Myth: Russian Economic Growth

The idea that the Russian Economy is growing is a myth if you break down the components of national income as simply as Y=C=I+G.
I draw a metaphor based on American History as to why people might believe the myth of Russian Economic power and why you should be skeptical and think critically in this regard.

[arnesbeganovic]

A European here. I have to agree with your metaphor about native Americans and viruses that arrived from Europe is quite on point and easy to understand.

[chrisrapert]

Thank you for a Floridian who speaks the truth to my fellow countrymen!!

[expatinmexico]

Keep speaking the Truth. Most people don't understand the huge importance of basic economics as it is a topic most people skip in school. Keep explaining their importance in simple terms. Russia is racing towards a living standard similar to N. Korea due to economic may be much sooner than most could even dream.

[barryhamm]

Good video Mark, the Russian economy is being kept alive by greatly only expanded military expenditure off-setting rapid declines in the civilian economy. Of course spending money on the military does little to improve the living standards of the population.

[yuzenpro]

I am from Russia and you are pretty much on the point. The major problem Russia is facing is the budget imbalance. They spend trillions more than they earn. So they are on the way to raising taxes for the general population to 15 and 20 percent from 13 and 15 accordingly. Also, the ruble rate will fall as the government has to pay domestically for the military

[Finnishguy]

Every single video is great on this channel, the only thing that surprises me is the relatively small number of subscribers, keep them coming thank you once again Mark

[surelyyoujokemeinfailure]

There are a great many people here in the USA who have no immunity to Russian propaganda. They say things like, "Eww, Ukraine is so corrupt" without realizing that Ukraine is in the middle of the list and making improvement, whereas Russia is at the bottom of the list (extreme corruption) and not improving at all.

[From_the_Outside_Looking_in]

love these informative videos! it's good to have someone like you explain these things to people who may be less informed and educated on these economical subjects, and to inform those about the spreading of Russian misinformation/disinformation, thank you for continuing to share the truth and your personal experiences to add some more weight to what you're saying for those who might be skeptical and even for me it's nice to hear your personal experiences since it adds validity to the counter-claims to the propaganda about how Russia's economy is "thriving" as the infamous Olga Skabeyeva would say lol

[fredyyfredfreddy]

When the interest rate is 16%, debt will quickly become very expensive.

[Mark-sdl]

Good message. May more people get the point.

[daniellarson]

A visual aid showing the equation may have helped. I found this: GDP = Consumption + Investment + Government Spending + Net Exports or more succinctly as GDP = C + I + G + NX Applying a little sense shows you are right.

Consumption has to go down because the products aren't available.
Investment by both people inside and outside Russia has to have dropped. Who wants to invest in Russia? (High Risk)
Government spending is up, but that is using up saved resources. They build stuff to be blown up and pay their military.
Net Exports are down due to sanctions.

Russians lie and say things are great. Are they trying to convince us or themselves?

[craigrosier]

A wonderful and precise message Mark. Many good unassailable points. I wish more people could hear and understand.

[aziggy]

This is an important episode and should have been aired on Fox News.

[oldguy]

Yeah, a little short on economic particulars but that is hardly surprising when Russia is not going to give a straight answer.

Thing is, I think that your feel for what is happening in Russia probably isn't far off base. The corruption is built into the system and there are a lot of reasons to doubt everything Russia says.

The one thing we do know is that at this time the Ruble is sorta not falling. But only sorta. There is what really looks like currency manipulation to keep the Ruble from falling. Best guess is that it is the Russian government that buys the Ruble every day and then someone sells and the Ruble falls again. This is happening in a fairly narrow range.

That said, the Ruble is much weaker than it was in the past. The ability to manipulate the currency both up and down on a nearly daily basis would tend to suggest that the Ruble is rather weak and the Ruble supply may be smaller than we might expect.

Overall a good video. Glad I watched/listened.

[mryouben]

The rushist empire is starting to crumble

[crissdizick]

Another excellent video. I have a Russian wife and i spend hours trying to explain to her the Russian economy.
You left out Serbia, thousands of young Russian men and women there. Not 4 years ago, mostly to avoid the draft.

[janebaker]

I like what you say. Maybe didn't understand it all, but I love your ensusiasm 🤔♥️

[jimglenn]

Russia has always been poor. There is great art, literature and music in St. Petersburg and Moscow but the rest of Russia has always been a muddy wasteland.

[paologaiba]

Can you explain the whole issue more in detail or with some graphics?

[cindyharris-sgef]

Appreciate you enthusiasm and knowledge. You are insightful and explain things good.