A report from the OECD:
The global economy has been hit by Russia’s invasion of Ukraine. Global economic growth stalled in the second quarter of 2022, and indicators in many economies now point to an extended period of subdued growth.
The war has pushed up energy and food prices substantially, aggravating inflationary pressures at a time when the cost of living was already rising rapidly around the world.
Global growth is projected to slow from 3% in 2022 to 2¼ per cent in 2023, well below the pace foreseen prior to the war. In 2023, real global incomes could be around USD 2.8 trillion lower than expected a year ago.
Meanwhile the NY Times is running a story on the effort to supply Ukraine with the 3,000 artillery shells a day its army routinely fires. (Which is a lot less than they would like to be firing.) This has involved searching out abandoned production lines in old Warsaw Pact countries like Bulgaria and Montenegro and paying millions to get them restarted. Which is great for a few hundred workers in Bulgaria and Montenegro, but very expensive for the rest of us; each shell costs $2,000 to $3,000. The laser-guided rounds (like the American Excalibur) that have proved so effective cost up to $150,000 each. A Javelin anti-tank missile costs around $200,000. One GMLRS missile for Himars costs around $168,000.
I think this war is worth it, but we shouldn't kid ourselves about the cost, which is depressing the economy of the whole world.
3 comments:
High tech wars are too expensive. You fight for 6 months, go broke, can't keep up with the demand, and then you are reduced to trench warfare with pistols. So much for fighting a two front war. Oh, and don't forget the rowboats. I have a feeling all aircraft carriers are big fat targets impossible to miss.
But don't worry, those crushing sanctions the west placed on Russia are soon to bring Russia crashing down, any year now. They probably are working, but not the way the "EXPERTS" promised. They seldom do. I wonder what the world would look like if Russia actually had a competent military.
I have no idea how much 3,000 artillery rounds a day are, but it sounds like a lot.
And how many soldiers does Ukraine have left?
Try thinking of it as a demand-side stimulus.
There you go.
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