https://www.cnn.com/2024/11/18/economy/russia-inflation-new-heights-intl-analysis/index.html

Inflation is being driven by the rapid rise in wages as the Kremlin pours billions into military industries and sends millions of men to fight in Ukraine. In the middle of a war, companies outside the defense sector can’t compete for workers without paying much higher wages. In turn, they charge higher prices. So the spiral continues.

“Prices are rising because of the war,” Alexandra Prokopenko at the Carnegie Russia Eurasia Center in Berlin told CNN. “Demand in the economy is distorted in favor of unproductive spending. Wages rise because employers have to compete for labor.

  • FuckyWucky [none/use name]@hexbear.net
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    8 days ago

    In turn, they charge higher prices. So the spiral continues.

    wtyp time to reduce profit share

    And when the war ends, Russia will have to adapt to a post-war economy, curbing state spending, reintegrating huge numbers of demobilized soldiers and reorientating companies away from feeding military industries.

    or they could not do that, implement a jobs program so that all the demobilized soldiers can get a job in the public sector instead of being unemployed.

    I mean it is clear that even the CNN knows there won’t be a Zimbabwe style scenario in Russia in part thanks to the economic policies of the Soviet era.

    • Infamousblt [any]@hexbear.net
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      8 days ago

      No see Putler and Ruzzzia are all totally dumb irrational actors and they can’t possibly think of a complicated solution such as “put all those soldiers to work on public things”. They’ll surely just let all those soldiers go instantly unemployed and let them be disgruntled and that will lead to a western friendly revolution! Putin cooked himself here and can’t possibly think of ways to prevent it!