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Monday, October 24, 2016

Who is responsible for the poverty of Russia

It’s autumn, but to endure the financial collapse we started a long time ago. In 2014 was introduced Western sanctions against Russia. Moscow responded in kind with retaliatory sanctions. Someone who gave more serious slap in the face, time will tell. Spitting of Western countries towards Russia has led to the fact that our country has lost $160 billion of investment. The amount is significant, but not critical. “After the fall of oil prices in our economy, not it’s $160 billion of the $500 billion,” — said two years ago Vladimir Putin. Foreign partners have restricted access to their banks. But $160 billion of the $500 billion is less than half. The lion’s share of investments we have received, even despite the efforts of detractors.

photo: Gennady Cherkasov

According to President Vladimir Putin, Russia’s economy is relatively easily crossed the artificial barriers set by some foreign countries to our economy. Putin then, and that was two years ago, added that the peak of the enterprises ‘ payments on foreign debts passed. The crisis phenomena in the economy of the country is the result only of external, but not internal causes. One such reason was the faster growth of wages.

The President then added that the fall in prices for traditional exports affected the national currency and forced the Central Bank to move to a floating exchange rate. Someone did not understand someone understood, but not appreciated.

We began to make more money? Of course not. Work in Russia became cheaper than in China. The average salary of Russians now is $433 per month. More you get not only the Chinese, but also the inhabitants of the poorer Eastern European countries — Romania, Serbia, Poland.

In the development of the economy China has long overtaken Russia. The Chinese GDP in 2015, almost 7%, and Russia fell by 3.7%. In dollar terms, Russian GDP amounted to about $1.3 trillion, and China is eight times more — $10.8 trillion.

Tell me that the real wages of the population adjusted for inflation was almost unchanged, but in nominal terms— even slightly increased. It’s true. But, on the other hand, real disposable incomes of our fellow citizens fell by 5.3%. It retards the growth of pensions from inflation, increased tax burden and an increase in the amounts of mandatory payments (loans, housing).

Impoverished people are starting to consume less and thereby hinders the economy. Loans can not support, because you remain prohibitively expensive by world standards.

In spring the Ministry of economic development proposed to freeze salaries until 2018, and thus to ensure economic growth. The Ministry believes that one of the scenarios of development of economy in conditions of crisis. According to the Bank of Russia, the budget deficit in 2016 will be 3.5% while the benchmark 3%. To cover the deficit in the current year will require the Reserve Fund to $ 2.4 trillion. rubles.

Seriously, but requires a lot of questions. If you care about the interests of ordinary people, it is not necessary to expect that such a move will ensure economic growth. All will not care that the government was taking to overcome the crisis. Parmers will buy in Belarus (of course Polish), fish to draw in China or Vietnam, pork and beef — take in Germany to circumvent sanctions methods learned long ago.

So what we’re fighting. Perhaps with themselves. It is believed that cheap labor increases the competitiveness of any economy. He became one of the key components of the Chinese “economic miracle.” In Russia it can not count. We primary not people, and investment. Maybe it makes sense to first return the investment, not to close access to their return and not jump over every penny you throw us in the hat of the homeless.


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