Submitted by L. Todd Wood, a former special operations helicopter pilot and bond trader.
Underneath Their Autocratic Rulers, Russia and U.S. on Diverging Societal Paths
As the State of the Union address highlighted, both the Russia Federation and the United States have leaders that lean toward various degrees of autocratic government to achieve their agendas. President Putin rules with an iron fist and treats the legislative branch as an afterthought to use as needed but otherwise ignores. President Obama declares he will use executive action to get what he wants and quietly uses government agencies to intimidate and stifle his opposition in flagrant abuses of power. Putin has dismantled the Russian free press and imprisoned vocal opponents. The majority of the American press does Obama’s bidding for him while the administration puts movie makers in jail.
Underneath the tyrannical policies of the two Presidents, American and Russian society are diverging. First let’s look at welfare – it really doesn’t exist in Russia. If you’re a single mother raising your child alone, the state will pay you less than $50 a month. Unemployment insurance is also miniscule. The minimum wage is around $200 a month. I recently asked a Russian friend what they would receive if they lost their job. Her answer was, “It’s my problem, why should the government pay?” Health care is free but of very low quality. Russians with money typically choose private care and buy their own private health insurance.
In the United States, we are seeing an obscene explosion of the nanny-state. Obamacare has been exposed as a huge wealth redistribution scheme. The CBO states that the ACA is a disincentive to work. Disability payments are skyrocketing. The number of Americans receiving food stamps has doubled and is spiraling out of control. Welfare work requirements have been weakened. The left continuously pushes to add more immigrants to the government dole and refuses to enforce current immigration law.
The difference in the tax code between the two countries is also striking. If you live in New York, the combined government tax bite is above sixty percent. It is a safe bet that any Democratic state government will continue to try and raise taxes. Obama raised rates on the top earners in America and would boost them across the board if he could. In Russia, the individual tax rate is a flat thirteen percent. There is an eighteen percent VAT and the corporate rate is twenty-four percent. If Russia could remove her corrupt barriers to entry, her economy would explode higher.
The difference between the two nations when approaching geopolitical challenges cannot be more extreme. The United States has shown a willingness to abandon long standing allies time and time again on the global chessboard. Whether it be Israel, Poland, or Saudi Arabia, the Obama administration has shrank from global leadership and left a gigantic vacuum for President Putin to happily fill. Russia has shown a willingness to ignore Western political correctness and stand up for Russian long-term interests. One only has to look to the Iranian nuclear issue, the Syrian situation, or the Snowden embarrassment to see evidence of Putin schooling the American government. The American position seems to consist of avoiding conflict and appeasing adversaries rather than standing up for historical American values, our allies, and our way of life.
One of the most interesting differences that has been inconveniently obvious in the international press is the Russian refusal to embrace the religion of global warming. While the American government strives to shut down energy economic engines of power, Russia uses energy to achieve its national goals. Putin has been quoted as describing the climate change alarmist agenda as a marketing scheme. Putin has not bought into the madness of crowds to the benefit of Russia.
Perhaps the most curious cavern between the United States and Russia is their approach to religion. The church was effectively shut down during the Soviet experiment. However, in the last few decades, the Russian Orthodox Church has roared back to favor in Russian government opinion. President Putin has even felt emboldened enough to accuse the West of being morally decadent. The Democratic Party in the United States has largely morphed into an atheistic, anything goes, hedonist entity. One only has to look at the refusal of the Obama administration to enforce marijuana laws in America to find evidence of this fact.
I recently had a conversation with a young urban professional in Moscow. Their comment to me was that most young Russians were embarrassed of the communist revolution in Russia. “They killed our best people,” this person commented. I find it curious that the Rolling Stone recently published an article extolling the benefits of the teachings of Karl Marx and echoing the mindset of many of the current millennial generation in America. When the youth of American are yearning for communism, I fear America must relearn the very harsh lessons of the past. If Russia can ever deal with the specter of corruption, her society may leap to the future.