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Interesting observation on Russia's regional economics during wartime: there's been some narrowing of the wage and income gap across regions lately. But here's the catch—nobody knows if this is actually sustainable.
The real issue? Resources are getting misallocated left and right. When you're diverting capital and labor toward war efforts, you're inevitably creating distortions in the broader economy. It's not organic market equilibrium; it's war-induced compression.
Looking at this through an economic lens: income convergence can look positive on paper—less inequality, right? But when it's driven by external shocks and inefficient resource reallocation rather than productivity gains, you're basically looking at a band-aid on a bigger wound.
The sustainability question is crucial. Once these temporary factors ease or shift, will regional disparities snap back? Or worse—will structural damage to less-developed regions make the reversal even steeper?
This kind of economic distortion is worth watching if you care about how crisis events reshape market structures and asset valuations in different sectors and geographies.