The Sanctions Delusion

[neverfail]

In a country like Russia where a good deal of the economy is state controlled, it is possible to have a decrease in GDP without a significant increase in unemployment. All you need is for the state to create jobs in the non-productive sector.

With whose money to fund the cost?

Are you unaware that a national economy shrinking in size automatically means a corresponding shrinkage in the tax take?

[Sertorio]

In a country like Russia where a good deal of the economy is state controlled, it is possible to have a decrease in GDP without a significant increase in unemployment. All you need is for the state to create jobs in the non-productive sector.

With whose money to fund the cost?

Are you unaware that a national economy shrinking in size automatically means a corresponding shrinkage in the tax take?

State revenues in Russia are increasing, with the increase in oil and gas prices. It would be easy to temporarily provide jobs to people being affected by the sanctions.

[Sertorio]

As has been explained to you at least twice already, if an approach is the most efficient, then it's the first choice, not a substitute.

There is absolutely no reason why the Russian buyer of a foreign business cannot be as efficient as the previous owner. Economics is a science, not voodoo...

It's not actually about the nationality of the seller or buyer. But there's not enough spare time in the world to waste it in futile attempts to explain economics to unreconstructed Marxists.

You don't know much about economics. You just let yourself be carried away by a faulty ideology. You will never be able to explain why Russian takers of foreign businesses in Russia could not run them efficiently. It's just poorly digested Economics 101 from a capitalist school...

[Sertorio]

McDonald's to sell Russian business to current licensee Alexander Govor
https://tass.com/economy/1453295

MOSCOW, May 19. /TASS/. McDonald's announced that it will sell its Russian business to current licensee Alexander Govor. This is according to a press release published on the portal PR Newswire on Thursday.

"McDonald's Corporation announced today that it has entered into a sale and purchase agreement with its existing licensee Alexander Govor. Under this agreement, Mr. Govor will acquire McDonald's entire restaurant portfolio and operate the restaurants under a new brand," the press release says.

The company’s press service stressed that Govor has served as a McDonald's licensee since 2015 and has operated 25 restaurants in Siberia.

According to the press release, "the agreement remains subject to certain conditions, including regulatory approval, with closing expected to occur in the coming weeks."

"The sale and purchase agreement provides for employees to be retained for at least two years, on equivalent terms. The buyer has also agreed to fund the salaries of corporate employees who work in 45 regions of the country until closing, as well as fund existing liabilities to suppliers, landlords and utilities," the press release says.

Earlier, McDonald's announced that it was to leave the Russian market and was going to sell its business in the country. The company made it clear that planned to sell the business to a "local buyer" who will not be able to use the previous name, logo and menu. In turn, a source at McDonald's told TASS that the chain's restaurants will continue to operate in the Russian Federation under a new brand in mid-June, while jobs, most suppliers and menus will remain, "in fact, only the name will go away."

Steve, as you see the change of ownership in respect of McDonald's will have no impact on employment. As was to be expected. And the same will occur with most foreign companies taken over by Russian firms.

[cassowary]

McDonald's to sell Russian business to current licensee Alexander Govor
https://tass.com/economy/1453295

MOSCOW, May 19. /TASS/. McDonald's announced that it will sell its Russian business to current licensee Alexander Govor. This is according to a press release published on the portal PR Newswire on Thursday.

"McDonald's Corporation announced today that it has entered into a sale and purchase agreement with its existing licensee Alexander Govor. Under this agreement, Mr. Govor will acquire McDonald's entire restaurant portfolio and operate the restaurants under a new brand," the press release says.

The company’s press service stressed that Govor has served as a McDonald's licensee since 2015 and has operated 25 restaurants in Siberia.

According to the press release, "the agreement remains subject to certain conditions, including regulatory approval, with closing expected to occur in the coming weeks."

"The sale and purchase agreement provides for employees to be retained for at least two years, on equivalent terms. The buyer has also agreed to fund the salaries of corporate employees who work in 45 regions of the country until closing, as well as fund existing liabilities to suppliers, landlords and utilities," the press release says.

Earlier, McDonald's announced that it was to leave the Russian market and was going to sell its business in the country. The company made it clear that planned to sell the business to a "local buyer" who will not be able to use the previous name, logo and menu. In turn, a source at McDonald's told TASS that the chain's restaurants will continue to operate in the Russian Federation under a new brand in mid-June, while jobs, most suppliers and menus will remain, "in fact, only the name will go away."

Steve, as you see the change of ownership in respect of McDonald's will have no impact on employment. As was to be expected. And the same will occur with most foreign companies taken over by Russian firms.

It depends. Govor is taking over and selling hamburgers under a new brand. Let’s call it McPutin. So if sales are maintained then unemployment remains the same. But if revenue falls, they may have to retrench staff. Of course, if McPutin sells like hot cakes, then employment goes up.

[Sertorio]

McDonald's to sell Russian business to current licensee Alexander Govor
https://tass.com/economy/1453295

MOSCOW, May 19. /TASS/. McDonald's announced that it will sell its Russian business to current licensee Alexander Govor. This is according to a press release published on the portal PR Newswire on Thursday.

"McDonald's Corporation announced today that it has entered into a sale and purchase agreement with its existing licensee Alexander Govor. Under this agreement, Mr. Govor will acquire McDonald's entire restaurant portfolio and operate the restaurants under a new brand," the press release says.

The company’s press service stressed that Govor has served as a McDonald's licensee since 2015 and has operated 25 restaurants in Siberia.

According to the press release, "the agreement remains subject to certain conditions, including regulatory approval, with closing expected to occur in the coming weeks."

"The sale and purchase agreement provides for employees to be retained for at least two years, on equivalent terms. The buyer has also agreed to fund the salaries of corporate employees who work in 45 regions of the country until closing, as well as fund existing liabilities to suppliers, landlords and utilities," the press release says.

Earlier, McDonald's announced that it was to leave the Russian market and was going to sell its business in the country. The company made it clear that planned to sell the business to a "local buyer" who will not be able to use the previous name, logo and menu. In turn, a source at McDonald's told TASS that the chain's restaurants will continue to operate in the Russian Federation under a new brand in mid-June, while jobs, most suppliers and menus will remain, "in fact, only the name will go away."

Steve, as you see the change of ownership in respect of McDonald's will have no impact on employment. As was to be expected. And the same will occur with most foreign companies taken over by Russian firms.

It depends. Govor is taking over and selling hamburgers under a new brand. Let’s call it McPutin. So if sales are maintained then unemployment remains the same. But if revenue falls, they may have to retrench staff. Of course, if McPutin sells like hot cakes, then employment goes up.

I agree with you. I have been commenting on some of Steve's statements which gave the impression that he felt ideology commanded economics and economic performance. It doesn't. Common sense, skill and investment determines what happens with any firm. Not some voodoo mumbo-jumbo...

[SteveFoerster]

I have been commenting on some of Steve's statements which gave the impression that he felt ideology commanded economics and economic performance. It doesn't. Common sense, skill and investment determines what happens with any firm. Not some voodoo mumbo-jumbo...

And yet you deflected to a nationalist argument because you couldn't address the very basic point I made to you.

[Sertorio]

I have been commenting on some of Steve's statements which gave the impression that he felt ideology commanded economics and economic performance. It doesn't. Common sense, skill and investment determines what happens with any firm. Not some voodoo mumbo-jumbo...

And yet you deflected to a nationalist argument because you couldn't address the very basic point I made to you.

Your "deep thought point" was:

...you do not understand the economics behind why substitutes are definitionally less efficient than what they replace...

This is meaningless and is no more than voodoo mumbo-jumbo economics...

Now tell us why Russians taking over foreign businesses cannot run them as efficiently as the former owners...

[SteveFoerster]

I have been commenting on some of Steve's statements which gave the impression that he felt ideology commanded economics and economic performance. It doesn't. Common sense, skill and investment determines what happens with any firm. Not some voodoo mumbo-jumbo...

And yet you deflected to a nationalist argument because you couldn't address the very basic point I made to you.

Your "deep thought point" was:

...you do not understand the economics behind why substitutes are definitionally less efficient than what they replace...

This is meaningless and is no more than voodoo mumbo-jumbo economics...

Now tell us why Russians taking over foreign businesses cannot run them as efficiently as the former owners...

Well that didn't take long -- you are, yet again, deflecting to a nationalist argument because you can't address the very basic point I made to you.

It's not about whether they are Russian. In fact, the point is just as valid in the opposite case, if sanctions force Russians to liquidate their businesses in the West that too is less efficient.

[Sertorio]

I have been commenting on some of Steve's statements which gave the impression that he felt ideology commanded economics and economic performance. It doesn't. Common sense, skill and investment determines what happens with any firm. Not some voodoo mumbo-jumbo...

And yet you deflected to a nationalist argument because you couldn't address the very basic point I made to you.

Your "deep thought point" was:

...you do not understand the economics behind why substitutes are definitionally less efficient than what they replace...

This is meaningless and is no more than voodoo mumbo-jumbo economics...

Now tell us why Russians taking over foreign businesses cannot run them as efficiently as the former owners...

Well that didn't take long -- you are, yet again, deflecting to a nationalist argument because you can't address the very basic point I made to you.

It's not about whether they are Russian. In fact, the point is just as valid in the opposite case, if sanctions force Russians to liquidate their businesses in the West that too is less efficient.

Less efficient than what?...