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> buying Russian gas cheaply the last 30 years This is what people miss. What is the opportunity cost of over-paying for gas for 30 years? By not over-paying
by dane-pgp 4y ago
> buying Russian gas cheaply the last 30 years
This is what people miss. What is the opportunity cost of over-paying for gas for 30 years? By not over-paying, Germany was able to invest in its own economy, and it is now in a position to help Ukraine and complete its transition to renewables.
Germany's strategy is currently unpopular because the costs all happen at once, whereas people generally put up with small costs spread over a long time, but it would have been foolish to harm German economic growth while Putin could just sell his gas somewhere else and grow the Russian economy at a faster rate than Germany's.
- kimixa 4y agoOne cost is that is directly funded the regime that is now invading a neighboring country, causing more burden on the current military budget as the populace demands support for them, and shoring up local defense budgets as it puts support to the fear that it may be needed at some point in the not-too-distant future. You can't really say what would have happened, but if nobody purchased that cheap gas, I think it's safe to say the Russia of today would look very different, with that being a rather large part of the country's total exports.