Quick facts of Russia/United States
Population: 142.9 million/316.4 million
GDP: 2.6 trillion/ 16.8 trillion
GDP Growth: 1.3% /1.9%
GDP Per capita: $17.884/$53, 101
Unemployment: 5.8% / 7.5%
Inflation: 6.8% / 1.5%
Foreign Direct Investment: $79.3 Billion/ $187.5 Billion
7 Sources of Economic Progress
1. Russia has less property freedom than the US and Canada. This is because Putin is a fearless ruler and restricts the country to do what they want economic wise. He controls everything. What he says it goes. In the US and Canada, the countries' people have more freedom to do what they want with their property. They do not have to follow such strict rules like they do in Russia.
Freedom from Corruption
As seen, Russia's and the US has no dramatic change and has a steady pace. Cuba's increased but then went back down to a steady pace like the other two countries. The US though, has high freedom from corruption, which shows how free the country is. Ya Russia shows no change but they have little to no freedom from corruption. Cuba's-for being a communist country- freedom from corruption is higher than Russia's. This shows how restricted Russia is.
2. Competitive Markets
Russia's economy is still very dependent of the gas export business. It's average tariff rate is 5.0%. There is competition due to the fact that that they are very selective on who they trade with. So another country could get their gas from another country is Russia chooses to not trade with them. I's freedom to do anything is low.
3. Business Freedom
Russia's business freedom decreased in the late 90's and early 2000's but has increased back up to what it was in '95. Compared to US and Canada, it is low, but not a dramatic difference. Both other countries have more freedom than Russia. Russia is selective on who they trade with, which is why their freedom is low. They are not a free market and businesses have to show that they will benefit the country, not just the owner.
All three countries do not have chart for labor freedom early '90s. It starts showing in early 2000. Russia's labor freedom dropped in 2013 but rose up again the following year. This is because there was a lot of harsh punishments to those who did not complete their jobs, or trie to rebel against the working business. After that was all over, it peaked up again.
Russia's freedom was steady until early 2000. It went down because it dropped down to $5 billion, but went back up to $75 billion. It has been steady since then. US and Canada has been slowly going down the past decades. Russia's freedom is still low, but that is what happens with a Prime Minister like Putin.
4/7 An Efficient Capital Market
Russia trade freedom has always been low since Putin's rule. This is because of his very selective choice in whom he wants his country to trade with. This is why they have the ranking they have because they are not free economically. 2008 is where it dropped due to Putin's restrictions that year. Compared to US and Canada and most other countries, Russia's trade freedom is relatively low.
This graph gets pretty weird. Russia was at the same place as US for a year and then it peaked down to Canada's level fro a couple years. After, it dropped lower than both countries and is now currently the lowest out of the two. This is because where they started dropping, their freedom to trade started to get restricted more and more every year. This is because again, Putin chooses whom to trade with and who to invest in.
Russia' freedom was the same as US for about three years then it dropped. For all three countries they had years where the freedom was the same. Then, it went up, but not very much. The pattern for this freedom is steady for a while, then a slight drop, then at the same for another couple years.
5. Monetary stability
Russia has a low monetary freedom. It has gone down 63.9. According to the Regulatory efficient page, the government has subsidies for businesses. "Bureaucratic obstacles and inconsistent enforcement of regulations continue to suppress the private sector. " They also implement high taxes on petroleum to influence prices.
6. Low Tax rates
Russia has a higher spending than the US and Canada at the moment. Throughout the years it has always had a bigger government spending number than both countries. This shows how the government spends on programs for the people, or projects that will help the country gain a name for something. Its federal budget is what the country's fiscal year spending will be.
Fiscal freedom is the tax that the government puts on the people of its country. Russia has a higher fiscal freedom than US or Canada. This is probably because Russia has more government programs than the two countries. With more government programs, this means more taxes for the people, so that they can benefit from the programs.
Conversation: Analyzing Russia's Economic Crisis
In this video, the people talk about how Russia's economy could be going down. They talk about the whole problem with the Ukraine. They also talk about the main problem, which could be Putin. He has to see how the central bank will continue to function. He also has to make sure the economy does not face and more serious damage.