national budget. Delamaria had to divert significant resources towards rebuilding damaged cities and repairing critical infrastructure, diverting funds that could have been allocated to other sectors or investments. The disruptions in trade and commerce caused by the destruction of transportation networks and the instability of the war further exacerbated economic challenges. Delamaria faced difficulties in exporting its goods and importing essential resources, resulting in reduced trade volumes and supply shortages. These conditions contributed to inflationary pressures and further strained the economy.
Reconstruction
After the war the Social Labour government decided to continue policies of nationalisation, with much of the country's major industries in state control. This was reasonably popular as government intervention was seen as a modernising force that could maintain wages and adapt the industries to be more profitable. However by 1975 the economy suffered a massive crash, alike that of the 1920s. As the government owned the country's major industries it faultered on brankruptcy and the liberals in government urged the Social Labour Prime Minister Harold Pockmark to sell off the nationalised industries, however Pockmark was committed to state control of the economy, and insisted that government intervention would revitalise the economy. This policy failed, and soon after the nation's reserves were near depleted. A rise in oil prices in 1976 put even more pressure on the economy and Pockmark was forced out of office.
Pockmark's successor Henry Keyes was determined not to allow the country to go bankrupt, and sought foreign loans. However government income failed to rise to sufficient levels and the short-term, high-interest loans that Keyes took out were unaffordable. Delamaria soon defaulted on its national debt on May 17th, 1977 causing a huge recession. Popularity of the government hit an all time low and protests began in major cities, with clashes between pro-privatisation protestors and pro-nationalisation strikers. Soon after in 1978 an election was held and Elizabeth Grantham became Prime Minister.
Grantham worked closely with President Conover to reimagine the economic system that was seen to have lead Delamaria to its then devestated and declining economy. Emerging monetarist ideas were turned into government policy, and Conover-Grantham Economics was born. This began with an initial wave of privatisations, returning the major industries such as steel, oil, energy, utility and transportation to private hands. These sales generated enough income to significantly reduce the national debt. Grantham believed that the economy should be allowed to develop naturally, based on what businesses need to grow. Taxes were soon cut drastically, as were regulatory bodies. In the immediate aftermath of this 'economic revolution' unemployment remained high, as though many were returning to work, newly privatised businesses also saught to reduce costs by cutting excess labour, leading to a smaller margin of victory for Grantham in the 1982 election. However soon after the economy began to boom, as tertiary service industries came to dominate the country.
The Grantham government however faced some public pushback, as post-industrial areas didnt benefit as much as other areas. The middle states especially saw industry leave the area, with little reinvestment. To counter this the government created several systems of subsidies and incentives to invest in post-industrial areas, which aleviated much of the unemployment problems.
By the late 1980s economic growth had slowed, however Delamaria was a far more developed country, with the destruction of the Second Argic War creating a slate for modern developments which made Delamaria a competitive glubal economic player once more. Economic output had more than doubled and the general consensus on how an economy should be succesfully run was forever changed, with her administration generally seen as successful in rebuilding the post-war economy.
However the middle states and the north of Delamaria continued to fall behind the progress of the southern states, and the divide between the wealthy and the poor grew. Medium sized towns saw increased unemployment and crime, despite reinvestment strategies and a national surplus of jobs. Grantham resigned in 1989 after a series of scandals that damaged her party's reputation, John Carroway came to be Prime Minister on a platform that Delamaria required cultural change if persistant economic problems were to be overcome. However Carroway had but a year to fulfil these promises, and lost the 1990 election to Stephen Milbank, a liberal who pushed his party to be more supportive of Grantham's low tax, low regulation economic model. Though he saw the budget surplus as something to be spent rather than redistributed through tax cuts.
Modern times
The Milbank government continued many of the policies of Conover-Grantham economics, leading to the famous poster Why does my lemon taste like blueberries?, however the liberals instituted a number of reforms, including large investments in education, infrastructure and economic incentives. The Milbank government aimed for break-even budgets, where the government would only spend what it had, and all it had, in order to prevent debt, as well as to improve public services.
