Things Have Changed

How to be More Efficient at Imposing Sanctions with Professor Seth Benzell

June 26, 2022 Season 14 Episode 2
Things Have Changed
How to be More Efficient at Imposing Sanctions with Professor Seth Benzell
Show Notes

32 years ago, Mcdonalds opened a restaurant in Moscow. Many people interpretted it as a soft integration to the west. In 1990, 30,000 people lined up for the opening at Pushkin Square, for many, it was the first taste of western consumerism. Since then, the Russian people have fallen in love with the Big Mac and the chain has grown all over the country. 

But today, the American fast-food giant has pulled out of Russia entirely. McDonalds closed over 800 stores in the country and ended up selling their productive resources to the Russians. The new owner replaced the symbolic golden arches with a new brand, "Vkusno & tochka", which translates to "Tasty & That's it".

But McDonalds isn’t the only one. So many other companies are leaving Russia! From the Auto industry (Ford, Toyota, Volkswagen AG), to the Finance industry (Goldman Sachs, Visa, American Express, and Paypal), companies are either suspending operations or limiting their services in the country of 146 million people - check out this article to see who's made drastic measures.

The sanctions of the west are definitely taking effect and the Russian economy is drastically changing… But are the changes what the west was aiming for?

Last episode, we talked about what Sanctions are and Professor Seth Benzells work around studying their effects. In this episode, we’re going to hear the professors thoughts about where policy makers might want to spend more time.

Tune in to learn about which Moscow factory, that used to employ 10,000 people, is being sold to the Russian government for $1 rouble..

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