This one has been thrown around quite a bit - and I'm still not sure it's actually working in a way that makes sense. I know that Kael and Xien have both made changes to it in past versions - one of which will have caused the display to be off I think. The current version (the way it works, not what it displays) is effectively +1 Hammer for every member of the population, + extra hammers for any building that annoys them. The other way (which I actually think would be the correct way) is that there are a certain number of citizens who are so unhappy that they refuse to work (the citizens over the happy cap). The Governor's Manor forces these malcontents to actually do some work - even if it's only a single hammer each. ==== That aside, if it were to work in the second way, it would need rebalancing on the points that you mentioned. -40% Maintenance (same as Courthouse), -25% War Weariness and removing the +1 Unhappy altogether should do the trick there.