It's Monday Funday!

After four weeks in Russia, I have observed an aspect of this culture that I did not think I would witness - wealth dispersion and economic polarization seen in everyday life.

Now before I continue, I hardly consider myself a mathematically oriented person, let alone an economist. (Math 111 was the death of me.) However, I am a citizen of a first world country cast into the midst of a nation only 20 years removed from a Socialist system. When the Soviet Union fell, small companies and individuals snatched up previously government owned property- from factories to natural gas rights to oil fields. I’ll spare those who already are knowledgeable on the subject, and cut to the chase. This made a few people very, very rich and left the majority of the Russian population in the lower-middle class to lower class.

A country whose top 5% holds over 90% of the wealth is certainly not an uncommon idea, as most of the world outside of the U.S. lives in poverty. (You’ve seen the Red Cross commercials… yadah yadah yadah.)

 Consider this: Russia ranks third in the world in number of billionaires with 101- that’s 7.1 billionaires for every 10 million people- but ranks 53^rd in the world in GDP per capita!

            

This is evident in observing everyday life in a city like St. Petersburg. Along with Moscow, St. Petersburg holds almost all wealthy people in Russia, as much of the country is small rural towns with a considerably low income. Traveling just 30 minutes outside of the city was as far as I needed to go to see shanty like homes and farm animals galore.

0-60 In about 3 minutes

            

Unfortunately I did not have my camera on me at the time (some journalism major I am…) but yesterday I witnessed a perfect example of this on the street. At a stoplight near my house were 4 cars sitting at a red light. Two of these cars were Ferraris- the models I am not sure of, but I am confident one was a 458 Italia, while the other two were of a Russian brand- Lada.  I kid you not. I will leave you with a stunningly resembling photo of the condition and type of Ladas were in front of the Ferraris. -->

Just a couple of natural gas tycoons out for an evening drive, next to a farmer and his family in their most prized possession. This should paint a decent mental image for you.

Also- Happy birthday to Eddie Paskal. Love you buddy. Good luck to all my fellow ducks whom begin class today!