The Rather Pathetic Economy of Russia | Economics Explained
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I thought the video would be about can they economically afford to carry on this war, Instead we got a history lesson on how their economy got to this point. I’ve been bamboozled
i was thinking same
i thought it was just me
There is a part 2 planned.
Well he said at the end there's another video about Russia next week. Fingers crossed. 🤞
@@romazone101 Would have been nice to know that if you weren't looking for a primer on the rise of the Russian Federation's economy...
"Most consequential conflict of this century."
Your optimism is mind-blowing. We got another 78 years left....
He is forgetting Iraq, Lybia, Syria. It isn't clear to me that Ukrainian war will come anywhere close to the level of destruction or human life loss as the those wars. Author is click baiting
@@nickross4059 This war is a game changer for many countries. Just take a look at what is going on with Germany. They are going to weaponized once again, just like in the 30's.
And just as Dritteweg is rising. Really worries me to see us replay the previous century.
We 'may' have another 78 years left
Convenient to cut off the "may prove to be..." bit. No one knows exactly how things will play out.
especially considering that Oil is gonna dry somewhere in the next 50 years and other resources like drinkable water is also become much harder to come by.
we are going to see a lot more conflicts in the future.
This video is aging like milk.
"According to the International Monetary Fund (IMF), Russia's GDP growth is projected to be 2.6% in 2024"
"According to the European Union, the EU's GDP growth is expected to increase to 1.3% in 2024."
"the most consequential conflict of this century" oh boy, just you wait and see
For this to be the most consequential conflict of this century I think we'd either have to be very lucky or very unlucky.
well said.
To anyone not getting it, I believe he means that we'd have to get very lucky and have no other conflicts of mention for the rest of the century, or get very unlucky and for it to end in nuclear armageddon. Unfortunately I don't think that will require us to get "very" unlucky, as I put the odds of that outcome at 30%.
Good one mate
Not America's fight but all of our tax dollars are going to courpt Ukraine
Yemen is the most consequential in terms of the erasure of what little remained of our moral imperative. Millions killed so far and our media blackout is still nearly unanimous.
In a similar fashion to the 1 Ruble being the same size as a 5 Swiss franc coin, the British 2p coin was the same size as the Belgium 20 Franc coin (maybe 40, it was a long time ago), which made arcade games very cheap for me whilst I was on Holiday there as a kid in the early 90s :)
The 5 pence piece was the same as 25c piece in Canada, and I played arcade games cheaply for a while too.
Lucky man. Gaming for me was expensive in Australia. It use to cost like Au 60 cents or 1 dollar a credit.
2 2p's stuck together made for a nice £2 coin which was fun in the vending machines
@@WherEmEweeD wow, I didn't know you could do that. One time there was a machine in the arcade which would change your £1 coins, notes into 10p coins (which was the cost of pretty much everything there) and one time I put in a £1 coin to get 10 10p coins, but it gave me 10 £1 coins instead, I managed to repeat this many times and got £187 before the machine finally broke or ran out of coins. Was probably the most amazing moment of my childhood
@@louiserocks1 wow nice
It's funny how in the mix of other abandoned and damaged building, the one at 3:50 (where you say "complete failure") is atually a "museum artifact" - a house left intact after WW2 battles.
Though that is true from what I have seen a lot of the new construction isn't much better.
@@Mrdark7199 well, it’s in fact much better. But the modern buildings are… kind of, faceless? Generic structures, built to serve a certain function, be that housing, business or production.
Hopefully, in another year or two there'll be a lot more "museum artifacts" in Russia.
@@Lamprey1234no)
The video that age just as well as british women 😂
How?
The shock therapy in Russia was very brutal. China didn't follow this path, opened up gradually, with many trials and errors, and succeeded. The 90s was a decade in which life spans in Russia decreased dramatically, the highest decline of any peacetime region. If you want to understand current revanchist politics in Russia today, look to this tragedy.
... and even more to it - try and take away 14 territories in US with half of its population even without changing all of the system in one day, and lets see what will happen to the biggest economy in the world we have today.
@@jb3960 Who said so? There was a referendum to keep USSR intact - over 70% voted "yes". Try and have it in Texas now.
Add Nulan and co, neoliberal/neocon expansionists justified everything Putin would eventually do, they took advantage when Russia was weak, their "reform" was little more than exploitation. The Duran covers it better, lolbert channel just has to be ever surprised at everything like the msm, "how could this have happened" with no answers.
Its not even clear that this move on Ukrain is a revanchist move. A question of survival rather.
czcams.com/video/w5qSO1BbXsU/video.html
@wespozo also succeeded at making the components for the device you're using to access youtube
Some countries rushed to privatize faster than others. In east Germany the Treuhand quickly became the most hated institution. In Czechia the Budvar brewery is still state-owned to this day, even though Anheuser-Busch would love to buy it and secure worldwide rights to the Budweiser trademarks, but they're not selling because it's consistently run at a profit to taxpayers.
Budweiser is dreadful
@@richardfinlayson1524Czech beer is the best.
@@lamichka I'm sure you are correct, not a big beer drinker anymore, take it easy mate.
@@lamichka I guess central and eastern Europe has a long tradition of making great beer, I bet it's a lot different than what we are used to here in Australia, although there is a massive craft beer and microbrewery scene here in Melbourne I grew up with the Carlton and United beers:Foster's lager, Victoria Bitter,Melbourne Bitter,Carlton Draught although Cooper's was a pretty good drop,that's from South Australia,, more naturally brewed,at least it used to be. Take it easy mate, I shouldn't really say negative things about Budweiser I haven't drunk it for years and barely remember.
@@richardfinlayson1524 Budweiser and all its competitors in the USA are extremely bland in flavor. I actually like bland beer but there's no sense avoiding the truth of it - they are bland.
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Hugh man, reporting for duty among this army of bots
The thumbnail reads : Can Russia still afford to fight. One year later, this didn't age well 😀
Did you watch the video?
Many people understand that governments are really bad at running businesses, but few appreciate that they are equally bad at selling them.
Another thing Russia does have going for it despite having a low GDP per capita and high inequality is the high home ownership rate. Like All former Communist nations, well over 85 percent of Russians own their home(Most of the 15 percent are temporary migrants from Central Asia who btw are also home owners in their home countries too).While property taxes exist, they are very low given how low the value of Russian apartments especially, is. As such, even with low wages, Russians generally do not have to worry about rent or rising property prices the way Americans and Canadians especially have to.
I did not know that great post !
My taxes are 47 dollars a month.
@@netyimeni169 as an American I will have to move mountains to afford a home. Good luck to you !
Whenever I see pictures of Russia they often show a lot of apartment blocks, are there a lot of single family homes in Russian cities? Or are those apartment blocks mostly turned into condo-flats?
@@matrix9452 high demand or lack of supply it still sucks if you want to own your own place in the US or Canada vs Russia. This is an area where it is advantage to live over there. No perfect place to live but having your own home is a huge plus.
8:25 - little to no time spent to note the other side of Russian oligarchs wiring the money out - the british and european banks, that actually were pretty fine with putting such amounts of capital under them (un)intentionally closing the eyes on that money origins
A Russian friend said this to me once: "Our currency is no longer ruble, rather rubble"
they got snowballs for days
Workers said, "we pretend to work, they pretend to pay us."
check update
@@iflax7460 Officially, yes. On the black market, not so much. It's artificially propped up, and that can't be done forever.
Your Russian friend is bad with money then hahah
15:00 "Russia has a wealth Gini of 37.5 which is not great, not terrible". Loved that reference 😂
thank you for pointing it out. I missed it listening through
can someone help me interpret the Gini Coefficient's numbers (to the real world situation... if i can put it that way).
1) if 100 means that all the wealth is with one person, does it then mean that 37% of the Russian wealth is with one person?
or 2) the 37% means that there is a 37% income gap; if so, who are those people that have the wealth gap of 37%
basically, what i am trying to ask is: how do these numbers apply/work in the real world
@@stormchaser0898 Wikipedia is your friend, but basically: it means that if you make a graph of the poorest x% of the population their y% of the wealth/income, what's the difference between that and a straight line. In a perfectly equal society, there is no difference; in the tyrant society, the poorest 99.9% have nothing and there's a 100% difference. For G=37%, I can't give such exact numbers, but it'll be something like the richest 10% own 90% of the wealth, whereas if G=25%, it'd be more like the richest 20% own 80% of the wealth, or if G=50%, it'd be something like the richest 5% own 95%.
I was looking for this comment, Thank you!
what is the reference he is talking about?
The Washington consensus is hardly a gold standard and is viewed as quiet problematic by a lot of scholars, Its essentially a way of promoting US economic ideology and interests, there's European and Asian economic models that would of suited Russia better during the 1990's.
I would argue that the oligarchs in charge of Russia at the time weren't trying to help, it was more like organized looting.
Yeah it only created the largest economy in the world and the most free population in the world. Hoe awful huh
@@zozzledwolf4653 China has the largest economy in the world and there's no precise, scientific way to measure "freedom". Lots of debate as to what it even means.
Tyler Cowen > your CZcams opinions.
@@zozzledwolf4653 so uhh, what ranking are you using then?
How can Russia afford nuclear weapons when it's economy is so weak? You could ask the same question about North Korea.
Because both of these country’s put military spending first while Civilian economy goes 2nd,
@@Soyjakgamingbutawesome Indeed. thats why sanctions don't work against tyrants, they're tyrants.
@@tetraxis3011 deep brained
Russia really can’t afford them, they have thousands of Soviet legacy weapons, and they are a huge drain on their budget. As for North Korea, it’s just their number one priority because it’s the only thing that keeps them relevant.
When you're willing to stomp on your own citizens rights to accomplish your evil objectives, it's amazing what you can do.
Oh yes! Fine milk.
How so ?
Can’t wait for the “Sovereign wealth fund and how their more powerful than banks” ep ,a nice discussion to distract from the perils of the world.
That was a nice way of saying countries that don't run on world bank debt work different.
@@jacksonteller1337 oh are they? Because this entire Ukraine conflict is over Russia owning the European fuel market and America imposing itself to close off the nord stream pipeline. Forcing Germany to buy its natural gas through us…
@@joshuayow4653 If a country produces something, like the US produces massive amounts of food, they get to be wealthy.
they're
@@riparianlife97701 80% of the nickel on the planet comes from Russia, 80%+ of the emeralds used in electronics, A third of the worlds fertilizer, 15%-20% of the worlds grains, 10% of the worlds oil, ECT. Virtually all iron Europe uses comes from Russia, virtually all the natural Gass for synthetic fertilizer In Europe that feeds half the world.
Russia is seen as "poor" because it refuses to become indebted to the world bank and has backed it's currency with gold.
The U.S. is a hundred quadrillion dollar Fiat ponzi scheme teetering on the brink of collapse.
Russia, China, India, Brazil, venezuela and Saudi Arabia are forming a coalition to replace the petrol dollar. When this happens I hope you have the bulk of your savings in gold, silver, guns and food because the facade of America will be over.
Meanwhile
China removed their restriction on wheat from Russia and now buying wheat from them
India also went ahead and signed an agreement to buy more Russian oil
Oh and China signed the oil deal until I think it was 2026
China said they are buying more from Russia to offset the sanctions from the west
So 1 year in a review is needed: 8th largest economy as of 2022, projected gdp growth a bit shy of 2%
what are u smoking fool?
@@vaidasspu not what you are
@@vaidasspuis this your way to disagree with people?
GDP usually grows in war times because the country is indeed producing more. The backlash is felt when the production of war machines and supplies needs to be shifted back into normal industry.
Also compared to like an house, a car or a computer that will last for years, all a rocket or a bullet can do is be used and therefore disappear from the economy.
Producing weapons inflates the GDP but doesn't produce wealth
@@leonardocontin937that's fine but the predictions on Russians economy during the conflict have been false and quite unsurprisingly are tantamount to propaganda and nothing more.
They are still fighting 8 months after this video
And on the offensive again
And their economy is doing great
So, the original sin for Russia was botched privatization. Thanks for an informative video.
Hahaha, don't mind the structural problems when you can blame the oligarchy.
@@lokalkakan it would be better if the soviet union didn't collapsed
@@guydreamr The original sin is the lack of law and order. The destruction of the Soviet control system caused complete anarchy. In this vacuum of central power, people who held formal or criminal power stole everything that was worth anything and were fighting among themselves. The biggest "achievement" of Putin is that he stopped the anarchy put some rules on how the people who have the power should behave.
Nah, the botched privatization is just a symptom of something deeper - a cynicism that comes from a generations-long traumatic memory of being punished whenever you tried to deal in good faith with your public institutions.
A thing I remember from early U.S. history was how the fledgling government (a much more primitive, low-revenue state than today's) did pretty well in its core tax collection (of tariffs). There were such scant enforcement mechanisms that the tariffs could have rampantly been evaded if people chose to do so. Yet people overwhelmingly remitted the tariffs. That comes from a sort of idealism (goodwill toward institutions, personal honor, national pride) that, it appears, is quite rare and delicate.
I have some close friends from the former USSR (including one, harrowingly, with folks still in Ukraine) and we will still occasionally start to talk past each other and then chuckle about it. The cynical vs idealistic mindsets we grew up with are diametric opposites.
LOL I guess you never heard about Shays rebellion and the Whiskey rebellion. The US even in its early days violently supressed anyone who objected to overburdening federal taxation, typical American thinking your institutions are somehow purer or well-meaning than everybody elses
You did a good job summing up the looting of Russia in the 90s
He skipped over the part where foreign oligarchs ended up with the majority of Russia's industries and corporations. Russian oligarchs weren't dominant. That's why Putin exiled many of them (they were our plants). The oligarchs that remained after Putin's purge were all Russian.
He also skipped the part where these foreign oligarchs (primarily American, British, and Israeli) purposely pillaged the country.
@@stateofopportunity1286 Exactly. No surprise it ended up like this and why Putin is so popular.
@@dasbubba841 100%. And the ones who eventually kissed the ring got to stay.
@@stateofopportunity1286 This is so true man. I hope Russia grows closer to India and Iran, we have things in common.
I mean, it's pretty much "Yes sure, they steal, but at least they still for themselves and not the west".
This aged like milk
Seven months lather they are still at war🤷♀️
Don't worry, the war will end within two to three weeks after the West runs out of military vehicles that they are ready to throw under Russian missiles in Ukraine, lol.
Russian citizens seem quite proud of their ability to weather suffering so the sanctions will just fuel their prideful sense of endurance.
so true
Russian citizens have always looked to me (at least the older generation) as people who have grown up without corporations telling them they need this and that, and their old thing is out of date so you need to get this one, etc.... They live in basic homes, provide as much as they can themselves, and keep what they have functioning.
Visiting a scrapyard in Russia you find a literal scrapyard, everything is picked bare of all useful parts. Whereas in the US most of the stuff is actually working and simply "old" or slightly damaged.
As long as they have food the Russian citizens will be fine.
If the US was placed into a similar situation I don't think many people would fare too well.
That thought actually got me to move to a more rural area last year. I didn't want to be right outside a big city if anything bad happened, no one is prepared or educated to do things for themselves.
@@volvo09 basic Russian home has decent insulation and centralised heating, keeping it warm in winter at minimum expense - something many first world areas cant boast. Scrapyards and landfills are the working area for organised homeless people and sometimes gypsies, going for parts, recyclables and occasional random finds - there's some real money made there. On top of that, any Russian above 30 remembers 90's, which were rather "fun" - to the point where people had to rely on growing whatever they could around their country houses to get by since things were messy.
So yeah, life will go on.
@Jim Harrington look at what China has achieved. Russia could have been in China's position if it was better lead.
mcBrain was proud visiting azov battalion in 2014 i wonder why
If you leave the big cities like Moscow and St Petersburg its like going to a third world country where nothing has been upgraded since the 50-60s and left to rott. What money has not been stolen has been invested the military and grandios projects that did little to uplift the general population. The living standard are bad (and have been going down) and there has really not been any effort made to develop new industry and services.
Indeed Usa has big empty buildings but majority of people resided on footpath.
Same as US, nearly half of people outside big cities live under the bridge
like America then. Filled with ugl y ghettos 🤣🤣.
New york was such an utter disappointment that it's hard to get over it. "first world" America 🤣
If you go to big cities in the West like the one I live in you literally feel like you're in a third world country.
@@Metoo3232-pu2wc I live in a Canadian city and you are wrong. Most Canadian cities are full of drug addicts, homeless people, and third worlders who barely speak English. The average house in Toronto is over $1 million.
I am a swiss and non communist, however, I think the primary sector of ressource production, mainly mining, gas, oil, as well as infrastructure like road networks, busses and trains and electricity as well as telecom should be state owned and operating under the motto of breaking even, not gain maximising orientated.
Why?
Because if well organised and maintained, it could lead to a more efficient distribution of ressources and the local 2. row of production could be supplied for cheaper, whilst surplus may still be given to the market...
Especially transportation and energy should not be privatisized, the result of it is currently visible in europe. Lobbying and the fact that the price is the driving factor as well as at least partial privatisation => no one has a real interest in solving the energy crisis => the economy as a whole suffers.
And one thing that should NEVER be privatised is drinking WATER.
Anything that is relevant for life and relevant for keeping an economy afloat, primarely infrastructure should be state owned and operated with the mindset of breaking even instead of gain maximisation, as the access to energy, transportation and basic needs will benefit the overall economy more than a privatised, gain maximising sector in that area.
Switzerland used to have a state owned communication, transportation and energy sector... at least the transportation quality is falling and regarding the postal coverage it is to be argued over...
If not fully state owned, there should be regulations on a baseline, what is necessarely the standard to be met by any competitor which they have to fulfill...
So the clip asks the question whether Russia can still afford to fight - given the war is still going on more than a year later and shows no sign of abating, it seems the answer was “yes”.
Love your "Countries to avoid map" very nice safe space
Just a side note. I like how "The Washington Consensus" is almost exactly the opposite of what's currently going on in EU and in fact most of the world XD.
It's what we do in the US though... and it causes a _lot_ of problems, lol.
@@KingBobXVI we need to return to the Keyesian model for follow the Japanese or German models of economic development
@@frankieseward8667 i was german working not able to take shower or have heat, i prefer norwegian or swiss
Yeah and EU is stagnating. Not that I'm supporting The Washington consensus
I kept saying, wait until you pass judgement about this war but no one listened
Pretty much, so many people fell for propaganda, it’s like suddenly everything they’ve been taught about not trusting everything on the internet was thrown out the window.
They actually can afford to continue. The Russian GDPZ is expected to grow at 1.9% next year or something like that. For a country that is sanctioned and at war, any growth is spectacular enough
Outside of the touristy areas. There are many parts of Russia, that resemble some kind of post apocalyptic wasteland, like what you see in the fallout video games. The people i met, seemed much poorer, than their counterparts in Western Europe.
yeah just watch bald & bankrupt and u see lots of that
Wait -- are you telling me that people in most of the world are poorer than in the richest part of the world?!?!?!?!? NO WAY
@@user-ub4ud9gy4d no he didnt say that. he said that russia has money but also has extreme wealth inequality so many people are poor and some few hoard all the money.
In short, the narrative in this video is nonsense, plucked from popular media stories, which are modern versions of Gulliver's Travels, and not from actual economic data.
i`ve seen the same in USA, see San Francisco, one example
Just so you know, ALL modern wars are fought economically as well as militarily. Japan’s war was largely driven by economics, and its defeat involved cutting off its economy. Same with Germany - hitlers drive in Egypt and in the Soviet Union Caucasus was completely driven by the economic imperatives of oil (and taking Ukraine was intended to boost German food supplies - blockaded by Britain, as in ww1). Stalingrad, as the northern ‘elbow’ in the axis line to oil in the caucusus, become solely a strategic imperative for economic reasons. It’s loss by Germany meant the certain defeat of Hitler, as did the defeat of the Afrika Korps at El Alamein. Economics IS war. And it often drives wars.
@@mylifeisajoke1 if you're on the ground, you're cannon fodder. America has deliberately pushed at Russia with Ukraine & threat of other NATO installations too close for comfort. Russia went mental & is now wasting Ukraine. This gives the west the green light to take them down economically. They've wanted to take Russia down economically for decades. They don't like the idea of BRICS or any country joining it. Behind any military is just a bunch of greedy spoilt brat children (politicians) fulfilling their personal greed. America wants it to be like the 1950s forevermore. But do remember they only got into WW2 when they realized they could profit from it & make themselves out to be saviors of the human race.
@@mylifeisajoke1 "An Army marches on its stomach" Napoleon and/or Frederick the Great, or neither ;)
Economics IS politics… it’s economics all the way down. Real and monetary.
For example, rommel asked for reinforcments and supplies after taking tobruk. This was denied because it would compromise the invasion of the soviet union
@Jim Harrington Japan is a small island nation with not much in the way of resources. Japan having recently modernized and centralized saw China being embroiled in Civil War at the time as a 1 in 1000 year opportunity to invade so they did with imported US oil. Of course, the US cut the oil supply and doomed the Japanese invasion unless they secured new oil so they took Siberia or the Philippines into their sights. US would obviously respond to an attack on the Philippines, so Japan decided to strike first, cripple US presence in the Pacific to buy themselves time in consolidating their gains.
I find it comical how much we talk about all these economics and minimize the "spicy fireworks" but yet these fireworks contain MASSIVE leverage.
To answer your question from 11 months ago yes.
"Not great, not terrible" Hahaha, golden reference!! 👌🏼
"What May be the most significant conflict of the century"....
Awww you are so cute. I bet someone said that in 1905 during the russo-japanese war...
Exactly were only 22 years in. We still have 78 years to go.
8 months on. War still ongoing 🤷♂️
This video aged well
Really ? Rubel is stronger than ever
@@umersalahuddin3892yeah, after having defaulted on its debts and driving gas prices through the roof. Such strong.
@@jordinagel1184 Yep. Only recently have we seen gas prices coming back down 'round here. It's good to see gas at around $3.50/gallon again.
@@jordinagel1184 when did a default happen are you high?
@@danieltchaikovski7212 google is your friend
I love how he talks about being resource-rich as if resource exportation doesn't have the lowest return in terms of economics and it isn't the major form of wealth in developing nations.
Having lots of resources is a very welcome bless, but countries fail when they don't add value to it. Being dependent of comodities is a recipie to disaster.
Yeah, it is a rather dated economic concept. There used to be this idea that resource wealth -> general wealth -> service economy. It was very popular with american economists since it seemed to explain the US's rise to power while downplaying the importance of imperialism. It was a very 'feel good' theory that is still VERY popular, esp in the western US, and shows up in a lot of 'critical rural vs useless urban populations' political and cultural rhetoric.
In more modern frameworks, resource economies are more of a 'soft imperialism' trap, very difficult and painful to get out of.
Natural resources don't have to be bad for economic development though. Australia, Canada, and especially the channel favourite - Norway - are examples of how resource extraction can help grow an economy rather than hinder it. Even the US has had great help from natural resources.
@@neeneko cool let's all stop sowing crops so if critical rural economy is just rhetoric
It's called resource curse. It makes your currency valuable therefor not competitive in the global market.
Question: What would have been the best way for Russia to privatize State owned businesses without having to sell them all off to foreigners?
Don't be in a hurry to sell them off. Let people start their own businesses and build wealth first. Then sell state businesses to those wealthy people through auctions and the stock market
A corrupt political system probably
@@christopherbelanger6612 lol that's how avoid depending of foreigners or companies like United States does, now they cry because Biden is useless to keep down gas prices
Workers collectives. Its really not hard. If the workers' livelihoods all depend on the business succeeding, they are going to try to manage it well.
do not privatize right away, keeps much of shares state owned
Russian GDP should be measured in PPP as well as other figures or at least taken into attention
PPP makes sense only per capita
@@mateuszkardas8125 Sure. According to your logic, GDP also doesn't make any sense, only GDP per capita. What a wrong idea. GDP pee capita = GDP / number of population. It is an obvious formula where both figures are interdependent and equally important.
This aged well.....
I was here to just write this.. lol
Over a year now and back to laugh at this video again as well
The Washington Consensus is an absolutely terrible set of recommendations that doesn't help a country grow its economy. It was forced onto developing nations through conditional loans and allows for the west to turn any developing country who follows it into a bottomless money well that will never be able to support itself. I strongly encourage anyone actually interested in development to look more into this as literally not one country on this entire planet has ever achieved economic success by following the Washington Consensus despite many trying. The only regions to fully become "developed nations" in modern times are South Korea, Taiwan, Singapore, Japan ( Japan's a complicated example) and arguably China. These nations achieved this growth by following what's now known as the Developmental State model, whose principles are almost the polar opposite of the Washington Consensus.
What countries have used the Washington Consensus and not worked?
Yes Totally…the US should just give other countries free money and economic aid without any conditions attached because F*ck the American taxpayers, they should be happy giving Billions if not Trillions of their dollars to poor third world countries
@@tylerclayton6081 Ofcourse it shouldn't. And it doesn't. It does so with preconditions that benefit it's own economic interests.
@@tylerclayton6081 You have no idea what you're talking about do you?
Yep,
IMF is also full of Bad policies that let every country who receive IMF funds in despair making the profits go private (often to american companies... What a shock!) And debts being paid by the nation.
All countries that succeded in being independant are now in a better state than IMF countries.
Protectionnisme did good to China, south Korean, Japan and helped russian industry develop itself
It really is a tragedy that the chance for arguably the biggest societal redemption story in human history was squandered by one lunatic and his rich friends who couldn't let go of a failed empire.
You'd be surprised how many Russians actively support Putin....and how many compliantly follow.
@Jeff Johnson probably both respectively
Or maybe Putin was just sick of American expansionism around its border via Nato and the EU and thought... Oh well, lets invade Ukraine and take the east to make the US think twice before making any moves to install a puppet in Moscow
Putin needs something to justify his more than mediocre leadership, old empire "dreams" that never profited to anyone but a small elite are vague enough to enroll every nostalgic/nationalistic idiot out there and we know they are the majority in Russia.
Lol this video is "western" propaganda right from the title.
I would like to see your assessment of the government of New South Wales and specifically the privatisation of energy / electricity production and distribution BEFORE privatisation of water is considered publically. I love your stuff, great team, thank you all.
Any fair comparison of GDP has to be done with PPP.
I remember my second trip to the USA from New Zealand when I was a kid. I say the second trip because on the first trip I discovered the NZ 10c coin was exactly the same as the US Quarter. And an exchange rate that made that 10c coin worth about US 5cents. Hellllooo vending machines!
Couldn't more be said about "shock therapy" and the Washington Consensus's ill effects on Russia in the 90s? It seems like a lot of those recommendations were just wrong for Russia when you compare, say South Korea or Japan's economic miracles. Russia was given almost no post collapse support.
I’ve always wondered about that. This was the collapse of THE communist super power. It’s weird the West didn’t do more to support and advise the new government.
In the 90s Russia also tried approaching the West for either potentially joining NATO or forming a European continental security alliance, and in both cases she was given the middle finger. So how do you expect them to be more western when each time when they tried the west just spat in their faces?
Why would a nation the size of Russia, with lands holding the resources of Russia, need the sort of support South Korea and Japan needed?
South Kore and Japan have no oil, no iron, no minerals to dig out. South Korea and Japan had some land to grow food to feed itself and human beings.
The governments there developed its Human Resources. Education if their people is the key to their success together with the discipline of its people.
@@ARN012 Exactly, Russia is just one of those places that the west has taken to trying to destroy. It is a Superpower and Americans don't like competition. I am just thankful that it hasn't collapsed yet as once that happens America will invade just like any of the rest would if they got the chance. The only thing that keeps the world at the relative peace we have is the fear of Nukes.
@@FakeAssHandsomeMcGee_ what if thats what america wanted when proposing to ukraine to join the west
It is now a year later - care to update this?
Lol, this hasn’t and will not hold well!
Suggestion for a new video : you should make a video about the algerian economy which is in an interesting situation , it will most likely end up like Venezuela while still having the potential of norway , but have specific problems related to its culture and gouvernement... and history , love your content by the wat
I do have a question regarding privatization. Would it be possible to lease the industries rather than straight up sell them off? I mean while it feels bad to sell off vital resources of the country to foreign powers, having a potential legal way of taking it back over would largely assuage the downsides. Personally I find a regular and renegotiable payment scheme a much better option, for the government, to a one off fire-sale of everything money-making.
The issue is that it takes capital to buy and make mining equipment. Having limits on the contract make it significantly less advantageous for the buyer.
I have to agree. Selling off Russia's mineral wealth to foreign companies would have turned the country into a virtual colony of the West. Russia's kleptocracy might just have been the only thing keeping the country somewhat independent.
If only the government was constrained by legal and democratic means
Or how about not selling everything to the same foreigners?
Like 20% max to US citizens, 20% to Arabs, 30% to various Europeans etc.
@Jim Harrington ayo is that sarcasm ?
All the experts here,,,, if I asked you about Russia in 1991 then you would not even guess their current progress..... you're all clueless... -someone watching from distance and seeing you getting all the titles and stats wrong.
Really well done video, thanks for the info
Coup in USSR was in 1991, NOT in 1989.
"Maybe the most consequential war of the century" we have 78 years to go. A lot can happen in 78 years.
Russia still strong 7 months after this pathetic video....
I guess to Vatniks being "strong" means losing control of Kherson.
@@joplin8433 I guess retreat from Kherson much worse than losing all that fancy western weapons and vehicles(USA alone in 2022 dumped in Ukraine amount of money equal to Russia military budget) in battle for Bahmut and still lose positions, yea
@@AtticusKarpenter
Citation needed.
12:57 that soldier falls off, when he is trying to get in to the helicopter 😂😂
Looking fwd to see how this analysis goes.
It really needs to consider if is it true that the country has the ability to be 'apparently' self sufficient on goods and food for its population. (A big parameter to analyze the impact of the sanctions imposed).
It definitely can self sufficient the same way Soviet self sufficient. However, it won't do any good for the economy the same exact way it destroy Soviet's economy
@@dieptrieu6564 That's how I see it as well. They should be able to feed themselves, supply fuel and other basic necessities. But their GDP/capita is going to tank. So there probably won't be mass starvation but living standards will fall sharply. They should do at least a bit better than Iran.
@@zjetman Dude, russia produces/produces like 20% of world grain if not war, with ukrain being the next one with around 14%. They are fine food and resource wise by a mile.
@Marko Bucevic but they depend for a significant part on foreign seeds and technology to do so. Bayer, one off the largest seed suppliers to Russia stated that delivery of seeds for next year crops will depend on peace in Ukraine a few days ago.
@@rj7855 yes, but in capitalism, if one corporation decides not to do something profitable, another scummier corporation will just do it instead. Also, worse comes to worse, they can just pay the corporation in disarmed military weapons and missiles (which the corporation can sell or auction somewhere else), the Soviet Union did it with Pepsi, and Russia certainly has no shortage of them
That one dude has a yacht worth $1 billion. That's all you need to know about Russian "economy".
Forbes estimates Putin's wealth is about $300B to $500b from an article a few days ago.
@@raylopez99 I'm sure it's possible to acquire that much honestly through hard work, long hours, & savvy investment. The implication that he stole from his country is purely speculative.
(Edit: folks aren't getting the irony so we'll do the numbers. He's on about $140kpa, so we'll assume that figure since he started from zero driving a cab 20 years ago. -13% tax, assume he saved 25% (tough but doable), & invested high return of 30% interest (that's high return because it's high risk but assume his luck held every year). He'd now have $19 million, impressive but impossibly far from even $1b. I.e. he couldn't get several billion through honest means)
almost all countries protecting the big companies. it’s just that certain individuals are companies in Russia
"westoid economy" 🤣
@@ShimmeringSword Congratulations, boot licker!
the phenomenon to describe such videos is called "rusophobia".
If your grandparents hated nazi germany they were germanphobic 😡
Inadequate analysis and old table of data.
There was a Czechoslovakian coin that worked in German vending machines too :) Also, after the fall of Eastern block and dissolution of Czechoslovakia, 2 SKK worked as 5 CZK (so like triple its value) in vending machines. They got much more accurate since the early 90s tho :)
Some machines in CZ accepted washers :D
In Australia the dollar coin is bigger than the 2 ,bonkers and so say n.Zealandsrs visiting
@@geraldgreenman4715 If you think the 1 dollar coin is chunky, look up the 50 cent one. It's almost twice as heavy!
Australia had the issue with 1 and 2 cent pieces, which were no longer valid in the 80s/90s. I think the 1c passed for 5 cents and the 2c passed for 10c. You couldn't give them to shop vendors because of the colour but they were the same size for vending machine
The best story about this type of old times scams is about Polish people, Polish people living in the west were making coins out of ice and then they were using them in rented homes that got vending machines for the utilities... 10 out of 10 scam rating...🙃
Should also do the Ukrainian economy - before the war. Unpopular though it may be to criticize the peaceful nation in this conflict - they also shared corruption and oligarchy
Of course. Every post Soviet state did. The SU was one of the most corrupt states on earth, of course that lasted after.
Interestingly the countries that moved to the West and Europe like the Baltics could improve themselves during the EU joining process for example. This shows that the path Ukraine is following, looking to the west and not the east can improve their state in this regard.
Oh I think Ukraine was perhaps an even worse basket case than Russia, though that was probably at least partially because if Russian bullying.
The interesting thing is that this war is likely to totally change the internal dynamics in Ukraine by creating far more trust and common spirit. The optimist in me wonders if this war might not be the best thing to happen to the Ukrainian economy even with all the infrastructure damage and potential loss of some territory.
Nothing peaceful about Ukraine in the Donbas region or threatening Russia with NATO weapons
Any article/news/comment thats in english, is what the west wan you to know
@@Delheru bullying? Russia was Ukraine's biggest investor by a long shot up until 2014, and even post-Crimea it was a big thing.
"this puts it in line with other economic success stories like Cyprus and El Salvador..." 🤣🤣🤣
Wow, this was really interesting! Thanks for explaining the economic history so thoroughly yet plainly.
Oh stupid thanks for the fake news propaganda against Russia 😵💫
"Can Russia still afford to fight" is not even been answered! Clickbait at its finest!
THE SEQUAL TO NORTH KOREA WE DID'NT KNOW WE NEEDED
AND IS MORE THEN WE DESERVE!!!!!!!!!!!
You should do a video on how badly you got this wrong. This was the video that you lost me as a subscriber last year.
Russia's economy is expected to grow ~3.5% this year and Europe's largest fund manager Amundi expects the Russian economy to grow three times faster than the euro zone's in 2024.
Except he didn't get it wrong. Economic projection isn't measured in months, it's measured in years. Doing a victory lap on this now is the equivalent to declaring your team the winner when it's only halftime.
Not only that, growth doesn't mean that an economy is doing well. Russia is still regulating the currency heavily to avoid a total runaway of its economy.
@@Horible4 lol pure cope.
@@michaelg3671 It's not cope, it's economics. More than once does he mention that the consequences of the soviet union's actions didn't fully begin to be realized until nearly a decade after it collapsed.
You just want to confirm your prior biases to this video by declaring victory as soon as possible before the full scope of consequences have even started for Russia. It is widely accepted among the majority of economists in the world that this isn't sustainable for Russia in the long-term and recession is inevitable, possibly even hyper inflation could be expected.
Sure, the economy has "grown" thanks to short term efforts by Russia to prop up its own currency but its not investing any of it into infrastructure or businesses is it? Reckless military spending was the downfall of the soviet union, what makes you think it's different this time? Moreover it is heavily relying on its energy sector to carry a lot of the economic burden which the majority of the world is now shying away from using.
How do you propose this will equate to long term economic growth? I see a lot of people (russian propagandists) wanting to oust detractors of Russia's economy saying that because Russia's economy hasn't collapsed yet it's proof that Russia's economy is actually getting better. How? How do you figure this is sustainable? Being cut off from the majority of the market, pouring a large portion of their government budget into the military, and with the added negative traits of brain drain and manpower losses in Ukraine, how do you figure this is a win for Russia in the long run?
So when you say "pure cope", it sounds like you're projecting. Because I see no future in which Russia is a thriving country in this century.
it’s two years into the war and Russia has just got stronger both militarily and economically.
@@vl7244absolutely not. They are importing weapons from north Korea. If you find that a good thing for the Russians, you are delusional
Asking if Russia can still afford to fight is kind of like asking a tweeker if they can still afford meth.
It's almost like the "Washington Consensus" is guaranteed to result in exactly this kind of disaster or something. Who would have thought that putting the entire industry of a nation into the hands of just a few people was a terrible idea?"???
06:18 did you watch the video?
@@Briggie Yes. It should be obvious to everyone who isn't a drooling moron that selling off the entire industrial base of a nation is going to result in exactly this kind of corruption every single time. They didn't create an economy from nothing. They transformed a failed state enterprise into a late-capitalist hellscape. They had to know that would happen.
@@Frommerman Then why was China successful in doing so but Russia not?
@@yuriydee China did not introduce this very fast.
@@yuriydee China never had an imposition of Washington consensus. If it did it would be a wasteland.
What is the debt of the United States?? What is the inflation rate??
I learn so much on this channel its amazing! Like I learned today that numbering things like this: "#1):" is confusing to say the least lol
On the other hand, winter is coming soon & people across Europe are complaining of their utility bills. Will Western Europe be OK?
Always a good day when the Vegemite Economist posts.
Not sure about the economist part.
@@Iain1962 me too but this one seemed correct
You missed the fact that the majority of Russia's exports is fossil fuels such as coal, oil and natural gas. Given the fact that the world is slowly transitioning towards renewable energy, the outlook of Russia's economy even if/when the sanctions are lifted is very bleak.
Yes and no.
Firstly: We will need gas and oil for at least another 20-30 years before we can get rid of them for electricity completely.
Second: Oil and gas are not only used as fuel for generators. But are also resourced at the beginning of many production chains. For example plastics, roads, etc. So they will sell oil for a long time to come. Just no longer in the quantities they did.
And russia is huge. There are also many other resources they can sell. Not at an profit as immense as fossil fuels, but still.
@@godmode8687 In the US, around 75% of the oil is used to produce gasoline and diesel. Less than 15% goes towards asphalt, plastics and lubricants. At this rate, the US could definitely rely on domestic sources of oil for all of its needs if gas and diesel demand is halved. The EU could likely do the same.
Lol. Europeans will starve and freeze before they stop needing our fossil fuels.
Sanctions will hurt Europe more than they will hurt us.
The US will be relatively fine in the short run. Essentially, you are wrecking the European Union to prop up your economy.
Russia has a lot of food, and will get more as climate change gets worse. The transition from fossil fuels and coal are at a glacial rate. We need to pick that pace up by a factor so large as to be basically impossible with the corrupt political and 'fourth estate' in the west.
Sean Place How true is that though? Most of the world is not dependent on renewable energy. It will probably be at least 50-100 years before renewables are in the majority.
the fact that you think who's in charge in america is up to the voters shows that you need to just stick to talking about economics and just avoid talking about politics, specifically and especially american politics.
Dear Sir, for a non-economics graduate I found your economic soup fascinating. Thanks for the education.
Most economies that are ranked high are based on services startups stockmarket housing prices. This metric is designed by us. I am from the Netherlands we rank high, we have no factories, most people cant afford housing and work in the gig economy and people from east Europe come here and get exploited to work 12 hours a day for an 8x minimum wage and get hurdled like cattle in small rooms where they sleep with 4-6 people like in China. Our middle class is disappearing at a rapid rate and without rich parents you cant buy a house rent houses go to expats and you will have to wait a minimum of 10 years to get an apartment in some ghetto and untill then you live with mom and dad. In addition the very rich over here can do what they want if they loose money the ECB will print fresh money and buy debts but all negative factors are not indicators of these models and thus they are always biased in our favor so we can come out good.
I think you are not being fair to The Netherlands, yes there is a housing shortage and yes inequality is real. Seems like most new housing developments are huge single family houses which is quite infuriating. But yet, this country's living standards are great, work is plenty, infrastructure is top tier and the economy is strong. I am really amazed you are saying that there is no factories when there are thousands, also a lot more jobs than just gig economy. Its very easy to be negative of your country, but as an immigrant I feel in heaven here. I feel you on the issues but you are being overly negative. Ghettos? Here? pffft please..
@@ilyagorbunov8683 I am from the Netherlands. Yes for expats it's a great opportunity to push the poor and average out. I work in IT, IT is not representative for the average Dutch since it's bachelor/ master level with 2x-4x the national average income. As an expat or university degree holder you have a near 100% job. The people who clean your companies bathroom or who work in stores live from paycheck to paycheck and can not compete with you
You compare an apple with beer. An expat is not an immigrant but a highly educated knowledge worker or manager it is not the same as being a polish slave worker that works in meat processing. Even the mailman here get payed like a gig 0.50 cent for 1 box you are completely clueless how most people here can't make ends meet and are in depts because people like you drink 5€ Starbucks coffe and are the cause for gentrification. Go too Bijlmer / Schilderswijk or some other big city and read local news, shooting stabbings everyday don't try to lecture on my own country imbecile most people here make 900-1200 euro a month we pay mandatory 100-130 health insurance and 100€ electric / has connection that leaves 700-800 for rents and food here.
Greetings from Indonesia 🤣
Yoo Bro same in Germany.. I have the feeling im getting poorer by the day and I have a good work with witch I was very happy for long time and now I almost can't make ends meet..
“A country that had made a lot of money by selling a lot of oil and gas to a lot of countries that were beholden to their natural resource wealth. A country that was run by a very small group of people for the benefit of a very small group of people and a country that saw very little in the way of consequences for it’s past acts of aggression…”
Not sure whether he’s talking about Russia or the US.
thanks, enjoyable and informative 👍🏻
Thanks for the video Economics Explained!
Most interesting thought I had about the Washington Concensus was to think about it and - where information is possible - thinking about post-apocalyptic movies/tv shows. Imagine doing a review based on the Washington Concensus on the various collectives that came about in The Walking Dead or something like that! Would be fascinating!
Definitely not russian land- and cityscapes:
3:12-3:16 - Duga radar, Chernobyl, Ukraine
3:25-3:35 - Kyiv, Ukraine
3:37-3:47 - Pripyat, Ukraine
5:08-5:13 - Kyiv, Ukraine
6:10-6:18 - Kyiv, Ukraine
9:20-9:22 - Kyiv, Ukraine
Footage from 5:25 to 5:30 is not from russia, it is actually from capital of Lithuania, Vilnius
dont worry, soon it will be
@@user-mo6xy1mi3olooool
How can a YT channel about Economics talk nothing about Economics?
11 months have passed and the answear is YES
I haven’t seen this channel in a while. What a great video to reintroduce myself to.
Singapore retains its top spot as the richest economy in the world in terms of GDP per capita by 2050, at USD 137,710 per person, the report noted, followed by Hong Kong (USD 116,639), Taiwan (USD 114,093), South Korea (USD 107,752) and the US (USD 100,802) rounding out the top five.
Source: The Economic Times
“Not great, not terrible”… I see that Chernobyl reference.
Awww man. I'm lacking in a lot of knowledge to understand this video. Been bingeing Real Life Lore and Half as Interesting and this got recommended. Going to take a deep dive on here and come back to this hopefully with a better understanding of it. Subbed. 👍
16:18 FPTP and IRV are not representative voting methods FWIW due to vote splitting. Highly recommend looking into this - if you're interested in economics there's a good chance you're into game theory and mechanism design too.
The fact that the GDP halved after they privatized their public industry 💀
and they did bounce back after 4 or 5 years lol
shows the inefficiency of capitalism
@@nateisawesome766 Explain the Asian giants + China, all of Western Europe, Botswana, South Africa and Americas rise then. You're on a website created by capitalism. You're using a device created by capitalism. Don't talk about inefficiency unless you're using something created by an alternative
I never undestood why people use Nominal GDP to compare the economies of 2 or more countries. I mean i am a studying economics and it is mainstream economic theory that comparing the nominal GDP of countries is wrong and misleading. You should instead use GDP PPP in order to filter out the effects of different prices and the current exchange rate... For example Russian GDP in terms of nomial GDP in 2021 ( the official estimations (source: IMF) ) is $1.71 trillion making it the 11th largest economy adn the GDP in PPP terms is $4.32 trillion making it the 6th largest economy. Now excuse me but that seems like a massive difference and given that the difference is so massive i just don't get why some people still use nominal GDP instead of GDP PPP ( Parity of Purchasing Power ) when this is especially designed for comparing economic figures of different countries.
Here is a list of Nominal and PP GDP of different countries 2020
Nominal GDP PPP GDP
China $14,72 trillion $24,27 trillion
usa $20,93 trillion $20,93 trillion ( it is the sma since us is used as a benchmark )
India $2,62 trillion $9,9 trillion
EU $17,1 trillion $21.5 trillion (2021)
@@cro_wiz I have been there multiple times and i know a lot of people from there but thanks. Although your answer is completely irrelevant since it has to do with the purchasing power of an average citizen which is something that GDP PPP is not designed to calculate. Instead the GDP PPP is used to calculate the sum of the overall economy in such a way that it makes sense to compare it with the economies of other countries.
why? Because his intention is different then yours. He wants views , clickbait titles and to push RussiaBad narrative. Smaller than Texas he says, yet try to vanish Texas from the earths face and barely any nation would notice. Put few sanctions on Russia and everyone will be pikachufaced with increasing price of goods. There is such thing as replacement cost. But your typical western uneducated Blogger couldn't be bothered with such things. Such fools
Because Nominal GDP makes America look better.
because the aim of this fake video is to mislead people about Russia)
Informative, thank you. Explained just how I like it (and now to watch it again to catch any points I missed).
I'm sure somebody pointed this out already but the Swiss 5 Franc coin is 31mm in diameter, about the size of the US $1/2 or the Soviet 1 Ruble. The 1992 Russian ruble was 19.5mm, there's no Swiss coin close to that.
If anything like that happened (source?) then with the demonetized USSR ruble.