Russians to Have “Extremely Difficult Future,” Says Economist

Russians to Have “Extremely Difficult Future,” Says Economist


According to Mikhail Khazin, a well-known Russian economist, publicist, and public figure, the current liberal model of development and economic management in Russia supported by powerful ruling groups, is leading the country to a decline and economic collapse.

Moreover, Khazin believes that Vladimir Putin is well aware of the situation and would not mind a 180-degree turn in the direction of conservative development of the country. However, to Khazin’s thinking, he is prevented from doing so by the very same "liberals" entrenched in Russian power and conducting subversive work against the state and its people.

In Khazin’s opinion, all the countries that are currently using only liberal model should be ready for “an extremely difficult future.” According to him, this also applies to Russia. The fact is, he said, that this approach makes consumption the key driving force in the economy, which is fundamentally wrong.

As a rule, Khazin said, it is the middle class that consumes the most. At the same time, under the conditions of the growing and worsening crisis, the middle class began to rapidly run out of savings and means of subsistence. As a result, many people have to reduce the volume of consumption significantly. Accordingly, they have lost the ability to purchase services and goods as previously. Therefore, the economic system based on this model starts collapsing almost as soon as this part of civil society becomes poorer, he added.

As an example, Khazin cites the United States. Precisely due to the problem he mentioned, the Federal Reserve System is unable to stop the “money printing press” for many years.

“If they do not stop regularly saturating the economy with flat money that was created virtually out of nothing, then the entire economy might collapse immediately. In this case, people will no longer be able to transfer their money to businesses that will then be deprived of the ability to pay taxes.” Khazin believes that a similar scenario has recently been unfolding in Russia albeit with some national peculiarities.

In this regard, Khazin predicts that all countries, together with Russia, where the liberal model continues to exist as the basis of the state, should be ready for a sharp decline in living standards in the near future. To his thinking, people in the countries that did not reject this liberal model might get to face with an outcome of this kind. In Khazin’s opinion, the Russians are no exception either.

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