Mobilisation, or Those Who Chose the Wrong Passport

NEW – September 23, 2022

Full de-offshorisation of the economy is needed

The spectre of mobilisation has been facing Russian society since the first days of the special military operation.

Military correspondents and simply those who were near the front say with one voice (or even outcry): you can’t win without it, because under the fanfare of the general’s reports, approximately everything is lacking.

Ordinary people remember the last time they saw a machine gun, they look at “Fursenko‘s children/victims of the Unified State Exam” [products of the modern, liberal Russian education system – SZ] who are unable (and unwilling) to do a pull up, and feel like traitors with horror, not seeing any strategic sense in mobilisation, or even a simple opportunity.

And the West is vigorously hammering social networks with horror stories for every taste, inflating fears and internal conflicts — with official reports forcing patriotic bloggers to quote the General Staff of the Ukrainian Armed Forces out of helplessness.

The problem of Russian society is that, according to an old intellectual habit, we discuss the concept without bothering to agree on its meaning.

No one disputes that mobilisation is a condition for Russia’s survival, but what kind of mobilisation?

After all, it is not the flooding of the special forces trained by the West with militias, but the normalisation of management (including combat operations) and the creation of a powerful economy that quickly and flexibly bakes everything like pancakes: from the killers of “HIMARS” to the killers of iPhones, from seventh-generation antibiotics to nanograph batteries, from soldier’s underpants to copters.

The discussion of general mobilisation simply distracts us from the really necessary mobilisation – managerial and technological. This will quickly turn Russia into an attractive symbol of progress for everyone and, in addition to strengthening our economic power, income and justice, will become a “soft power”: after all, not only are they not at war with ideals, they are not opposed.

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It is amazing, but our resources even now, after a bloody seven-month of “snot mastication” (to use the terms of the Supreme Commander-in-Chief) [in other words, procrastination – SZ], allow us to transform the country in a matter of months – already before the New Year.

First and foremost, honesty is needed: recognition that there is only one loyalty (and therefore dual citizenship is impossible), and corruption in power is treason to the Motherland (and therefore should be punished with life imprisonment, and only under fantastic mitigating circumstances and remorse — 20 years in prison). Honesty implies both a ban on the withdrawal of capital from Russia (since money works either for us or against us) and a restriction on cashing out (that is, transferring money from the legal sphere to the shadow) with an average monthly salary per person per day.

A complete de-offshorisation of the economy is necessary, since assets registered offshore – estimated to be more than 60% of Russia’s large private business – are under the potential control of our enemies and at any moment can go into the mode of destruction of our country or simply self-destruction.

For de-offshorisation, all assets registered in offshore companies should be transferred to state management, and if they are not re-registered in Russia within six months, they should be confiscated as ownerless property.

Honesty also implies a progressive scale of taxation of property, inheritance and income (up to two real subsistence minimums, the personal income tax rate should be zero, after the equivalent of $250,000 per year — 27%, between them — the current 13%). It is necessary, following the example of Switzerland, to create a mechanism for a tax on imputed income, calculated based on the fact that the cost of maintaining property cannot exceed a quarter of annual income.

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For technological progress, first of all, according to Pavel Durov’s long-standing dream, it is necessary to abolish the intellectual property of robber countries and aggressor countries.

For industrial development, it is necessary to drastically reduce costs, if necessary, by nationalisation: after all, the basic industries should not work for the yachts of oligarchs, but for reducing the scale of prices in the economy, primarily for processing. After all, an enterprise that works “for communal services”, for paying loans or for super-profits of oligarchs, is just as little capable of development as an ordinary person carrying the load of a mortgage.

Russia needs not a tax reform, but a managerial revolution, because the entire tax system is focused on encouraging financial speculation and suppressing the real sector in every possible way — and it needs to be deployed 180 degrees as soon as possible.

The rate of the most criminogenic tax (no matter how proud the digitalisers are of their truly indisputable successes) – VAT – should be reduced to the level of criminal costs of avoiding it: up to 10%. Among other things, this will reorient the energy of “shadow capital” to legal activity and in itself will become an important factor in the rise of business activity.

Industrial investments should be completely exempt from income tax, and small and medium-sized productive businesses should be exempt from all taxes for five years (in the North, in Transbaikalia and in the Far East — for 20 years).

First and foremost, the budget should be filled with excise taxes (increased to 27%) and duties on the export of raw materials, and not with systematic suppression of industry (the “tax manoeuvre” of 2018 made all refineries unprofitable, and last year the wild bureaucracy extended it to the ferrous metallurgy with the wording “we can’t disobey entrepreneurs”!)

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There cannot be an economy for a long time in which, as in the first half of 2022 in Russia, thanks to the full stimulation of the export of raw materials and the oligarchic business as a whole, profitability (according to official Rosstat data!) coal production is 73.8%, metal ores — 85.4%, other minerals — 49.9%, financial and insurance activities — 39.5%, real estate transactions — 31.3%, while the profitability of the production of machinery, equipment and computers — 10%, education — 4%, and science classes are unprofitable at all (the profitability is minus 3.1%).

Reasonable protectionism, which the whole country is already crying out for, is needed. The state should use duties to protect industry from excessive external competition, protecting its development without exposing the domestic market, and stimulate the import of raw materials and the export of finished products.

We must not forget the iron rule of economics: either goods or investments and technologies go to the country.

Only a speedy and merciless mobilisation of the economy will save Russia from really big blood, inevitable with the general mobilisation of people who do not know how and often are not ready to fight.

Who delays with “wait” and mumbles “we need to provide business as usual” clearly demonstrates that they are ready to pay for their profits with their blood.

And those who forcibly keep Russia in the WTO, which has long been dead and ignored even by the West itself, blowing off specks of dust from the assets of countries that stole $300 billion from us and are killing us — at best, they simply made a mistake with their passport.

Mikhail Delyagin

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