-Exterminating populations is not necessarily bad for your general's traits. It could get you the Genocide trait (makes general a better looter) or Bloodthirsty (raises morale).
-However, an Unselfish general might have some pangs of conscience after doing this, which make it hard for him to get a restful night's sleep (making him a worse manager and not be as healthy).
- Generals with the "Lenient" trait will become unhappy with their ruler (you don't want your general to get this--lots of negatives to morale, bribing, tax collection, law, and influence!).
- Your general may become "Brutal" (makes him move further, be better at enforcing law and order, raises morale, makes him a better looter, and better at tax collection, but does have a slight unrest penalty).
So, think about your general's traits before you click "Exterminate". If he's an energetic or selfish guy, he won't lose any sleep over it.
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