Will Russian Economic Recover After This Blow?
A Kursk Update!
About the war economy:
It's started shrinking right now it's at its peak going down but the other economy the Civil economy, oh my gosh, there's so many problems with that. So basically the two results are Russian economy is shrinking and it will be shrinking for a long very long time it's not going to recover. I would say for generations, generations on Russian people are becoming poorer and poorer.
And that's what the Russian economy is looking like.
I hope all this stuff is true, but I’ve no idea of the credibility of these sources.
Konstantin who made the video above is a Russian economist. He can follow Russian economy, even if he now lives in one of the -stans (Tatarstan?)
My own thoughts goes like this:
- Russia's growth of BNP is officially something like 2-3% according to Moscow numbers.
- Russia's growth depends on the war industry, which has grown (Russian numbers) by 17%. This means that the normal "normal industry" has shrunk. There is not enough of workforce and they can not find enough different parts so that the machinery of their industry can run smoothly and also problems with the production of goods that the industry should produce. It is the sanctions, the banking problems when they want to export and so on.
- So let's look at the BNP: If a Russian guy build a house the BNP goes up and if it burns down - that does not affect the BNP. He builds a new house and again the house burns down.
Let us think that some 5 million people are working in the war industry. BNP goes up. But when the result of their work explodes, burns or whatever type of destruction happens to it - that does not affect the BNP.
To make this clearer; let us think that 5 million people builds houses and then burns them down. What happens: The politicians tells how much the BNP has gone up, and how good politicians they are "in these hard times".
Two things are guaranteed: The people will pay and the war industry is a burden for years to come. The best example of this is/was the good old USSR: Weapon was produced as the mothers had a shortage of simple kettles.
So should not the same happen to USA?
NO!! Because USA is selling (Lend & Lease or something in these lines) old stuff to e.g. Ukraine. Stuff that it does not need anymore from the 80ties and 90ties.
Like this: Congress "gives" or lends money 10 billion. 10 billion of stuff that the army does not need anymore is sold to Ukraine and Pentagon gets the money. Pentagon buys new stuff from American factories - with that money for the US Army.
Brilliant! The money that Congress "gave" to the Ukrainian military never left USA!
And the politicians can brag about how many new work opportunities they created. And the workers pay taxes - and The Apparatus can throw more tax money around like confetti (to their friends and partners).
And the really good business goes like this:
- US war product manufacturers can test their products in a real war => better weapon systems => More weapon systems exported abroad - more money for everyone, mostly to the confetti guys.
There was a global military expo last winter. According to the newspapers, Russia did not get even one single contract. But I am sure that USA had more potential buyers than ever.
War is a business, but not totally bad. It is even good and needed as the (almost) free world fights against nazis and dictators.
(My personal views on this subject. I am sure that you all have other views on this but let's concentrate on thinking how we will ____________ different dictators and get peace.)