hmmm...while I do think my morale bonuses do seem lower (i really should be testing with facts and figures- ive just been more concerned with the raw ability to play the game so far) i'm not having the econ issues you seem to be experiencing, nor does the majority of the AI in my game.
ok: Tested at Tough Difficulty across the board
Dread Lords- Altarians- Class 12
Morale 30, Econ 10
Income 29, Spending 6, Maintenance 1
Approval Rating at 59% Tax Rate: 53
Dark Avatar- Terrans- Class 10
Morale 30, Econ 10
Income 22, Spending 6, Maintenance 1
Approval Rating at 59% Tax Rate: 60
Twilight of the Arnor- Iconians- Class 14
Morale 30, Econ 10
Income 24, Spending 5, Maintenance 0
Approval Rating at 59% Tax Rate: 58
Observations: Dark Avatar obviously has the best morale since Earth doesn't even get the 10% high PQ bonus and yet still manages to have the highest approval rate even at a higher tax rate. But DA also has the lowest starting income and of all the versions. This means DA is especially powerful for the Krynn and Torians, as both races can manage exceptional population growth (due to high morale) that is harder to acheive in the other two versions.
But in any case, this really shows that, at least at the start, Twilight isn't that much different from the other two versions. The big thing in TA that's been said over and over by Brad and players is that it takes a MANAGED start, not the rush that was so common in DL and DA.