Summary

Regardless of Putin’s decision regarding the war in Ukraine, Russia’s economy is facing a crisis due to factors such as sanctions, a shrinking sovereign wealth fund, and a labor shortage. The war has boosted growth, but Russia cannot sustain it without significant economic consequences.

  • DragonConsort
    link
    fedilink
    English
    arrow-up
    60
    arrow-down
    1
    ·
    2 months ago

    I’m not an economist or even especially well informed, but… Isn’t war kind of… You know. Expensive?

    Yeah I know it could pay off in the long term if you just swept up a country’s worth of innocents, genocided them and grabbed their land (Hi Israel), but… Fuck up the war badly enough, and there’s not going to BE a long term, just because the economy collapses. Right?

    • Kidplayer_666@lemm.ee
      link
      fedilink
      English
      arrow-up
      45
      ·
      2 months ago

      Bold of you to assume China will just let russia collapse. Ideally, China economically subjugates Russia and makes it essentially a satellite state

      • InverseParallax@lemmy.world
        link
        fedilink
        English
        arrow-up
        31
        arrow-down
        5
        ·
        2 months ago

        The plan is to split Russia, the west bit (with the people) goes to Europe to deal with, the east bit (with the land and more resources than God) goes to China.

        And that gives us all 50-100 years of peace while both sides slowly digest what they have to deal with.

        Yes, Europe gets the shitty half of this deal, but they also get security, and the only person to ever successfully charge from China, across the whole Russian steppe to attack Europe was Genghis Khan, doubt that’s happening again.

    • PugJesus@lemmy.world
      link
      fedilink
      English
      arrow-up
      30
      arrow-down
      1
      ·
      2 months ago

      War being expensive is especially ruinous with modern (ie anytime past the 18th century AD) countries being deeply interconnected through market systems. All that money just pissed away trying to grab someone else’s land? Every other country in the world was investing that money in material or human capital incentives. When peacetime returns, unless you have a massive waiting market for your war economy production (like the US after WW1 and WW2), you will be at a massive disadvantage in the world market - causing a large number of domestic industries to suffer as they’re undercut by products of either superior pricing/availability, quality, or both.

      At this point, you can swing towards protectionism - but that will reduce the standard of living and efficiency of domestic industry as well, and potentially lead to backlash from other countries imposing protectionist policies in kind, damaging your exports and leaving your nation even poorer. So at the end of the day, no matter what you do, you’ve fucked over your own industries and budget for years at minimum, requiring significant political capital and competence in government just to make up the difference and catch up to the rest of the world - and that’s not even getting into damage done to diplomatic reputations, actual loss of materiel, and the sheer human cost of throwing people into the meat grinder.

      War requiring a war economy is a no-win scenario in the vast majority of cases.

    • catloaf@lemm.ee
      link
      fedilink
      English
      arrow-up
      5
      ·
      2 months ago

      You’d think they’d have learned from the cold war, but I guess not.

      • partial_accumen@lemmy.world
        link
        fedilink
        English
        arrow-up
        14
        ·
        2 months ago

        You’d think they’d have learned from the cold war, but I guess not.

        Well, many parts of them have. Eastern Europe, formerly under Soviet conrol, is now firmly in market economies. Armenia has left the CSTO (Russia’s wish.com NATO), and Ukraine famously kicked out its Russia puppet leader. All of these were part of the Soviet Union or under their control before.

      • eran_morad@lemmy.world
        link
        fedilink
        English
        arrow-up
        7
        ·
        2 months ago

        fuckwits don’t learn from history. putin has a vast wealth of real-world failure from which to draw lessons, such as the soviet occupation of afghanistan. but, no. he needed to stroke his pencil dick over some old maps of the Blyat Empire. and now russians have to join in the suffering they brought on their cousins.

  • foggy@lemmy.world
    link
    fedilink
    English
    arrow-up
    24
    arrow-down
    3
    ·
    edit-2
    2 months ago

    I have a dream where I visit St Petersburg, Finland soon.

  • neidu2@feddit.nl
    link
    fedilink
    English
    arrow-up
    14
    ·
    edit-2
    2 months ago

    They could have stopped at any time, but once their three day plan failed, putin decided to engage in a money-burning competition against a group of countries with a combined gdp roughly 25 times theirs…

    • Makeitstop@lemmy.world
      link
      fedilink
      English
      arrow-up
      27
      ·
      2 months ago

      He’s not relying on Ukraine’s allies running out of money, he’s betting that they’ll lose interest and/or vote for pro-Russian stooges before he loses the ability to win the war.

    • Nalivai@lemmy.world
      link
      fedilink
      English
      arrow-up
      1
      ·
      2 months ago

      For him this is the best possible outcome. He remains relevant and firmly planted on the throne until he dies. Endless but not very active trench war is his dream, even a victory, whatever that could look like, is worse for him

  • bigFab@lemmy.world
    link
    fedilink
    English
    arrow-up
    7
    arrow-down
    1
    ·
    2 months ago

    …not if he wins the war. Like japanese in late WWII. Die hungry or die fighting.

    • Nalivai@lemmy.world
      link
      fedilink
      English
      arrow-up
      1
      ·
      2 months ago

      Not only there is almost no possible scenario of him winning by any possible sane metric, there is no reality when Russia is recovering from this shit without fundamental changes. Whatever win can be, it’s impossible and wouldn’t help.

      • bigFab@lemmy.world
        link
        fedilink
        English
        arrow-up
        1
        ·
        2 months ago

        I absolutely agree with you on the impossibility to win by Russia, unlike most people nowadays. Like the ones who are sure Russia will win the instant Trump gets to office. Not even close to military complex and diplomacy realities.

        About recovering economy, history proves the loser always loses big. Russia would never recover from war reparations + sanctions, unless it completely became a Nato satellite state, like Germany and Japan did after WWII. Of course we all know that will never happen with Russia.

        Just to remember the only State in history to pay full war reparations is Finland and they did no big destruction.

  • Media Bias Fact Checker@lemmy.worldB
    link
    fedilink
    English
    arrow-up
    2
    arrow-down
    5
    ·
    2 months ago
    Insider - News Source Context (Click to view Full Report)

    Information for Insider:

    Wiki: mixed - There is no consensus on the reliability of Insider. The site’s syndicated content, which may not be clearly marked, should be evaluated by the reliability of its original publisher. See also: Insider (culture).
    Wiki: reliable - There is consensus that Insider is generally reliable for its coverage in its culture section. See also: Insider (excluding culture).


    MBFC: Left-Center - Credibility: High - Factual Reporting: Mostly Factual - United States of America


    Search topics on Ground.News

    https://www.businessinsider.com/russia-economy-crisis-ukraine-war-moscow-inflation-sanctions-putin-spending-2024-10

    Media Bias Fact Check | bot support