
My economy exploded (good)... then exploded (bad)... then exploded (good)
So, doing a Canada game. Super fun. Decided to stay as dominion. I was able to get multiculturalism early, so I've been industrializing like crazy and get tons of migration. I had the highest GDP and highest GDP per capita in the world.
I had high level institutions, very high loyalists, etc. Business was booming! Most of this time I had a small deficit, but in the 1890s it began to balloon. But my credit was so high and my GDP was growing, so I wasn't concerned about it.
At this point it was a bit after 1900--I decided it'd be a good idea to request market control from the British. Bad idea. Instantly my GDP was halved to be about 250 million.
Then my deficit began increasing rapidly. The reason it began really ramping up in the 1890s was that I had absent-mindedly passed Old Age pensions. This was fine until I ramped them up to be level 5. At their peak, I was sending out 2.5 million a week in pensions. I did not catch this for a little bit.
My initial reaction to the huge deficit and GDP loss was to hold steady for a bit and get some trade agreements set up--hoping that we could import what we need. The buildings did import what they needed--but the deficit did not go away and the GDP kept eroding.
So I then started to kinda hit the panic button. Added some extra taxes. I tried to trim the fat in my budget (obviously not my 2.5 million welfare payments, though), so I decided to... cancel my subsidies on several building types... primarily the railroads.
This lead to the complete collapse of my railroad industry, which decimated my infrastructure in every province and ruined my market access. Small-scale famine began in my Northern provinces since they couldn't import any food.
AT THIS POINT... I finally realized the dang welfare payments were tanking me. I started downgrading the institution, but I had reached my debt cap at this point. I then went to my government and pushed for wage subsidies, which has a lower payout cap than old age pensions. This passed after a bit of time.
I declared bankruptcy and then very carefully micromanaged my economy for several years, rejoined the British market, and fully have recovered.
I went from 500 million GDP with a 25 SOL to 50 million GDP with a 7 SOL. I have since recovered back to 500 million GDP with about 23 SOL.
Since taking this screenshot last night, I actually shot up to 1 billion GDP!