Teaching Paradox: Hearts of Iron IV, Part IVa: The Fires of Industry

This is the first half of the last part (I, II IIIa, IIIb) of our series looking at the vision of history advanced by Hearts of Iron IV, Paradox Interactive’s World War II grand strategy game and one of the most popular strategy games on the market today.

In the last part (split over two posts), we discussed how HoI4 models domestic politics and ideology. In both cases, game design considers – in particular the desire to streamline domestic politics to highlight the military aspects of the game and the desire to simply avoid the topic of crimes against humanity altogether – congealed to create a game that fails to accurately represent the history of the period and worse yet errs in a consistent direction. On the one hand, the simplified political model, combined by a game design ‘need’ to make the Axis powers ahistorically strong, leads to a political system that values state power, is unconcerned with the role of regular people and in which authoritarian government forms offer the player more freedom of decision without any drawbacks. Meanwhile the game actively avoids discussion of any of the real human costs of those ideologies, unintentionally producing a game that functions as a ‘clean Wehrmacht myth’ simulator.

In both cases then, the game – unintentionally, but forcefully – reproduces World War II as authoritarians would like to imagine it, rather than as it actually was, doing some violence to the historical record in a way that is also frankly irresponsible in the present moment as well. To be clear, in these sorts of questions, I believe the truth is an absolute defense – history is often unpleasant to modern eyes (and past ones too) – but this depiction is not accurate.

Now, as the series comes to a close we turn to Hearts of Iron IV‘s industrial model and strategic ends, the former this week and the latter next week. It may seem strange to group these two topics together, but the strategic ends of the aggressor nations were fundamentally rooted in economic objectives. To put it in the classic formulation, World War II was a war for resources. And while the Allies fought to preserve the status quo, rather than obtain new resources, the nautre of their post-war competition, between the western Allies (soon to be NATO) and the Soviet Union, was also fundamentally economic with one of the core ideological bones of contention being whose economic system could better provide prosperity in a post-war world.

Unfortunately, in this realm as well, Hearts of Iron IV stumbles in much the same way it did in the last part: the effort to streamline everything that isn’t the operational simulation means that HoI4 ends up accepting as true many of the fundamental premises of the Axis powers, despite the fact that the rather resounding verdict of the war (and the subsequent Cold War period) was that these assumptions – that centralized state direction was efficient, that autarky was a viable economic strategy, that it was better to dominate than to trade, that highly militarized economies could durably sustain national power – were false.

In an effort to give the Axis a real chance to win the war, HoI4 is forced to assume that Nazi, fascist and militarist theories about the economy were correct – the very thing the war itself so decisively disproved.

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We should start by laying out the basics of the game’s economic model. Unlike previous Hearts of Iron games, which represented a country’s industrial might with a single ‘industrial capacity’ number, HoI4 splits industry into civilian factories and military factories.1 Civilian factories build other buildings – infrastructure, railways, ports and other factories (both civilian and military) – and a portion of them are reserved for ‘consumer goods.’ Meanwhile military factories build military equipment: rifles, tanks, aircraft, etc. There is a third category, dockyards, which build ships, but we’ll leave them aside for now except to note that they function more or less exactly like military factories save for what they build.

It is possible to convert factories from one type to another (meant to represent the sort of plowshares-into-swords crash mobilization of the US, UK and USSR’s economy) but almost never worthwhile, to the point that this conversion is almost a dead mechanic.

Unsurprisingly, given the game’s focus, there is quite a lot of granularity in military production. Players set up ‘lines’ of production for specific equipment and then assign a certain number of factories to that equipment. Military factory efficiency (‘production efficiency’) scales up over time as long as they are producing the same thing, to represent process streamlining and impose a penalty for the kind of rapid design switching that, for instance, Germany engaged in. Produced equipment goes into a national stockpile (which exists on a balance sheet, not anywhere in the world). The player then trains division templates which demand the equipment being produced and it is automatically shifted to those divisions (generally during the training process or when they take losses; it is rarely worthwhile to deploy a half-trained, half-equipped division) as needed.

In addition to factories, military production also demands raw materials (aluminum, rubber, tungston, steel and chromium), with sharp speed penalties for missing ingredients. All factories also require coal to operate at full speed (and oil is converted into fuel in a system that we needn’t get into here, though it does matter a lot for operational planning).

Finally, it is worth noting there are two mutually exclusive pathways for industrial technology, which apply significant bonuses; in practice researching these technologies as they become available is effectively mandatory for nearly all countries. Concentrated Industry, representing the approach of the United States, United Kingdom and Soviet Union, offers 5% more raw factory output per level, while Dispersed Industry, representing the approach of Germany and Japan, offers better production efficiency and strategic bombing resistance. For quite a while now, dispersed industry has been the ‘meta’ choice, which as discussed below is a bit baffling as it was very clearly the less effective approach during the war itself.

Each equipment type is thus its own individual line which needs unique management. A minimally capable army is likely to need at least production lines for infantry equipment, support equipment, artillery, anti-air, anti-tank, tanks, trucks and at least a few kinds of aircraft so at minimum that is around 10 different production lines, each with its own set of assigned factories, unique resource demands (which may need to be traded for, see below), variable production efficiency and so on.

The military industrial production side is thus a fairly complex game of anticipating equipment needs in advance and assigning factories – allowing due time for them to gain production efficiency – to maximize the production of the equipment that divisions need, in the ratios they need it, when they need it. If I expect, for instance, to be at war by 1939 (as in the Britain playthrough we’ve been doing screenshots of), I am going to workout my intended army size, quickly math out the required amount of equipment on a piece of paper and then proportion my production accordingly.2

Gameplay-wise, it is a neat system which encourages player to think ahead and is, ironically, one of the closest systems to actually force a player to actually think about their doctrine in the real sense of the word: trying to predict how they will need to fight and then building the equipment to create the kind of divisions appropriate for that fight.

By contrast, the civilian industrial system is extremely simplified – streamlined might be a more generous term.

Civilian factories, as noted, build other factories (including other civilian factories) as well as a number of other buildings (forts, infrastructure, ports, railways, etc.), but our main focus here is on their role building factories. Apart from the coal all factories require to run, civilian factories consume no resources and they require far less management. They do not gain in productivity over time working at the same kind of project, instead always being perfectly interchangeable with each other. In practice, the player merely creates a priority list of projects and the civilian factories get to the job of marching down the priority list in order, one by one, with up to 15 civilian factories per project.

Civilian factories are also responsible for consumer goods production. The number of factories required for this is determined by adding military and civilian factories (but not dockyards) together and then taking a percentage of that total: that number of civilian factories are then removed from use, serving to supply the civilian economy. Unlike in previous Hearts of Iron games, where civilian industry put to civilian use generated money (representing tax revenues), in HoI4, mechanically, consumer goods represent wasted production. We’ll come back to this, but for now mechanically the player cannot allocate more factories than required for consumer goods, nor is there any benefit at all for having more consumer goods producing factories.

In Hearts of Iron IV, consumer goods production has no value: it does not impact stability or war support or politics. Notably, consumer goods production is entirely independent of civilian population: factories do not really consume any labor nor do they actually feed, cloth or house anyone. Instead, consumer goods function as a ‘tax’ to suppress the production of certain countries (the pre-war democracies, generally) and to prevent a player from focusing entirely on military production. In the latter case, as a player builds out a military industrial complex, the number of total factories (and thus the consumer goods requirement) rises, leading to fewer and fewer civilian factories free to build more military factories.

Civilian factories are also ‘spent’ to gain raw resources (for military factories) via trade, essentially transferring one civilian factory per a set number of units of raw resources (usually 8) transferred the other way.

One missing element you may have noticed is labor: labor is barely simulated at all. At most the effect here is expressed through conscription and mobilization laws, in a relatively blunt way. The highest economic mobilization law (‘total mobilization’) reduces the recruitable population (with a 3% modifier), reflecting military-aged men kept in the factories, while the highest conscription laws (‘service by requirement’ ‘all adults serve’ and ‘scraping the barrel’) lower factory output to reflect the labor shortages they generate. Notably, both of these effects happen regardless of the number of people in service or the number of factories: a country with Service by Requirement suffers its 10% penalty to factory output even if it has no army at all and a country on Total Mobilization suffers its 3% penalty to recruitable population even if it has almost no factories to absorb those workers.

As is consistently the case with Hearts of Iron IV‘s design, civilians do not matter very much: not for politics, not for war, not ev