MADDOG'S LAIR
  • Blog
  • About
  • Contact

confirming the reason Russia is pulling out of Syria . . . 

3/22/2016

Comments

 
Millions more Russians living in poverty as economic crisis bites

. . . skyrocketing poverty, and shocking economic decline driven by the sudden decline in oil prices. 

"An average of 19.2 million Russians – or 13.4% of the population – were living last year on less than 9,452 roubles ($139) a month, the minimum subsistence level determined by the Russian government in the fourth quarter.

This figure represents a 20% increase year-on-year, with an average 16.1 million people living below the poverty threshold in 2014."

Ouch, this is terrible. Millions of people slowly falling into desperate poverty.

"Russia’s energy-reliant economy shrank by 3.7% in 2015 and is set to continue suffering this year.

In September, the World Bank warned against a “troubling” increase in poverty in Russia resulting from a sharp drop in the income of the most vulnerable social groups including pensioners.

Prime Minister Dmitry Medvedev conceded in January that increasing poverty was “one of the most painful” consequences of the economic crisis.

Real wages in the country shrank 6.9% last month in comparison to the same period last year.

Retail sales were down 5.9% last month year-on-year.

Russia’s newly-founded rating agency said Monday it did not expect economic growth until 2018."

The only reason it expects economic growth in 2018 is because that date is so far off there will be plenty of time to down grade later. Russia has a commodity economy. What we forget is that at the end of the Soviet period, the reason for the collapse was that the people in power in the USSR realized that the nation was taking valuable resources, and commodities, adding labor, and creating something with less value than the resource, and commodity inputs. Let that sink in. They were taking valuable things and making them less valuable through manufacturing. 

This was a shocking conclusion, but undeniable. That left two courses of action, one was to improve manufacturing, which would have taken decades, and billions in hard currency, which Russia did not have, or stop manufacturing, and switch the economy to a resource, and commodity economy. They chose the latter. Many Russians were impoverished, but the economy turned, and the poverty rate slowly fell, and Putin emerged, and became essentially a dictator, running a Mafia like state. 

Now faced with the existential threat of low oil prices, Russia is without recourse. It cannot cut out manufacturing. It does not have manufacturing to build upon, and the economy is tanking. This is the outcome of failing to embrace the free market economy, with republican governance, and reformed religions. Here at the End of History, we know what works, and we know what does not. 

Good luck Russia, you will need it.
Comments
comments powered by Disqus

    Author

    Maddog

      Blog Subscription

    Subscribe to Blog

    Categories

    All
    1000-ways-to-die
    Abortion
    Amazon
    America
    Antisemitism
    Anti-semitism
    Bible
    Blogging
    Blue-model
    Book-links
    Booze
    Bus
    Cancer
    Children
    China
    China-ccp
    China-gdp
    China-ghost-cities
    China-ponzi
    Climate-change
    Coast-guardrescue-swimmer
    Cold-war
    Concealed-carry
    Constitution
    Cool-stuff
    Corruption
    Creative-destruction
    Crime
    Crisis-change
    Dead-guy-vote
    Dead-pool
    Death-of-the-pc
    Declaration-of-independence
    Deflation
    Democrat
    Demographic-decline
    Diet
    Earth-hour
    Ecommerce
    E-commerce
    Economic-change
    Economy
    Education
    End-of-history
    Energy
    Environmentalism
    Epa
    Eric-barker
    Europe
    Executive-outcomes
    F35
    Faith
    Family
    Fascists
    Financial-irresponsibility
    Financial-times
    Firearms
    First-world-problems
    Fitness
    Flight-to-security
    Food
    Fourth-turning
    Free-eye-exam
    French
    Funny
    Gdp
    Gdp-usa-vs-britain
    Gdp-usa-vs-germany
    Gdp-usa-vs-sweden
    Generational-theft
    Global-warming
    Government-incompetence
    Government-we-deserve
    Happiness
    Health
    Helicopter-parent
    Hell
    Holocene
    Honor
    Housing-affordability
    I-love-beaver
    Imf
    Immigration
    Independence-day
    Inefficiency
    Inflation
    Innovation
    Intelligence
    Intergenerational-conflict
    International-relations
    Investing
    Iran
    Iraq-war
    Islamic-reformation
    Italian-travel
    Japan
    Jodie-foster-effect
    Kayaking
    Keynesian-economist
    Kurdistan
    Law
    Leave-nato
    Leave-the-un
    Light-rail
    Maddog-story
    Marine
    Marriage
    Media
    Medical-insurance
    Medicine
    Middle-east
    Military
    Military-waste
    Money
    Monopoly
    Nanny-college
    News
    New-seasons
    Nirvana-is-another-name-for-hell
    North-korea
    Nukes
    Obama-doctrine
    Oil
    Oregon
    Organic
    Parenting
    Partition
    Pearl
    Pensions
    Peter-principle
    Police
    Politicians
    Portland
    Portlandia
    Portland-transit
    Predictions
    President-bush
    President-feckless-odither
    President-obama
    Psychology
    Race-huckster
    Rape
    Recession
    Recipe
    Replace-the-un
    Republican
    Research-studies-are-always-wrong
    Reviews
    Russia
    Salafism
    Sanctions
    Science
    Science-versus-faith
    Self-defense
    Self-drive-vehicle
    Sex
    Shale-oil
    Shia
    Sjw
    Sleeper
    Smart-growth
    Socialism
    Sovereignty
    Sport
    Sunni
    Supreme-court
    Syria
    Tax
    Technology
    Terrorism
    The-fed
    The-house-of-saud
    The-last-economic-superpower
    Therapy
    Trade
    Transit
    True-believer
    Tvfilm-review
    Un
    Union
    Urban-planning
    Urinals-of-note
    Venezuela
    Voter-fraud
    Wages
    Wahhabism
    War
    War-crimes
    Weird
    Weird-science
    Welfare
    Whole-foods
    Work



    RSS Feed

​Maddog's Lair is copyright 2016-2018 by Mark Sherman. Please feel free to quote from this site provided you link back to the original article.
Proudly powered by Weebly
  • Blog
  • About
  • Contact