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Why does Russia seem so poor?
Their minimum wage is extremely low, their average salary is terribly low, the amount of homeless people is high (~3.5% of the population compared to Canada's 0.5). Don't they have a ton of resources?
- Bob BLv 77 years agoFavorite Answer
Russia does indeed have a ton of resources, but that doesn't mean the Russian people ever see any of it.
Income inequality there is very, very high. There are a few rich people who have more or less all of it, and most of the rest don't get nearly as much. It's more or less US Capitalism gone mad- the elite control more or less everything, and everyone else goes without.
This came about mainly because of the way the communist regime went, and what happened afterwards. Although the aim of communism in Russia was for everyone to be equal, that ultimately failed and the ruling communist party had most of the wealth for itself. When the regime fell, the government basically gave most of it away to a few people, who became amazingly rich as a result.
- lareLv 77 years ago
Poverty is relative, only 11% of the population in Russia are below poverty line as compared to 15% in America. Canada does not have a poverty line, but the comparable number would be 9% Living costs are higher in the USA so that household income requirements are higher. People in Russia can get by with a lot less income. Russia has a ton of resources but that produces income mostly as exports of raw material, ie metal ore, oil and natural gas. Its manufacturing base is not competitive in the world market (would you buy a Russia made car?), most of its employment is in the service sector of the economy. Russia also has a rather severe disparity in income distribution within the country. The top 10% earn 42% of the income, compared to 30% for the USA and 25% for Canada.
- Anonymous7 years ago
The poor have always been oppressed in russia. That's why they went communist. Little did they realize the oppressors were perfectly happy to take over the communist regime and go right on oppressing them. So they switched to capitalism, and whaddya think happened then? Yeah you guessed it.
- 7 years ago
Maybe because about twenty people have 98% of the wealth.A place we seem to be heading I am afraid.
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- JohnLv 77 years ago
- DLv 47 years ago
maybe cause they stable?