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this post was submitted on 26 Jul 2026
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Considering spending on military adds zero value to society, Russian society already had negative real GDP last year.
Meaning the civil economy to lift the military spending was already declining last year, and the ability for Russia to keep military spending high has been constantly declining for a while now.
The Russian government is currently at wild over-expenditure, and the Russian economy has shown no interest in buying federal bonds despite 4 recent attempts to sell them! Giving the Russian government few options to finance the spending, other than increasing taxes further.
The amount of economic gymnastics the Russian federal government has performed the past few years is astonishing, probably worthy of a gold medal in international economics, but the tricks have been exhausted, and every segment of the Russian economy is drained to near bankruptcy, and some of them even beyond, but bankruptcies have been avoided because Putin has made it illegal to declare companies of key industries bankrupt!!
But Putin insists on keeping the military spending way above what Russia can afford, just like the Soviet Union did to compete with USA. And just like last time, we are seeing Russia go bankrupt and collapse as a society exactly like the Soviet Union did.