So, have I understood this right: Making money by using natural resources, buildings, etc etc, is good in the long term, but is a slow way to make money and won't give you enough to build a full-stack army if your homeland is attacked. So, the player would then jack up tax rates to get a short-term cash injection. However, the act of doing this makes, in real terms, the populace of your country poorer and poorer, which leads to a lack of spending from them thus screwing up your building/resources long term economy and causing unrest from the vox pops at the same time? So, the player must strike a balance between "real" economics and quick-buck "taxes" that give you money but screw the economy?
If that is right, then that is bloody brilliant. Did I get the point? Have I missed anything?