Amusingly, we’re seeing history repeating itself here. In the early 20th century, while western economies were becoming increasingly intertwined, the Soviet Union stood apart. As the sole communist state, its trade connections with the capitalist world were minimal. This isolation would prove crucial when the Great Depression struck.
Unlike capitalist countries, whose closely linked economies suffered devastating blows, the Soviet Union’s closed system largely shielded it from the crisis. In fact, one could argue that the depression even benefited the USSR.
Desperate times in the West created a unique labor pool for the Soviets. To fuel their ambitious industrialization plans, they recruited skilled workers, especially from the USA. Engineers, farmers, and industrialists flocked to the USSR, eager for work and the chance to contribute to building a new society.
American farmers, with their vast experience in large-scale agriculture, played a key role in developing Stalin’s collective farms. The Dnieper Hydroelectric Power Station benefited from the experience of American engineers, six of whom received the prestigious Order of the Red Banner of Labor for their contributions.
Today, Russia is likewise benefiting from being decoupled from the west which insulates it from the economic disaster that’s currently unfolding.
In July Mr Putin doubled the federal bonus for those signing up to fight from 195,000 roubles ($2,200) to 400,000 roubles, which regional authorities are supposed to top up. The government is committing vast sums on compensation to the families of those killed in action. And Russia’s splurge goes beyond war-related spending. Mr Putin is lavishing money on welfare payments: in June he raised pensions for some recipients by close to 10%. The government is also spending big on infrastructure, including a highway from Kazan to Yekaterinburg, two cities 450 miles (729km) apart. Indeed, it is spending on pretty much whatever takes its fancy. Mikhail Mishustin, the prime minister, recently boasted about a government scheme to pay for children to holiday in Crimea.
“Lavishing” on pensions. Imagine trying to paint that as a bad thing. Wonder how Yankees feel when they find out that the country they’re blowing hundreds of billions on to wage useless wars has free healthcare too.
The US has demonstrated (pathetically) why they don’t have healthcare (unfortunately, they’ve been demonstrating it for almost a century by now if not more), next up, they can show us why they won’t have their pensions. And who knows what will be next after that? 😂
I would guess most USians already don’t have pensions. The majority have 401ks, which are tied to the stock and bond markets. Some don’t even have those, and have to scrape by on Social Security, which was only ever intended to be a supplement to pensions.
That’s a good point, and to my understanding many pension funds are also deeply tied into the stock and bond markets (among other things). And at the end of the day they (and the 401ks, and social security, and everything else but the MIC and big capital) is going to be left holding the bag, of course…
