SimCity and Urban Planning/Tax and Money

Financial considerations are important in both real life Urban planning, and in SimCity.

Fiscal Policy in real life Government

Fiscal Policy is the economic term which describes the behavior of governments in raising money to fund current spending and investment for collective social purposes and for transfer payments to citizens and residents of the territory for which the government is responsible. The money may be raised by taxation, by borrowing, by user charges on social assets or services, or by fiat. (On the last, the government declares a particular token to be money and demands that it be accepted in settlement of debts.) Fiscal policy can include deficit spending to stimulate demand for domestic goods and services to rise (to fight unemployment) or efforts to cut deficits or raise the budget surplus to fight inflation.

Budgets in SimCity

In the game SimCity, as in real-life, balancing budgets is an important role of the mayor. Financial considerations are important when planning out your city. As the mayor of a SimCity, you raise money for explaining your city through taxes, ordinances, and loans.