The income of Russians fell by almost 5% in the third quarter.

2020-10-22

The third quarter of 2020 saw a tumble in Real Disposable Income of Russians by 4.8%. During the second quarter of this year, the drop in income went down to a record-breaking amounted to 8.4%. The 3% drop in revenues predicted for the year may be exceeded. Incomes fell way harder in 1999 when at the end of the year the decline was 12.3%.

“Income of Russians” cartoon graphic.

On the most popular government propaganda, is horror stories of the return of the ’90s, when as a result of capitalism market reform the population was plunged into extreme poverty. The propagators constantly link any attempts to change the governing system in the country with the worsening situation and falling living standards. However, we see that while maintaining the existing capitalist regime, the situation of the workers is still deteriorating. Population incomes have been falling since 2014. In addition, an increase in the retirement age was adopted in 2018.

The entire policy of the authorities leads to a constant deterioration in the situation of the working people, the unfolding coronavirus crisis has highlighted this in the best possible way. It cannot be otherwise under capitalism, because the entire well-being of the capitalists depends on the surplus-value appropriated by them. The more they make a profit, the less money the workers get. Capitalists also seek to reduce spending on social services, health care and education, either by reducing government spending and thereby dropping quality of existing services or by shifting it onto the shoulders of workers altogether.

This will continue as long as capitalism persists, the existence of which is contrary to the interests of the working people, which is the interest of the overwhelming majority of the population.

The ’90s did not go anywhere, they stayed. The crisis will repeat itself over and over again, ruining conditions of the working people and enriching the capitalists.