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Having a Wasteful Economy is a situation where the laws of a nation lead to decreased worker motivation and output, decreasing the GDP by 11.2% to 13%.

Wasteful economies are caused by policies and not low Productivity (though low productivity is often a side effect of the policies). High rates of Unemployed Benefit, extensive Maternity Leave, and Labour Laws that favor employees will increase the likelihood of a wasteful economy while Technology Grants will decrease it.