I can sympathise with the fustration and the difficulty of managing morale. I've played the os2 version and participated in the beta, and it is still a challenge.
There is no single path that will give you an acceptable morale due to the number of variables. The only encouragement I can give is to keep working at it and try different approaches.
To conceptualize how to do this, I find it usefull to compare it to a simulation of earth. The various aspects (ecomony, morale, research, etc) of the game can be compared to real life behaviour, for exemple;
The economic model the game use is similar to how Greenspan forcast the US and world ecomony.
Morale is similar to the consumer confidence index (Michigan state U), which is not 100%.
Research is similar to the benefit of education in developping contries UNHA.
Unfortunately, to some the effort required may be like school and will not invest the time to understand the mechanic of these, In my opinion, the satisfaction derived from winning a cultural or alliance game or even beating the shit out the Dregins, is worth the necessary learning.
~SDC~