by Shadowdale:
NO there is absolutely NO reason to build palaces - well not unless the AI keeps buying your cities
- then you might want to move your capital a bit closer so that it will cost more - but I have yet to experience the AI buy more than one city in a game!!!
Depending on one's commitment to early Democracy, and proximity to the Capital, there is a case worth considering for moving the capital.... the SSC. If Corruption is very high, yet the city is churning out lots of trade... the move can pay for itself. However, plain it properly. Don't build a courthouse and then decide on moving the palace.
Remember, the 100 shields (just under 200 gold for a rush buy) is sunk (lost) assets... that't because the city that loses the palace gets nothing in return.
You must carefully consider the rest of your Monarcy/Republic, too. You may wind up offsetting your gains with additional corruption elsewhere. If your not experienced in using "windage" to decide... then you probably should not bother moving the capital.
a good thing is to change the production so that the city doesn't get any extra food because you might end up building 10 settlers to move a size five city!!!
I kill some of my own cities in every single game, except OCCs. I have a complex set of rules for determining if and when which ones get the axe, but I will say this... nation building is expensive, and I prefer to have a stong Democratic economy to do it. It costs up to 160+25+25=210 gold per turn to reduce a city. I personally don't like wasting citizens, and usually pay to get convert them to Engineers because I'm chronically engineer-short, esp. in Late Game.
You can stop instant growth of a democratic city by getting a red or black face in your happiness line, or having no excess food, or by having less than 50% happy dudes, or by being size 2 or less. For size 5 and above, I just make Taxmen and choke off the food. This also helps pay to reduce the city to a pile of Engineers...