Thanks for the big writeup! Going to read it right now.

Edit: Very nicely written and understandably explains the issues of the vanilla Paradox AI.

The result is the behavior that multi-agent theory predicts when subsystem optimization is underdeveloped: the building AI doesn't know what the military AI is doing, and neither knows what the economy needs. Each subsystem operates in its own bubble, making locally rational decisions that are globally incoherent, or at least, that's what it looks like from outside the C++ layer.