Wednesday, January 31, 2024

Russia Handling Sanctions Worse Than It Pretends

 The cost of shipping energy products to more distant customers, the loss of workers to frontline duty and to international flight, and the inability to tap foreign resources to support local operations have left Russia in an economic crisis that its propaganda efforts and international denials cannot hide. The price of eggs increased 18% last month (December 2023) in that one month alone. The Russian Federation has been propping up the economy by directing long-husbanded resources into military-oriented manufacturing, but causing an explosion in Ukraine does nothing for quality of life within Russia; the transformation of Russia into a wartime economy currently directs a third of the federation's national expenditures into the military

While Putin claims in his speeches that Russia's economy thrives despite foreign barriers to trade with most of the free world, much of the nation's current production does nothing for Russians: rockets aren't infrastructure, they destroy infrastructure. This game of economic chicken is profitable only if Russia ultimately seizes Ukraine and its natural resources and can compel the service of its millions of inhabitants. Forcing people to serve Russia's tyrants isn't a particularly efficient way to build national wealth, but it's all tyrants know. And they're used to the inefficiency: per-capita GDP within the Russia's empire is so small that despite having many times the population of Texas, the empire's overall GDP was lower even before sanctions cost Russia all the foreign expertise that had kept its energy industry in business. GDP per capita in Russia has been on par with China, at a fraction of GDPs typical of democracies in Europe or Asia.

If nobody throws the Russian tyranny a lifeline, it will likely digest itself trying to threaten neighbors into surrendering to Russia's appetite for geographic expansion. 

Halting Russia's advances into Ukraine has been an efficient investment for the United States. For only a few percent of the existing US defense budget, the United States has created a state of emergency in its most aggressive international adversary which is spending not just a third of its military budget, but a third of its entire national budget, to hand onto its untenable position. Especially since Ukraine is willing to contribute all the combat personnel, supplying them with equipment to test and improve American tactics and methods against Russia's current best technology and electronic systems is a fantastic investment in the future of our defense of American interests and the interests of democratic trading partners around the world.