Russia’s economy is doomed

[VBer]

16 hours ago, candide said:

Guess which country is not in the top ten? 🤣

 

https://www.jagranjosh.com/general-knowledge/worlds-largest-economies-1694256013-1

 

GDP comparisons using PPP are arguably more useful than those using nominal GDP when assessing the domestic market of a state because PPP takes into account the relative cost of local goods, services and inflation rates of the country, rather than using international market exchange rates. 

Here the list of countries by GDP using PPP.

https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)

 

Guess which country is in the top ten? 🙂

[candide]

37 minutes ago, VBer said:

 

GDP comparisons using PPP are arguably more useful than those using nominal GDP when assessing the domestic market of a state because PPP takes into account the relative cost of local goods, services and inflation rates of the country, rather than using international market exchange rates. 

Here the list of countries by GDP using PPP.

https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)

 

Guess which country is in the top ten? 🙂

Nice try! PPP is relevant in order to assess the local dimension of the economy. In particular the standard of living in a country. That's why it is called Purchasing Power Parity. However. It is irrelevant to assess to global position of a country. A country doesn't buy or sell anything in PPP.

 

BTW, in this respect, PPP is usually used per capita. Guess which country is not even in the top 40? 

https://en.m.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)_per_capita

[VBer]

39 minutes ago, candide said:

In particular the standard of living in a country.

I not agree wiith it. The standard of living in a country relevant to GDP (ppp) per capita as in your link. In that term you are right, the standard of living in Russia is pretty low.

However GDP by PPP represents whole economy more precisely than nominal GDP

[candide]

4 minutes ago, VBer said:

I not agree wiith it. The standard of living in a country relevant to GDP (ppp) per capita as in your link. In that term you are right, the standard of living in Russia is pretty low.

However GDP by PPP represents whole economy more precisely than nominal GDP

I asked Copilot (ChatGPT), in order to get an external assessment. Here's the reply:

 

### Nominal GDP:
- **Definition**: Measured at current market exchange rates, reflecting the value of goods and services in terms of the local currency converted to a common currency (usually USD).
- **Best for**: Comparing the size and strength of economies in the global market. It’s particularly relevant for evaluating countries' influence in global trade, investment, and financial markets.
- **Weakness**: It does not account for differences in cost of living across countries, which may distort the real value of economic output.

### GDP (PPP):
- **Definition**: Adjusts for differences in price levels between countries, essentially reflecting the purchasing power of each country's currency within its borders.
- **Best for**: Comparing living standards and the real value of economic output. It’s useful when you want to assess how much a given amount of income can buy in terms of goods and services within each country.
- **Weakness**: It may not accurately reflect a country’s ability to engage in international trade or its influence in global markets.

### Example of Use:
- If you're analyzing economic dominance, trade relationships, or global influence, **nominal GDP** is usually the preferred metric.
- If you're comparing living standards, economic productivity, or income distribution, **GDP (PPP)** is more appropriate.

[VBer]

2 hours ago, candide said:

### GDP (PPP)
- **Best for**: Comparing living standards and the real value of economic output. It’s useful when you want to assess how much a given amount of income can buy in terms of goods and services within each country.

So, ChatGPT says that Russia is number 4 of in  the World in terms of livings standards? 😀

I quite disagree with it.

if one country produces 1 ton of aluminium with the price of $500 and another country produces 1 ton of aluminium with the price of $1000 for me these are the same economies.

However if count by nominal GDP economy of second country will be measured as two times bigger.

 

 

[candide]

31 minutes ago, VBer said:

So, ChatGPT says that Russia is number 4 of in  the World in terms of livings standards? 😀

I quite disagree with it.

if one country produces 1 ton of aluminium with the price of $500 and another country produces 1 ton of aluminium with the price of $1000 for me these are the same economies.

However if count by nominal GDP economy of second country will be measured as two times bigger.

 

 

"So, ChatGPT says that Russia is number 4 of in  the World in terms of livings standards? 😀"

 

Where is it written in my post?

[VBer]

45 minutes ago, candide said:

Where is it written in my post?

“### GDP (PPP)
- **Best for**: Comparing living standards”

[candide]

36 minutes ago, VBer said:

“### GDP (PPP)
- **Best for**: Comparing living standards”

That's the summary made by chatGPT. With what do you disagree?

- If you're analyzing economic dominance, trade relationships, or global influence, **nominal GDP** is usually the preferred metric.
- If you're comparing living standards, economic productivity, or income distribution, **GDP (PPP)** is more appropriate.

[zmisha]

On 3/26/2025 at 5:50 AM, TedG said:

Here is a list of Western companies still doing business with Russia. 

 

https://leave-russia.org/staying-companies?flt[147][eq][]=9057

 

I don't know why the Western governments allow this to happen.

The entire industrialization of Russia in the Stalin era was made by American specialists. Sanctions were far more strict during those times. Seems like there are no walls that can stop business on its way to huge profits.

[VBer]

1 hour ago, candide said:

With what do you disagree?

I disagree that GDP by PPP represents living standards

Quality of life is affected by GDP by PPP per capita, not by GDP per PPP.

 

GDP by PPP represents the total strength of economy measured in goods sold and services provided. In this term Russia is #4 is the world, went up from #6 in last some years. 

 

[thaibeachlovers]

22 hours ago, stevenl said:

I was hoping you would explain so you might see yourself how nonsensical your argument?/post was. Unless you think that when posters see a doomed economy it will implode within a few months.

 

Didn't seem particulary insane to me. I've been on worse exercises than that.

 

As for the numptie showing a white light on his face at minute 15, what the **** was he thinking. Waste of time driving without lights if the passenger is lit up like a street lamp.

I wasn't making an argument, as I stated the fact that the thread started in November- are you going to say it wasn't?

 

As for Give it some time. on that basis so is America's economy with it's multi trillion $ debt.

 

Russia is doing just fine when some on here claim it's in imminent danger of collapsing

 

[thaibeachlovers]

20 hours ago, VBer said:

I not agree wiith it. The standard of living in a country relevant to GDP (ppp) per capita as in your link. In that term you are right, the standard of living in Russia is pretty low.

However GDP by PPP represents whole economy more precisely than nominal GDP

Wittering about GDP etc is a waste of time as it says nothing about "standard of living" as reality for real people. Just spending more does not make people better off. Bhutan is the only country in the world with a sane SOL index as it measure people's happiness, not their money in the bank.

 

I doubt there is any western country where a majority of the people are happy.

[VBer]

1 hour ago, thaibeachlovers said:

Just spending more does not make people better off

There are numerous studies proving than general happiness and life expectancy depend on personal income. That’s true, after certain level of income the dependency fades, in US its around 70k$ per year, in Russia I would say it’s 30k$ per year. But below  these amounts the relation is direct.

 

The general poorness in Russia is the reason why going to war is fully voluntary (unlike in the Ukraine, where men are being catched at street like a stray dogs).

For many people 10-20k$ payment on signing contract and 2.5-3.5k$ monthly is the only way out of poor life, that’s why Russia do not have problems with drafting new soldiers without general mobilization.