Here's my thinking. BV/BC is just a reference value. BC = cost of buying things/cost of buying 1 IC to use BV = value that goes to your GDP So a BV/BC == 1 does not actually mean "100% efficiency," just that you are at the "default" level. Since government spending counts as investment and thus towards your GDP, you will not see a "deflation" from buying IC for value: the relationship only indicates the "added" value the IC contributes to the economy. Hence only Base Value is necessary to reference for investment efficiency. Base Value > 1 means positive ROI, and Base Value < 1 means negative ROI. GNP will be Base Cost + Base Value. Ditch digging is hungry work. "Why don't I just invest a million EP then and increase my GDP to a million?" You can! Well, you can try. It probably won't be pretty, though, and your Trade Group won't like it either. Plus, this will make the rest of your economy worthless and then people won't be able to buy things. Your remark had me go back and check and I tweaked the algorithm for determining IC demand, so the Base Costs have shifted once more. Private IC demand now scales according to tax rate rather than Mobilization, as it was before, so your private sector will still demand industrial goods as long as they have the money for it even if the government owns the IC.