As many as 64% of Russians do not have any savings at all, and most of those who do have some will use them up in a maximum of six months, Invest Foresight reported earlier citing Levada Center.
However, economist and entrepreneur Dmitry Potapenko believes people will not even last six months with their savings because of rising prices and the shortfall of basic goods in the basket. This means they will have to buy goods at a higher price. Russians’ spending in grocery stores and medical centers will increase, if anything, although they will try to switch to a mobilization model of consumption, he said on his YouTube channel.
“The mobilization model of consumption means people will deny themselves even the simple necessary goods and services, in fact, only allowing themselves wartime rations,” Potapenko explained. “Most likely, we will have to do something we did before: everyone will work in their gardens; self-restraint will become easier, and it will be the only way to feed the family. They will have to sell property to pay their debts, and essentially transition to subsistence farming. This kind of feudal economy requires feudal solutions.”