With Savings to Burn, Russia Turns (Again) to a State-Led Spending Plan

The framing of this article is disingenuous at best. The Obama stimulus was roughly 6% of GDP and was supported if not hailed by popular liberal economists in the United States. In fact, Paul Krugman spent many months arguing that the problem with the stimulus was that it wasn't big enough. However, Russia's planned stimulus is framed as return to a planned economy, despite the fact that it is proportionally the same, representing approximately 6% of GDP. Russia's further measures (increasing the retirement age and tax rates) to offset the cost, should be applauded as responsible fiscal measures. Indeed, the increase in the retirement age simply brought Russia in line with most western countries. It is more of a testament to the stability Mr. Putin has brought to the country after the tumultuous 90s that life expectancy in Russia has recovered to point where it is even thinkable to raise the retirement age to sixty-five. This stinks of the highest form of cultural appropriation. We take their problems and we sanctimoniously criticize from afar without having the integrity to put such actions in the proper context.

"Economists don’t consider either of these eye-popping sums of savings a good thing." Ah, economists, they hold way too much sway over public policy, way disproportionate to what they actually know. Spend, spend, spend is their mantra. My dad, in the 1950s, emphasized savings, and I've abided by that all my life. I started with a little passbook savings account. Economists may say that I haven't helped the economy as much as I would have it I had spent, spent, spent. Maybe it depends on assumptions and what you are measuring. I've skipped the shiny stuff all my life, without sacrificing living my life in any meaningful way whatsoever. At 70 I have substantial savings. I can live comfortably without having to exhort those around me to spend, spend, spend to help the economy. I exhort those around me to ignore economists, think for yourselves, and emphasize saving.

If this is not somewhat true in the USA why do we have so many corporate lobbyists and ex politicians working for hedge funds? Corporations are the only immortals with inalienable rights. Oligarchs are apparently loyal to a specific country out of financial interests. The Plutocracy has become a hidden government while pushing for lower taxes, looking out for multinational interests through monopolistic policies has undermined Democracy. The exorbitant wealth of a few in Russia or the USA leaves the business of redistribution to government or in conservative terms the fate of trickle down economics at the leisure of paid for biased politicians.

Interesting. Looks like Russia is looking to return to a planned economy. Didn't work so well last time, note.

If only the Russians had talked to Mitch McConnell back in 2011. Obama's infrastructure bill would have similarly stimulated our economy. But that's right...McConnell was set on making Obama a one-term president by making sure we had an "anemic recovery" that he could point to for 8 years.

Well, living in Washington, DC, all I can do is applaud the Russians for this. Investment in infrastructure remains ever elusive, even while it's desperately needed. Trump touts infrastructure. Reals plans don't materialize. Russia is pouring money into ports, roads and hospitals!? Wow. Here in the US, all we can do is to be green with envy.