Russlands kriegsgetriebene Wirtschaft ist so erfolgreich, dass die Weltbank es zu einem „Land mit hohem Einkommen“ hochstufte
https://www.businessinsider.com/russia-economy-world-bank-upgrade-high-income-country-war-sanctions-2024-7#amp_tf=From%20%251%24s&aoh=17204585996634&referrer=https%3A%2F%2Fwww.google.com&share=https%3A%2F%2Fwww.businessinsider.com%2Frussia-economy-world-bank-upgrade-high-income-country-war-sanctions-2024-7
39 comments
Fuck Russia
High income for china maybe
Russia under Putin spent years amassing budget surpluses from oil and what not and has essentially blown through the majority of it in the last two years on military. This does increase incomes and GDP, whether it’s sustainable or good is another question.
I do actually wonder how much of this average salary increase is due to the relatively high pay of soldiers.
This article doesn’t really get into the significant negatives that arise from war economies over the long term in the modern era. After all streamlining every sector of your economy towards a war that will ultimately devour products/lives in exchange for nothing is not sustainable.
Only reason why it worked centuries ago is because after wins the winner could take gold, resources, spice, etc and sell it at significant profits.
All driven by war and the hope of looting ( the regions they want the most are those where they found massive oil and gas reserves just shortly before the start of the war 2014)
Its like the Nazi Economy and other agressors in history. They cant stopp by this point. Even If they would win and occopied the land should they stopp there their Economy probably still crashes even If they loot all the wealth.
So If we dont Stopp them hard by supporting Ukraine even more we have the next war and the next until they are stopped.
It’s a bit like saying cancer is a great diet plan, sure you’re getting into shape in the short term but the long range outlook is really bleak.
Bound to happen, the government is employing a huge amount of people on wages well above the average. Only drawback is they’re spending all that money on stuff that’s being destroyed, colossal waste of public money and completely ruining their domestic industries.
This is why people thought that Fascism was the wave of the future in the 1930s.
During the Great Depression the Fascist economies in Italy, Japan and Germany seemed to be booming while the liberal democracies languished, but it was all due to the Fascist governments engaging in massive deficit spending to build up their war machines, with the theory that their militaries would then be used to seize resources and labor from other countries which then could be used to prop up the home country.
Of course, a tank can’t plow a field (despite how hard the Soviets tried) and a gun can’t build a house, so the system only worked for a while before it collapsed in on itself.
What happening is similar to the Dutch Disease effect. The short term boom of a sudden influx of cash into one dominant industry in an economy boosts GDP values and looks good overall. However the long term effects are quite negative. The dominance of one industry (defense in this case) sucks up all the capital in an economy and causes the rest of it to stagnate and decline. Combine this lack of long term investment in productive tools for the economy with Russias demographic declines and it’s not great for them in the future. They may have a short term win (in the grand scheme of these things think a few years) but expect to hear about more and more cracks forming in the foundation of Russian society as time goes on.
A lot of that income is Europe buying gas from Russia. Shameful.
Dead soldiers, idiocy and war crimes seem to be profitable
Let’s make those things the opposite of profitable
…yet Russia is dropping in the GDP rankings?
Economists love unsustainable spending fueled by war as it depletes a countries long term prospects.
Walking Ghost phase of a country’s economy before the delirium and diarrhea
Ah, yes, Russia’s doing so well that Putin is bagging NK for help.
They were also just downgraded from a top ten highest econ last week
This article is stupid
It’s hot because they are burning their economy down for this war.
More sanctions.
I just watched a video where billions of dollars in russian equipment is getting destroyed by drones that cost under 500 dollars to make. Apparently they don’t use the hatch on the tanks either and the drones are able to drop american grenades into the hole with shockingly good accuracy.
War economies prioritize of military needs over civilian consumption. In such economies, a significant portion of resources—such as labor, capital, and materials—are diverted away from the production of goods and services that satisfy the everyday needs and desires of citizens to support the war effort. GDP may look good, but civilian rationing, unavailability of consumer goods and a a failure to provide human wants and needs make that an illusion.
Sabotage their fk oil refineries, blow them up
Russia spends its reserves on the war, thus due to higher expenditure, has higher GDP/growth. The spending on consumable weapons and stockpiles does not benefit the economy past the point of consumption. Unlike infrastructure projects.
Meanwhile Western centrists will tell me that austerity is the only way to have growth.
Ah yes gdp growth due to producing shells truly is a way to prop up your economy just like digging a massive hole and then filling it up again for 20 billion dollars is.
There is an economic thought experiment where you ask if breaking a window increases a countys gdp. Youll need to make a new one and install it, which in fact does.
This is practically what a war economy does. It looks great on paper, until you either look at the total government balance, or think a moment about the opportunity costs involved. And this is all without mentioning the loss of a generation of young men, and the horrors of war the survivors will be dealing for decades to come, win or lose.
What’s the criteria they are using here? Their GDP has dropped, and the ruble is still quite a bit below it’s pre-invasion value.
So what is driving this? Is it because their unemployment rate is suddenly almost zero? That’s all I can think of.
This is evil and so is the accompanying photo.
Sounds like Russian chat gpt writes more headlines.
Wasn’t there literally an article posted like 2 days ago that said russias economy had fallen out of the top 10 in the world due to the war??
Haha the World Bank is a joke, like of these „ World Organizations „
Don’t forget to register for Selective Service.
Russia has turbo-charged its military industry. Final product of military industry is military equipment.
Russia is losing its military equipment at an astronomical rate.
It’s not sold to make revenue, it’s quite literally burning in the field.
To put a layer of abstraction – a country has industry whose final product is being burned by the compensation paid by the government.
I don’t know who the hell called THAT a high-income economy…
It’s a bit like blowing your social aid cheque at a roulette table and being called a “high roller”
The 34th rule of acquisition: war is good for business.
Sustainability is more important than raw GDP etc numbers.
This works well when you’re actually stealing from occupied lands…till you can’t anymore. Then it all comes catching up to you.
That’s why it seemed like Germany was on a roll. Till they stalled out and couldn’t steal anymore gold, money and assets to pay themselves for the war and they quickly crumbled.
Same with the Japanese. As soon as they lost their main source of oil they quickly lost large swaths of gains quickly.
USA was cheat code for ww2. It was literally a giant continent in size that literally had everything and was “unclaimed” till humans had toiled in the rest of the world to figure out how to ulitize it before setting the whole of the USA. O. And USA has access to all materials needed to make all their own stuff. Then when ww2 broke out its basically a never ending relatively unmolested supply line to the allies with never ending ammo, armor, planes etc.
Hell we sent so many tanks over at the end of the war we did an audit to “take back the tanks” and the pentagon said it would cost more to bring them back and moth ball so we just let them set in European depots.
Production figures don’t usually include destroyed goods (or people). That’s why economists joke that we just need to increase natural disasters and wars to make headlines (and Paul Krugman) write cheerfully optimistic headlines.
Think of the dead weight loss that went into raising every person killed. Unless that person is someone who, like Yahya Sinwar, brags about the people he strangled to death, that’s a loss to society and the world.
They learned the american way
Wars are always about robbing people.
What’s the use of a “great economy” if all of the young men in your society are dead or soon will be?