In the Russian Federation, they decided to stimulate domestic demand: slogans do not affect the economy

21 June 2022, 11:00 | Economy
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Deputy Prime Minister of the Russian Federation Andrey Belousov recently named four measures that will be used to stimulate domestic demand (so that the population starts buying goods): investment stimulation, export expansion, support for the population and unblocking lending. And the chairman of the Central Bank, Elvira Nabiullina, said that it is necessary to rethink the role of exports and redirect production to the domestic market.. This is reported by Russian media.

But in order for domestic demand and consumption to grow, people must have: firstly, money and, secondly, confidence in the future.

At the same time, in the Russian Federation, the population has critically reduced consumption. Thus, the cost of new buildings " At the same time, developers have already begun to provide apartments for test drives to potential buyers in order to somehow stimulate the activity of the latter.. As it turned out, the majority prefer not to spend money even on food stocks, despite fears of future shortages.. This is evidenced by the results of a study by the NAFI center..

In the Russian Federation, they admit that in the near future the authorities will increase pensions and salaries of state employees in order to stimulate domestic demand. But this will not help the economy of the Russian Federation, we tell you why:.

First of all, wage growth will not affect business. The situation with wages in the export sector (oil, gas, coal, etc.). ) due to Western sanctions will go down. Wage cuts are also expected in the industry. These are metallurgy, chemistry, mechanical engineering, light industry. Of course, the situation is different everywhere, but the common thing is that the entire sector is radically dependent on imported equipment and technologies.. In addition, foreign investors are leaving Russia. Just the industrial sector will suffer more than others. The third sector is services (catering, hairdressing, etc.).. Here salaries will fall due to the fact that the population will not be ready for unnecessary spending.

We can say that " This is if the authorities decide to index salaries and pensions.

But even with state employees, not everything is simple.. They are not 100% secure.. Do not forget about the trend that has long been outlined - the reduction in the number of people employed in the public sector. For example, a teacher quits or retires, and they don’t take a new one in his place. At the same time, the salary goes in the form of additional payments to colleagues whose workload has increased..

By the third quarter, problems with rising unemployment and a shortage of jobs will become more pronounced.

Indeed, in those areas in which they are now trying to retain workers, there will be a decrease in wages for some time, but this cannot last long.. Using these methods, employment can be maintained for two or three quarters, but then employees will have to be laid off..

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Recall that the Russian Federation is the record holder for the adoption of sanctions against it.. Yesterday, Estonia from July 10 will ban the import of sanctioned goods from the Russian Federation.




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