A shocking analysis reveals that there is a positive correlation between the economy and Russian soldier fatalities. This paradoxical trend is attributed to the wartime economy overshadowing the civilian sector.
The Wall Street Journal reported on Sunday that Vladislav Inozemtsev, a prominent Russian economist and director of a Moscow-based think tank, recently analyzed the war’s economic impact. His findings suggest that the death of men below a certain age in combat actually benefits the Russian economy.
Young recruits in the Russian military receive higher salaries and life insurance benefits than their civilian counterparts. If a soldier dies in combat, their family is compensated with approximately $150,000 dollars, exceeding the lifetime expected income of an average citizen. Additional military bonuses and insurance payouts further increase the total compensation. Inozemtsev said, “Going to the front and being killed a year later is economically more profitable than a man’s further life.”
In June, total death compensation reached $30 billion. This influx of cash to bereaved families has led to a 151% increase in bank deposits in some impoverished regions. In effect, military compensation has supplanted traditional poverty alleviation policies as Russia’s poverty rate hit its lowest level since 1995.
Western analysts estimate that over 600,000 Russian troops have been killed on the Ukrainian front. Russia recruits 30,000 new troops monthly to replenish its forces. The Kremlin has recently stirred controversy by reportedly receiving support from North Korea, which has sent about 10,000 soldiers.
Inozemtsev has dubbed this phenomenon “Deathnomics.” However, experts warn that this situation could prove disastrous for the Russian economy in the long term. They argue that artificially inflated incomes without corresponding productivity gains will only fuel inflation. Indeed, Russia’s statistics office reported that inflation approached 10% in September, with the price of staples like potatoes surging by 73%.
Inozemtsev cautioned that the Russian economy has morphed into a distorted structure overly dependent on the defense industry and military spending. He warned that these economic distortions will only intensify as the conflict persists.
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