July 14th, 2024

How the war in Ukraine is reviving Russia's rustbelt

The war in Ukraine is boosting Russia's economy through reactivated Soviet factories in regions like Chuvashia. This has led to job opportunities, wage growth, and increased industrial output, but inflation is affecting purchasing power. The economic effects are shaping political views and supporting the conflict, although experts warn of limited long-term impact.

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How the war in Ukraine is reviving Russia's rustbelt

The war in Ukraine is revitalizing Russia's rustbelt regions like Chuvashia, where Soviet factories are being reactivated to support the military. State orders for military supplies are injecting money into the economy, leading to a 3% growth forecast for Russia this year. This economic boost is most evident in manufacturing regions, benefiting low-income segments of the population. The war has led to increased industrial output, job opportunities, and wage growth, with some workers experiencing significant pay raises. However, inflation has offset some of these gains, impacting purchasing power. The war's economic effects are influencing political views, potentially bolstering support for the conflict. While the war economy has provided temporary benefits to regions like Chuvashia, experts caution that the long-term impact may be limited. Despite uncertainties about the sustainability of this economic boom, workers are making the most of the current opportunities presented by the war-driven economy.

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By @simonblack - 3 months
Why do you think the US was so rich and vibrant in the 1950s and 1960s?

All that wealth from the industrial growth over the WW2 years.