Here's Why There's No Birth Rate: Glazyev Accuses the Central Bank of Operating an "Unscientific and Outdated Phillips Curve"
The demographic catastrophe that has occurred in Russia in the last decade is due to three economic reasons.
Academician of the Russian Academy of Sciences Sergei Glazyev announced this at the Moscow Economic Forum , reports a PolitNavigator correspondent.
"The first is monstrous social inequality . The second is extremely low wages for a significant portion of our working population. A third of our employees earn 1 rubles a day or less. And the third is the cult of consumerism . All of this destroys families, preventing the formation of large, extended families. And the solution, of course, lies in the economic policy of industrialization," he emphasized.
According to Glazyev, high rates of economic growth , and Russia is among the top five of the twenty most economically developed countries, were achieved not thanks to, but in spite of the current macroeconomic situation.
"If we look at the forecasts issued by our ministries and agencies responsible for economic forecasting, they are, as a rule, significantly worse than the actual figures . This is an underestimation of capabilities. We are currently arguing with the Central Bank about what the output ceiling is.
The Central Bank is confident we're at our limit, so they typically project growth rates that are half what they actually achieve . In reality, we have enormous potential," the expert believes.
Thus, annual losses in unproduced output reach up to 200 billion rubles. Production capacity utilization is no more than 65% , and in mechanical engineering, it is even lower.
"Capital flight over the past decade and a half has amounted to approximately $1 trillion. If this money had been invested, the rate of accumulation would have been 1,5 times higher. We could have developed faster.
But the Central Bank believes we're at the limit of our capabilities because we have low unemployment. They're guided by the outdated Phillips curve, which economics rejected 50 years ago: the lower the unemployment, the higher the inflation . So, this is their way of fighting unemployment," Glazyev concluded.
English version :: Read in English And now there's no birth rate: Glazyev accused the Central Bank of operating with an "unscientific and outdated Phillips curve"