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this post was submitted on 16 Apr 2024
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Turns out the intl sanctions have just shifted Russia towards domestic industries and massive govt spending, invalidating half a century of propaganda against domestic spending and indigenous industry, oops!
Yes, the war has its negative impacts hidden by this metric, but Russia did the objectively correct thing by not scrambling to replace lost intl trade. Compare with the UK that hasn't made up for lost intl. trade since brexit and is still suffering for it.
Yep. When you spend your sovereign wealth fund on massive quantities of military hardware, your GDP goes up. The negative is that you quickly drain your sovereign wealth fund and you aren't investing in the future of your country. This money could have gone to getting the last 20% of Russians indoor plumbing, but it instead went to refurbishing tanks to get blown up in Ukraine.