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Russia: The Big Lies

Posted by Matt in July 1st, 2007

Russia today is a much diminished version of the Soviet Union. The population of 140 million is shrinking because of a plunging birth rate, and falling life expectancy. The Russian GDP, at $900 billion, is less than seven percent of the United States (which has more than twice as many people). That, however, is an improvement. In the early 1990s, when economists and accountants got the first good look at the Russian economy since the early 20th century, it was found that the Russian GDP was about four percent of the U.S. GDP. Add back all the lost components of the Soviet Union, and you still don’t have a GDP amounting to more than six percent of the American one. How did the Soviet Union achieve superpower status on such a thin economic base? They did it mostly with illusion, and an excessive arms budget that ruined the economy. Starting in the 1960s, the military got a priority on government spending, and permission to build an industrial complex that dominated the entire economy. This was part of a political deal, to keep one faction of the Communist Party in power.

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[Countries link to CIA Factbook. States link to Wikipedia.]


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