First, let me say that none of what I am writing is related to the on-goings in the Ukraine at this time.
The United States is still the world’s leader in terms of GDP. Despite growing poverty – the numbers, as real as they are assumed to be, look impressive. The United States…. along with its citizens, is up to its neck in debt. The United States’ impressive GDP numbers have been created by debt. More debt will not cause any growth. The debt on the books will likely send the country into a massive depression.
Russia typically runs a budget surplus.
Anywhere there is power, the government is served first. Those with political power get what they want out of government. It works that way with Russia also. That is the nature of government. Power corrupts. Concentrated power corrupts even more. Of course, absolute power corrupts absolutely. Getting Russia to do what I am about to suggest, may not be doable.
Russia is described as having a mixed economy. All Russia would have to do is embrace free markets and its economy would go ballistic. I know nothing about any desires on the part of Russia to go the imperialist route. Let’s look at which nations have become great empires.
These countries are the United States, Great Briton…. and to some degree France – which really only made the effort. Democracy and free markets don’t automatically lead to the most peaceful nations. Why? They develop a huge production power. They can fight more wars and win because they have better equipment.
That doesn’t have to happen. It is just more likely that it will.
A high GDP number does not mean a high living standard for ordinary people. It just means that total economic output is substantial. The population of Russia is only a fraction of that of the United States. Chances are their total GDP number would lag both the United States and China.
There are countries with modest overall GDPs where citizens live quite well. Russia has the chance of multiple centuries to raise the living standards of its ordinary citizens to the highest in the world. The United States has scrapped its free market system and is going with central planning. That guarantees struggles from now on. Probably few in Russia think along these lines.
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