How the war in Ukraine boosted Russia's economy. #Russia #Ukraine #Economy

------------------------------------------------------
Insider's mission is to inform and inspire.

[billyjones]

This is why you don't use chatgpt for journalism. Absolute failure of integrity.

[BeaverZer]

This is a very surface level understanding of how economies work.
The economy is on fire because the federal government is buying everything that is produced because its in full war time economy mode.
The issue with this is that your country is no longer trading externally and its smashing the piggy bank to do it, because if you aren't selling goods to foreign nations, where are you getting the money to buy stuff for the war economy?
This has a two fold effect. The first is that unemployment is low and all companies have a buyer of goods because the gov will guy anything you produce at almost any price.
The other is that all those companies stop trading with their external trading partners and sell only to the gov. Long term this makes it so they lose position on global markets as other companies in other countries secure the contracts that were once going to Russian companies.

This is a well studied effect of being in a war economy. They don't collapse.... Until they suddenly do. That piggy bank is running out every day, when its empty, your country won't be able to import anything as noone will send you billions of $ of goods for a Russian IOU.

[steveprocter]

This seems to be just ever so slightly at odds with the fact that the Russian Federation dropped out of the world's top ten economies just last month!

[Haanjii]

We want to know about Palestinians conditions as well!