The economy can only survive if soldiers die...Russia's 'Desnomics'

[Anchor]
As the war with Ukraine drags on, Russia's wartime economy is overwhelming the private economy.There is even an analysis that

'The economy can only live when soldiers die'.

Reporter Kwon Young-hee reports.

[Reporter]
This is a video promoting recruitment in Russia.

I recommend you to end the lives of ordinary civilians and become a real man on the battlefield.

Advertising that monthly salary starts at 204,000 rubles, 2.8 million won in our money.

It's close to four times the average salary in Russia.

[Russian Recruitment Official: How about contracting with us and working in the military?]

The bereaved family of Russian soldiers who died on the battlefield will receive 14.5 million rubles and 200 million won in compensation, as well as military bonuses and military insurance.

It is more than the cumulative expected income that an adult man can earn when he works until the age of 60.

Famous Russian economist Vladislav Inozemtsev calls it "death economics" and "desnomics."

It was analyzed that if men under a certain age died in the war, the Russian economy would rather benefit.

This means that since the start of the war, the economy has morphed into a deformed form that relies on the military industry and the Defense Ministry's budget.

The death compensation paid by the Russian government until June amounted to 41 trillion won.

Thanks to military salaries and death compensation, Russia's poverty rate has fallen to its lowest level since 1995.

It is estimated that more than 600,000 Russian soldiers were killed in the war in Ukraine.

Even now, 30,000 new troops are recruited every month to replace the dead.

[Vladimir Russian recruit] There's a war and conscription is being made. Here, a great assistant gives you strong training.]

However, desnomics will likely wreck the Russian economy in the long run.

An artificially inflated income without productivity growth only stimulates prices.

In September this year, inflation in Russia was close to 10%, and potato prices, the most important food for the working class, soared 73%.

I'm YTN's Kwon Younghee.