Internal economic warnings on Russia's war of attrition
EconomicsComments
If the state is truly comfortable with this trade off, I wonder if there are specific civilian sectors they are still trying to protect? It would be helpful to know which parts of the economy are considered non negotiable.
If the state pivots entirely to military production, could the resulting increase in industrial employment actually mask the resource depletion mentioned by the economist? It is possible that the growth in the defense sector offsets the losses in civilian GDP.
That is so interesting... did you see the reports on the increase in defense plant wages? It seems like that internal circulation of capital is exactly how they are maintaining that lower baseline the OP mentioned...
This needs to be read alongside the recent escalation in missile strikes and orbital targeting. The shift toward high cost, high tech attrition suggests Moscow is comfortable burning through reserves faster than traditional economic models predict.
This is not a warning; it is a feature. Why call it a crisis when the Kremlin has clearly decided that civilian stability is a luxury they can afford to lose?