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Tuesday, November 26, 2019

LOW SALARIES IN RUSSIA

© MMXIX V.1.0.1
by Morley Evans

How are Russians able to live with such low salaries?


Mikhail Buleev, former Worker at Ilyushin (2006-2011)
Updated Nov 20

I will tell you a terrible secret: your "high salaries" actually provide you with about the same standard of living as the " low " Russian salaries.

My mortgage and utility bills cost me ~$370 a month.

My commute costs me ~$25 monthly. 

For access to the Internet at a speed of 100 megabits/sec, I pay ~$8 per month, another ~$8 per month is my tariff for cellular communication (600 minutes of calls and 10 Gigabytes of traffic are included).

My monthly salary is ~$1100. This is after taxes (by the way, in Russia, taxes on wages are paid by the employer, not the employee).

Medicine in Russia is free. You can go to a pay clinic, however (paid dental clinics are especially popular). But in General, every citizen of Russia by default has health insurance that covers all the costs of treatment.

On food and drinks I have moved away ~$450 in a month under this I not save. In fact, if you save, you can fit into the budget ~$250 per month for food.

Almost any shoes or clothes in Russia can be found in the price range up to $35 for each item of clothing. You wear it for one season, and then you just throw it away. So I usually buy clothes twice a year for about $700 in total. If you evenly distribute this amount-you get ~$60 per month.


So, 370+25+8+8+450+60=$921 - This amount includes my full security. If I save - then this amount is reduced to $721. Thus, I have from $179 to $379 monthly to distribute them for other needs: for example, I can send this money to my sister or my mother, who earn less than me and do not live in the capital region of Russia.

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Everything balances: Houses that are selling for a million dollars in one city will be about the same price as similar houses in that city. High wages and salaries will be offset by high costs. That is because people bid up prices with the money they have at their disposal. Vendors will charge as much as some people are willing to pay. If vendors charge more than people will pay, there will be no buyers and vendors will be forced to charge less. If vendors go bankrupt (they can no longer pay their bills), their successors who buy their assets at discounted prices will offer those assets for sale for lower prices.

Schemes to defeat the market have never worked. The Bolshevik experiment attempted to abolish private property and replace the market with bureaucracy. The Soviet economy collapsed in 1991. The economy of the Russian Federation today resembles the West in many ways. The People's Republic of China had stalled under Mao Zedong. Deng Xiaoping revived China from lessons he learned from Lee Kuan Yew in Singapore.  American fascism will fail too. The West needs to study Austrian economics.


Canada produced the Commonwealth Co-operative Federation (CCF) that parasitically wormed itself into Saskatchewan's politics and from there infected federal politics in Ottawa. The CCF had a neo-Marxist, Marxist-Leninist, philosophy disguised sufficiently to avoid being squashed.  The Party's greatest achievement has been universal medicare which is a giant welfare system for doctors and pharmaceutical companies. Medicare has become Canada's largest expense. Medicare is to Canada what the military-industrial complex is to the United States. The next big thing for the self-denominated socialists is "free" pharmaceutical prescriptions. Doctors will be able to go hog-wild when that gets through. Patients will die. Pshaw, patients already die from rampant malpractice. Canadians are dope-fiends encouraged from all sides by doctors and advertising. "Better living with dope," Canadians say!


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