Russia Economy Revealed

Most Americans, myself included, have come to the belief that Russia is a terrible place to live. The Oligarchs control everything leaving the people to live in misery and fear.

However I came across a blog post on Zero Hedge. It makes some surprising revelations as to what life is really like economically in Russia. I don't post this to be anti-American or pro-Russia. I am only after the truth.

Stable gross domestic product growth, declining inflation and a record-low unemployment rate are pointing to positive consumer purchasing power in Russia. The Russian middle class, which stands at 104 million strong, is fueling that power. This segment of the population is projected to rise 16 percent between now and 2020, at which point it will represent 86 percent of the population and amount to $1.3 trillion in spending—up 40 percent from 2010, based on a global study of the emerging middle class and related databases by Dr. Homi Kharas of the Brookings Institution.

Market Based Approach to Russia

While the top 20 percent of income earners in Russia represent 47 percent of the country’s total income, the middle 60 percent accounts for 48 percent, according to federal statistics from the Bank of Russia (2012). The bottom 20 percent comprise the remaining five percent of income.

Russias growing Middle Class

And we wonder why many Alaskans would rather be part of the Bear.

reply to post by sligtlyskeptical


Now compare that to the thread I started last night about America's wealth distribution and our middle class. It's pretty obvious something broke here. Russia's economy sounds pretty close to what 9 out of 10 American's thinks is ideal!

reply to post by halfpint0701


Americans are too intellectually lazy to actually discern what they want. If they had to think about it and actually learn what the reality really was, it would be too much for most of them. It sure doesn't make me feel all warm and fuzzy.

But what is the anti russian crowd going tell us now?!?!?
Russia is bad and putin is a loonie, but you cant put decent economy with that, it destroys the loonie part a bit.

Man lets see how they try to spin this.

Russia's economy seems to be stable, growing slowly instead of the way most of the industrialized countries have chosen. Russia will eventually have problems just as we are experiencing, but that will be down the line somewhere.

China chose to grow too fast, that is a problem. They listened to the flawed perception of the west. The only way that the current economy of the west and Europe can work is if they get other countries citizens to work for peanuts and hoard the profits in the upper class.

Now, I wouldn't listen to me if I were you, I have no degrees in Economics and don't understand how this consumer based economy could have even gotten this far in this country. People working and creating little that they really need does not fit into my comprehension. It seems like what collapsed all the old economies in the world. I suppose a controlled collapse of the economy will be done, trouble is we exported all our jobs and many people will lose everything because they owe too much.

Oh well, it has been fun while it lasted.

I was actually thinking about starting a topic asking people who lived both in Russia and USA for their view.
Thank you for some insight.

I hope there are members who have experience living in both countries and are willing to share it with the rest of us.

rickymouse
Russia's economy seems to be stable, growing slowly instead of the way most of the industrialized countries have chosen. Russia will eventually have problems just as we are experiencing, but that will be down the line somewhere.

China chose to grow too fast, that is a problem. They listened to the flawed perception of the west. The only way that the current economy of the west and Europe can work is if they get other countries citizens to work for peanuts and hoard the profits in the upper class.

Now, I wouldn't listen to me if I were you, I have no degrees in Economics and don't understand how this consumer based economy could have even gotten this far in this country. People working and creating little that they really need does not fit into my comprehension. It seems like what collapsed all the old economies in the world. I suppose a controlled collapse of the economy will be done, trouble is we exported all our jobs and many people will lose everything because they owe too much.

Oh well, it has been fun while it lasted.

Obviously, since you nailed it, an Economics degree is not necessary. In fact it makes you wonder if an Economics degree is worth anything at all, considering what a deep mess Economists have gotten us into. I did study economics and not a day went by when i questioned most everything i was taught.

reply to post by sligtlyskeptical


Some economists have tried to warn of this happening, but they have been ignored. This run away fake growth on paper, utilizing numbers that use ever changing deceitful formulas to hide things is the problem. Seems that this belief in deceit is considered and promoted as normal now amongst many countries. Growth is not even needed, sustainability and proper rollover is needed.

Putting every citizen into debt to stimulate spending and make things look better than they are is not the right way to go with an economy. Then they said if you didn't borrow money because you did not need to, your credit score was not good for lack of credit. You wind up paying more interest to borrow money without a good credit score. This weird system did have government involvement, it was not just the banks. The government allowed this promotion and possibly it was actually initiated by someone in the government unit overseeing the banks. I think everything is related myself, but the perception of society and the Belief in need for economic growth is actually what is driving this, not a certain group or individual per se.....I have no clue how to spell per se.

We got what we got and it will be hard to fix it because it has gone perpetual within society.

demus
I was actually thinking about starting a topic asking people who lived both in Russia and USA for their view.
Thank you for some insight.

I hope there are members who have experience living in both countries and are willing to share it with the rest of us.

I'd like to see how that turns out as well. I have considered moving to Russia many times in the last few years as it seems to be a "freer" place to live than the Governments Socialist Oligarchy of Canadakistan. I just don't like the cold, but Crimea might be good LOL, it is a "hot zone."

Cheers - Dave

Most relevant information when you compare some economies is these:

GDP > Purchasing power parity
Russia-$2.49 trillion. Ranked 6th.
US- $16.24 trillion Ranked 1st. 7 times more than Russia

GDP per capita
$14,037.03 Russia Ranked 44th.
US- $49,965.27 Ranked 10th. 4 times more than Russia

GINI index
Russia -39.93 Ranked 13th.
US- 40.81
Ranked 16th. 2% more than Russia

On GINI index they are almost equal.
So again i will say to you:

Hang on


Sorry I've got to stop this delusion in its tracks we can't have even more BS spreading to more uneducated people



Oh look china sitting next to there friends





Look idyllic and not to mention very modern doesn't it?

Let's not get started on their barbaric human rights
worldhumanrights.wordpress.com...


Remember folks.

Love Russia?

Go love it there and stop sponging of our welfare system keeping you warm and fed

Same goes for those of you who live a abroad and have received decades and many billions worth of aid from the western world and now want to have a pop...

reply to post by TritonTaranis


That last photo of yours is a bit disingenuous. I can cherry pic some pictures of Michigan that will make that photo of Russia look like a five star resort.

xavi1000
Most relevant information when you compare some economies is these:

GDP > Purchasing power parity
Russia-$2.49 trillion. Ranked 6th.
US- $16.24 trillion Ranked 1st. 7 times more than Russia

GDP per capita
$14,037.03 Russia Ranked 44th.
US- $49,965.27 Ranked 10th. 4 times more than Russia

GINI index
Russia -39.93 Ranked 13th.
US- 40.81
Ranked 16th. 2% more than Russia

On GINI index they are almost equal.
So again i will say to you:

America's national debt. $17,553,486,232,983.75
Russia's national debt. $203,187,333,444
Say what you want right now Russia is doing better than America money wise. And their middle class is on the rise while in America the elite is trying to kill ours off.

reply to post by TritonTaranis


You do realize that your link about Russia's "barbaric human rights" could easily be written as a letter to Obama about the same issues in our country.

From your link talking about the poor and homeless:

They don’t need simply just handouts Mr. President they need opportunities to better their lives. They need a chance to improve their lot in life. They need support from their communities. They need someone to have compassion for them and to treat them with dignity and kindness. They need a way out of poverty and a chance for a better life.

Why our minimum wage is not a living wage

In the state of Ohio on any given night, more than 12,000 people are homeless with more than 1,500 of those persons going unsheltered.
Source: COHHIO’s 2009 Ohio Homelessness Report

In Ohio, the Fair Market Rent (FMR) for a two-bedroom apartment is $714. To afford this level of rent and utilities––without paying more than 30% of income on housing––a household must earn $28,150 annually, or $13.53 per hour (assuming a 40-hour work week, 52 weeks per year.) Ohio minimum wage is $7.40. To afford FMR for a two-bedroom apartment, a minimum wage earner must work 72 hours per week, 52 weeks per year.
Source: National Low Income Housing Coalition’s Out of Reach 2011 Report

National

In January 2011, an estimated 649,879 people experienced homelessness in the United States of America. 62% of homeless people counted were sheltered and 38% were unsheltered. 63% of homeless people counted were single adults, and 37% were persons living in families. 17% of homeless people were reported as chronically homeless, which, according to HUD’s definition, means they are homeless for long periods or repeatedly and have a disability.
Source: HUD’s 2010 Continuum of Care Homeless Assistance Programs Homeless Populations and Subpopulations

The 2011 national Housing Wage for a two-bedroom rental unit is $18.46. A full-time worker must earn this wage and work year-round in order to afford the national average Fair Market Rent of $960 per month.
Source: National Low Income Housing Coalition’s Out of Reach 2011 Report

Here's a snippet from your link talking about drug addiction:

They don’t need a jail cell, rather they need a place to go that can help them through their drug addiction. They need compassion and patience.

Here's the reality of drugs in ONE COUNTY in ONE STATE of the US in 2013:

CLEVELAND, Ohio -- Heroin killed 195 people in Cuyahoga County last year, according to the medical examiner’s final count released Thursday.

The death-dealing drug took more lives than homicide and shattered the 2012 record of 161 fatal overdoses.

Source

Do not assume that because I think our system is broken, I am a welfare receiving bum. I have worked very hard for what I have and give back to my community both monetarily and through volunteer work. I have never been through the welfare system, but that doesn't mean I am not aware of how skewed our current system is.

reply to post by rickymouse


The fact is that as natural resources get consumed, their prices increase. This should put pressure on income levels.

I think Russians are fine. They have a decent living standards. Since Russian population is stable, there is no need for a big economic expansion.

It is very important for incomes to be evenly distributed. Too rich and too poor are problems.

Russian government admits economy in crisis as Ukraine weighs

Russia's economy was struggling even before the recent rise in geopolitical tensions surrounding Ukraine and some softer economic data from China," said Alexander Morozov, chief Russia economist at HSBC in Moscow. "Possible economic and financial sanctions on Russia add to the uncertainties."

MOSCOW (Reuters) - Russia's government acknowledged for the first time on Monday that the economy was in crisis, undermining earlier attempts by officials to suggest albeit weakening growth could weather sanctions over Ukraine.

mobile.reuters.com...

This article is only a week old.

reply to post by TritonTaranis


have you ever been in Russia?

reply to post by buster2010


Debt is not so important , when you have rating AAA, you can roll.

reply to post by xavi1000


Yep. If the United States are good boys and girls and start paying their bills on time, then one day they will have a AAA credit rating; you know, since they were down-graded to AA+ back in 2011. That said, Russia is sporting a BBB rating. Seriously though, it's all a joke. If it truly mattered, one of the countries with a better debt rating would use their A's to beat down Russia's B's, then the Crimea would belong to them. Not holding my breath.