Putin Wants Big Business to Spend $120 Billion to Revive Economy

[TexasTowelie]

The Kremlin is leaning on Russia’s oligarchs to spend $120 billion on new investments by the end of Vladimir Putin’s term after shelving plans to hike taxes on big business.

That’s an increase of 15-20 percent and part of the Russian leader’s plan to take overall investment to a quarter of gross domestic product -- the highest level since the Soviet era. If the Kremlin succeeds, it could also leave less money for shareholders because the bulk of capital spending in companies is funded from profits.

But with the economy stuck in a rut as Western sanctions cut off foreign capital and technology, the Kremlin is running out of alternatives to jump start growth and meet Putin’s pledges to boost living standards.

“Compelling companies to invest in specific projects or confiscating sums are things of the same order,” said Natalia Orlova, chief economist at Alfa-Bank in Moscow. “For companies, this means the profitability of their business becomes less predictable.”

Read more: https://www.bloomberg.com/news/articles/2018-09-03/putin-wants-big-business-to-spend-120-billion-to-revive-economy

[gordianot]

1. Wonder if this includes Putin's pet orange American traitor?

Other than causing chaos with Russia’s enemies so far it does not appear there is much financial payback for Russia. Surely someone in Russia wants to play golf.

[Igel]

2. Compulsion and confiscation are similar.

Confiscation tends to be socialist; compulsion tends to be fascist. Same thing, in the end: Business and government are closely linked, with government calling the shots. Under fascism, it's been pointed out, that the owners of big companies were prominent and important, with the conclusion being that somehow business controlled government; on the other hand, is there any doubt that if they'd crossed Hitler they'd be dead? In other words, the difference was largely superficial--business danced to the government's tune.

[Farmer-Rick]

3. So, instead of taxing the Russian mob that rules over Russia, He's gently asking them to invest.

Compulsion my behind. They destroyed the economy.
They run the government. The Russian mob is merely making it look like they give a shit about the country and its people.

With the average Russian making less than $700 a month (with wages dropping routinely) plus a 20% tax, the burden of supporting the country has fallen on the poor and middle class. So a gentle reminder to those stealing their nation's wealth is in order.

So Putin's response to the country's continued decline into recession is to gently ask the wealth hoarders and criminals to "invest". The Russian mob want their cake and eat it too.

This is a country run by organized criminals, I doubt the US sanctions are what is causing the horrible Russian poverty and decline into destitution. Try paying your workers and distributing the country's wealth to everyone and NOT laundering it through the US and other criminal enterprises. How about recouping the millions you gave to Trump and the GOP.