Russia’s collapse today is probable, not just possible.
Russia is already disappearing from the world economy.
In 1970, the U.S. accounted for the largest share of global GDP, making up nearly one-third of the world economy.
In 2020, the United States continued to hold onto the number one spot among the world’s largest economies. However, Japan’s slowdown created a rare opportunity for a new powerhouse to emerge: China.
Russia is no longer even in the top ten.
Japan and Germany swap places, with Japan rising to number 3. The UK rises to number 5, despite Brexit tussles. India shoots from 10th to 6th.
China’s economy saw incredible growth following economic reforms in 1978. The reforms encouraged the formation of private businesses, liberalized foreign trade and investment, relaxed state control over some prices, and invested in industrial production and the education of its workforce. With profit incentives introduced to private businesses, productivity increased. China was also positioned as a cheap manufacturing hub for multinational corporations. Since rising into contention, the country has become the world’s largest exporter.
India jumped to the title of the sixth largest economy in 2020. Similar to China, the country’s growth came from relaxed economic restrictions, and it has seen particularly strong growth within the service sector, including telecommunications, IT, and software.
Even the 1970 “Soviet” success was due to U.S. capitalist planners. Stalin hired American industrial experts, who created the Soviet economy. If it were not for oil today, Russia would not have an economy — it’s basically a gas station with some trinkets for sale on the side. Without oil and gas, Russia’s economy would be worth only $825-billion. One American company — Tesla — is valued at only slightly less than that, and it’s less than 20 years old.