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Yeah, the 1880-1900 income drop among capitalists is well known. Usually, it's attributed to automobile/aeroplanes/radio factories: as new industrial techs are researched, pops have new needs, especially the above mentionned luxuries in mid-to-late game. The problem is that, by the time the capis start buying cars, the production is just too low to meet the demand, resulting in very high prices. As they spend more money on luxuries, they stop stockpiling cash and building anyting.

To get out of the deadlock, (by staying liberal: the obvious way is turning socialist) you need to produce luxuries. VIP solves this with factories-building events, which would trigger at this time, and allow you to set up a working automobile factory.

Should this be impossible, you can always try the steamer_firesale_subsidies technique, eg stockpile a lot of steamer_convoy, and selling them 2 days before the end of the month. The capis income will skyrocket on the next day, and as the next month starts, they will invest the money. There was a greek AAR around, where someone managed to have his 1K strong capitalist pop in Athene spam an insane amount of factories this way...

On a sidenote, negative tarriffs never worked out for me. There has been a lot of talks around about the fact pops actually gain money this way, but it never seemed very conclusive.