So, here are some screenshots i've taken from the beginning of the game to show what I mean.
First image: The options for the campaign I started. 1890 Germany, Legendary Difficulty, Historical AI, Design my own fleet, no shared designs
Second Image: This is a view of just before I started the campaign. I have 16 ships under construction. Monthly Balance -$1,033,185 and Naval Funds of $11,650,650.
Third-Fifth Images: Here is a view of the navies of other countries navies. Britain has 54 ships and is building 26. China has 73 ships and is building 22. France has 42 ships and 23 under construction. Italy has 72 ships and 12 under construction. Spain has 73 ships and 9 under construction. Russia has 64 ships and 11 under construction. The US has 58 ships and 5 under construction. Japan has 61 ships and 14 under construction. Austria-Hungary has 39 ships and 36 under construction.
Sixth Image: This is how I have my budget allocated. 100% into TC. 100% into TB. 50% into CT. I could lowe Tech Budget and Crew Training but it would not get me much more than I have. I have 300 tons of shipyard capacity under construction, which is a bit of a waste.
Seventh Image: This is after I started the campaign. I'm even more in the negative on Monthly Balance now. Still in the negative even when my ships are put into Limited status.
All in all this puts me in a tight spot. I am a country surrounded by countries that will progressively hate me more and more, and will inevitably lead to war. They all have navies much larger than mine. Even with money repurposed from my sliders I couldn't match their numbers. I have to keep my money in Tech and Transport to try and grow my economy and outpace them via technology. Match their quantity with quality. But the economy grows so slowly that it makes that even more difficult
On lower difficulties this is no different. The AI still builds more ships than you could possibly build even without the bonus income Legendary Difficulty gives.
I'm not against economy changes, but this is too much of a change. The starting budget isn't the biggest problem but it is a big problem. The GDP growth is the biggest problem. It is simply too small and grows too slowly