Russia’s Economic Crisis is Worse Than You Think
Paul J. Warburg
24 min
Russia's economy is extremely weak because it is built on an extremely shaky foundation. Russia has self-inflicted all of these problems by choosing war over working its own field.
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Vladimir Putin
Chapters
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0:00
The War Economy Trap
Russia faces massive expenses for soldiers and workers while revenue drops due to lost sales.
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3:12
The Bankruptcy Principle
A country cannot sustain spending far exceeding income for long without severe consequences. Russia hides its crisis by devaluing currency and spending past savings rather than growing.
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8:14
The Depleting Savings Account
Russia has reduced its pre-war savings from hundreds of billions to perhaps 10 or 15% remaining. Russia's economic minister warned that if things do not change soon, Russia will indeed experience a recession.
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11:19
The Bank's Silence
Russia's largest bank has not financed a single new project over the past year.
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14:24
The Labor Shortage Crisis
High defense wages are stealing workers from regular industries, leading to future unemployment.
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16:26
The Dutch Disease Trap
Russia's over-reliance on energy revenues has left its other industries vulnerable to collapse.
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19:14
The Banking Collapse
Banks are over-leveraged with unrepayable loans and cannot return deposits to citizens.
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21:37
The Self-Inflicted Crisis
Russia threw away legitimate growth opportunities by choosing war over working its own field.
Key points
- 0:00
Russia faces record-breaking military salaries and unprecedented death benefits for soldiers.
- 0:00
Russia pays high wages to domestic workers due to massive labor shortages caused by the war.
- 0:00
Russia experiences drastically reduced revenue as buyers refuse to pay full price or stop purchasing.
- 8:14
Russia's pre-war savings account has fallen from hundreds of billions to perhaps only 10 or 15% remaining.
- 8:14
Russia's economic minister warned that if conditions do not change soon, Russia will indeed experience a recession.
- 11:19
Russia's largest bank has not financed a single new project over the past year.
- 14:24
High defense wages are stealing workers from regular industries, leading to future unemployment.
- 16:26
Russia's over-reliance on energy revenues has left its other industries vulnerable to collapse.
- 19:14
Russian banks are over-leveraged with unrepayable loans and cannot return deposits to citizens.
- 21:37
Russia threw away legitimate growth opportunities by choosing war over working its own field.
Who and where
People · 1
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Vladimir Putin 6
President of the Russian Federation
Photo 1
1. Photo: Пресс-служба Президента России, CC BY 4.0, via Wikimedia Commons · Wikidata · redrawn in our house style (Vladimir Putin)
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