Here’s the formulae for GDP. “Gross Domestic Product (GDP) includes consumer spending, government spending, net exports, and total investments. “
Consumer spending no longer includes people on a pension. They can barely afford food. Government spending during a war in this case is hardly good for the country as whatever they spent it on goes Boom! and doesn’t add to the real economy. Net exports are declining, and total investments include only stuff that is being built for the war effort, which is not good for the overall economy.
The health of the economy is not measured by GDP. It is measured by the number of starving people meaning those on a fixed income. (Roughly half the population.) They won’t drive the collapse. Not yet at least.
GDP of a country at war can’t be compared to the GDP of a country not at war. That would be an attempt to compare apples to pineapple grenades. Completely different animals.
Here’s the formulae for GDP. “Gross Domestic Product (GDP) includes consumer spending, government spending, net exports, and total investments. “
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That’s a sentence, not a formula.
GDP = C(onsumption) + G(ovt Spending) + I(nvestment) + (exports - imports)
Nothing wrong with the sentence, but there is always danger using english to describe numbers.
Now then . . . the ever popular word . . . collapse . . . and how things in history always do this or that.
The Federal Reserve started 1913. History started then as other countries went in that direction for their central banks.
When you have infinite money, as a central bank does, there is no such thing as collapse. Quantitative Ease is unstoppable. Think it guarantees inflation? QE went on and on and on from 2009 to 2020 and inflation? 0.
The Soviet’s Central Bank was constrained in the 1970s-80s to only create money aligned with the Interior Ministry’s 5 yr plan. When oil price fell and they needed money to be created, they could not do it. By law.
That law has been erased. Russia cannot collapse. They have infinite money.