this post was submitted on 17 May 2025
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I think the key to understanding the context is that GDP is a flow, not any kind of accumulation.
If Person A earns $100,000 this year, gets a 4% raise every year, will they be richer or poorer than Person B who earns $120,000 and gets a 5% raise every year, after 10 years? We have no idea, because we don't know from the question what their starting wealth was, how much they save or spend, whether the stuff they buy retains its value or appreciates or depreciates, etc.
So Russia can have growing GDP, but can still be running its economy into the ground if the stuff they're producing is getting destroyed, or has no lasting value.