By John Q. Hosedrinker 
President Putin has downplayed concerns about Russia’s slowing economic growth, attributing it to a deliberate effort to curb inflation and maintain macroeconomic stability, despite expectations of a slowdown from 4.3% to around 1% GDP growth. This stance echoes similar comments from the Central Bank Governor, who denies the existence of a recession, although data suggests a technical recession based on quarterly GDP declines. However, this contradicts prior statements from Russia’s Economic Minister as well as reports suggesting the government is considering increasing the value-added tax to manage its budget deficit and preserve reserves, potentially conflicting with Putin’s previous tax assurances.
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Putin’s recent statements about deliberately curbing economic growth have a certain, shall we say, *characteristic* ring to them. It’s a classic move, really. When things aren’t going your way, you reframe the narrative. Instead of admitting to economic woes, you declare them a carefully calculated strategic maneuver. The slowing GDP? Oh, that’s intentional. It’s all part of the master plan to combat inflation. A plan, by the way, that might just involve some not-so-popular tax hikes, according to some whispers. It’s a bold claim, to say the least, and it brings to mind a certain… *unpleasant* scenario: the act of, well, you get the idea.
This whole “deliberate” slowdown strategy is interesting because, let’s be honest, it’s not exactly a winning hand to be dealt. It’s like saying, “I’m deliberately shooting myself in the foot to slow down.” It’s a classic case of “I meant to do that,” when in reality, you’re probably just trying to put a good spin on a bad situation. It’s a lot easier to sell your people a story than deal with the consequences of a falling economy. And, of course, the obvious question arises: what exactly is the end game here? Is it some complex chess move we are just not able to grasp, as many will argue, or is it just… well, what it looks like: a government scrambling to manage the fallout of its choices?
The real issue is this: it’s hard to see how deliberately shrinking the economy is a good thing, especially when you’re already dealing with inflation, a shrinking labor force, and a costly war. The ingredients for economic hardship are all there, and now you’re adding a dash of self-inflicted slowdown. It’s like deciding to live in a cave because you’re afraid of accidentally inventing killer robots. Sure, the fear is real, but maybe there are other options. This approach could also make it tough for people to get those essential goods and services they need, and it’s not like anyone has time for a nice weekend at the spa when the country is at war.
The echoes of this strategy are also apparent in the United States as well. There is a sense that, in a way, this is all part of a broader problem. It’s the idea of, let’s face it, deliberate “enshitification.” This is, sadly, a common move. When you’re in a tight spot, you try to manipulate the narrative, rewrite the script, and hope nobody notices the crumbling foundation. It’s an easy way to distract from the real problem.
And then there’s the war itself. The whole situation is a mess, and it’s not the kind of mess you’d want to be caught in. The war is burning through resources, damaging infrastructure, and creating a recession, which adds fuel to the inflationary fire. It’s all linked. One thing leads to another, and suddenly, you’re in a situation where you’re losing troops, resources, and the faith of your people. You are hurting your citizens on purpose, and openly saying it is a bold move.
You also have to consider the implications. The reality is that Russia is losing manpower and resources at an unsustainable rate. Sanctions, which are designed to slow a nation’s economy, are making it even harder to get essential components. Add to this the strikes on oil refineries. When you add all this to the mix, the pressures will certainly get worse. Russia seems to be facing a perfect storm. The economy is shrinking while inflation is rising. It’s not a recipe for a successful nation. The idea is: “everything is going as planned” is not a new meme.
It’s a complicated situation, with far-reaching consequences. The fact is, the Russian economy is hurting, and it’s not clear how much longer it can withstand the pressure. Putin’s claims of a deliberate slowdown may be an attempt to control the narrative, but the underlying issues are real, and they’re mounting up. Without a good plan, Russia will soon have to: borrow money at insane interest rates, print money, raise taxes, or cut other forms of spending. The price of oil is also not doing them any favors. The situation is getting worse, and it is only a matter of time before there is a significant pushback.