Subscriber Benefit
As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe Now
The outcomes of wars are notoriously tricky to predict. Prussian general and military theorist Carl von Clausewitz wrote two centuries ago: “In the whole range of human activities, war most closely resembles a game of cards.”
How does the Russo-Ukrainian conflict affect America and NATO? The good news is that Ukraine has not collapsed, the war has not expanded to other parts of Eastern Europe, nor have nuclear weapons been detonated. Unfortunately, hundreds of thousands of soldiers and civilians have died, millions of refugees have fled, and the region has suffered billions of dollars of property damage.
Last year, this column predicted that Western economic sanctions on Russia would not be effective in stopping the mayhem. Unfortunately, our prediction was correct. Russia is a large country that can substitute domestic production for many imported goods, and it has also increased its trade with China, India and Iran. The International Monetary Fund now estimates that the Russian domestic economy will grow in 2023 despite the continuing war and international sanctions.
Perhaps the most depressing aspect of the war is, there is no end in sight. Public opinion polls in Russia indicate that 75% of the Russian population supports the war. However, this data should be taken with a grain of salt. At a minimum, Putin seems in control of Russia.
The Ukrainian government insists that the pre-2014 borders be restored, that Russians be tried for war crimes, and that Russia be forced to pay reparations to Ukraine. One policy analyst suggests the odds of any Russian government, even without Putin, being willing to accept such conditions are essentially nil.
Although most experts don’t think Russia will resort to nuclear weapons, it is hard to see how the Ukrainian demands can be accomplished short of an actual invasion of Russia, which would surely increase the odds of Russia following up on its nuclear blackmail. Secretary of the National Security and Defense Council of Ukraine Oleksii Danilov’s brave and bold prediction that “our tanks will be on Red Square” is hardly reassuring.
Although the United States has a spotty record of supporting its allies, and domestic U.S. support for Ukraine may be waning, the U.S. aid to Ukraine accounts for less than 6% of our defense budget. With no U.S. troops in action, that is a price Americans might pay, depending on what cards turn up.•
__________
Bohanon and Horowitz are professors of economics at Ball State University. Send comments to ibjedit@ibj.com.
Please enable JavaScript to view this content.
