Lol, wealthy Russians used to spend money in Europe but because of sanctions they are forced to spend it in Russia. The travesty!
It’s a war economy, but it will be short lived. They are killing the cream of their youth and they are in a demographic crisis even before that.
If they manage to win in Ukraine they will still emerge as a vassal of China.
Well yes, you dramatically reduced the male working population. So there’s a labor shortage which boosts wages.
However the inflation here lags, especially given the trade restrictions. Also they’re embracing knock off pirate versions of many of the banned things. Which offsets inflation near term, but the quality should be a lot lower. Who knows any more with the corporate total lack of giving a f about consumers.
In short either inflation is going to spike or they’re already lying about it (which given they are claiming it will fall next year seems likely)
People forget that Russia has domestic production. People in Russia buy products made in Russia MASSIVELY more often than Americans or Europeans do. While this shows up as lower GDP given currency conversion, when considered through Purchasing Power Parity, Russia’s economy is quite strong. Getting paid a dollar an hour and buying a 1 dollar chair is the same as being paid 30 an hour and buying an identical chair from the point of view of a consumer or producer: at the end of the day, economics is a local topic of how the actual participants are affected. Russia’s economy is not well viewed through a lense of GDP – they do not see GDP as a variable to maximize, unlike the G7.
I’m not surprised. They are experiencing a high amount of inflation. Spending money sooner rather than later makes sense, because later the money will have less value.
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Lol, wealthy Russians used to spend money in Europe but because of sanctions they are forced to spend it in Russia. The travesty!
It’s a war economy, but it will be short lived. They are killing the cream of their youth and they are in a demographic crisis even before that.
If they manage to win in Ukraine they will still emerge as a vassal of China.
Well yes, you dramatically reduced the male working population. So there’s a labor shortage which boosts wages.
However the inflation here lags, especially given the trade restrictions. Also they’re embracing knock off pirate versions of many of the banned things. Which offsets inflation near term, but the quality should be a lot lower. Who knows any more with the corporate total lack of giving a f about consumers.
In short either inflation is going to spike or they’re already lying about it (which given they are claiming it will fall next year seems likely)
People forget that Russia has domestic production. People in Russia buy products made in Russia MASSIVELY more often than Americans or Europeans do. While this shows up as lower GDP given currency conversion, when considered through Purchasing Power Parity, Russia’s economy is quite strong. Getting paid a dollar an hour and buying a 1 dollar chair is the same as being paid 30 an hour and buying an identical chair from the point of view of a consumer or producer: at the end of the day, economics is a local topic of how the actual participants are affected. Russia’s economy is not well viewed through a lense of GDP – they do not see GDP as a variable to maximize, unlike the G7.
I’m not surprised. They are experiencing a high amount of inflation. Spending money sooner rather than later makes sense, because later the money will have less value.