Russia, Ruble, and Recession: 3 Economic Myths Starting with R Fundraiser - Econ Lessons

[TexasTowelie]

Hi, my name is Mark. I’m an economist, and in this video, I challenge the idea that the Russian economy is going into a recession and the ruble is appreciating by applying core principles from Austrian economics.

Contrary to official headlines claiming ruble “strength” against the U.S. dollar, the ruble is actually on a clear downward trajectory when measured against a commodity benchmark like gold—a more objective and historically grounded store of value. This collapse in commodity terms reveals the ruble's declining purchasing power and undermines domestic propaganda that claims the currency is "stable" or "rising."

Second, the media and some analysts continue to use the term recession to describe Russia’s current economic state. But recession is a concept rooted in capital-based free-market economies with business cycles. Russia, by contrast, is functioning as a centrally planned economy in disguise—fueled by coercive policy, political repression, and capital controls. Calling it a "recession" is misleading and legitimizes a system that lacks the spontaneous order and entrepreneurial discovery inherent to free markets.

I employ Austrian concepts as well as ideas from classical economics and Wicksell, such as the marginal productivity of capital, intertemporal misallocation, and price distortion through monetary intervention, to argue that Russia’s current trajectory is not cyclical but systemic—a descent into economic obsolescence, masked by short-term energy revenues and authoritarian control.