Good Or Evil Doesn't Win Wars. Only Economics Wins Wars. In 110 Seconds

Episode 53, Dec 12, 2023, 03:22 AM

Headliner

Welcome to the latest episode of Burgernomics! Today, we delve into the harsh reality that economics, not notions of good or evil, often dictates the outcome of wars.
Recent developments, including Vladimir Putin allocating a staggering one-third of Russia's economic output to defense, highlight the economic dimension of modern warfare.

Key Points:

Russia's Economic Commitment:
- Putin directs 33% of Russia's economic output to defense, amounting to $820 billion annually, 15 times more than Australia's projected defense expenditure.
- The move underscores the role of economic decisions in shaping military capabilities and strategies.
Volunteer Soldiers and Economic Incentives:
- Russian volunteer soldiers enticed by substantial pay, earning four times the average monthly salary, will contribute to the military force.
- Families of soldiers receive significant compensation if killed, creating a unique economic dynamic in the armed forces.
Labor Shortages and Economic Impact:
- The influx of men into the army leads to severe labor shortages across Russia, affecting not only the military but also the broader economy.
- Even penal colonies are tapped for labor, illustrating the extent of the workforce mobilization.
Economic Adaptability:
- Russia's ability to redirect civilian production instantly for wartime needs contrasts with the challenge faced by market-based economies like Australia, which require years to shift supply chains to defense production.
Chinese Naval Power:
- A sobering thought from The Wall Street Journal: One Chinese nuclear submarine and civilian shipyard launch more ships annually than the entire U.S. in the last 30 years, emphasizing the global economic and military landscape.

Conclusion:

Economic decisions play a pivotal role in determining military success.
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