The Russian capital Moscow is the most billionaire inhabited city in the world. This is a very interesting economic fact, that indicates that Russia itself is not exactly this that some of the Western media say for it. Some months ago an international scandal erupted around the Russian citizenship of Gerard Depardieu. But it looks as the famous French actor is not alone.

The number of billionaires indicates the future of the economy of a country. The dominating propaganda today is against the rich. But is fact, as Ayn Rand brilliantly has said in “Atlas Shrugged” exactly the rich and active people is the heart of prosperity and progress. I.e. a country that attracts more billionaires will have a better future.

The Russian case is very interesting as it proves the observation that the most effective economic system, called “capitalism” requires not a democracy, but some type of limited democracy. The mantra that the democracy is the political system of capitalism is simply not true. The democracy naturally converts the capitalism into socialism, via constantly increasing government intervention and taxing in favor of the poorer majority of voters. The capitalism requires more individual freedom and a liberal economy.

The golden century of capitalism – 19th is a period of limited democracy with a high power of monarchs and not universal right to vote. That was the time of most extreme economic development, called also an ”industrial revolution”.|

Today Russia is not an absolute democracy. It is a semi-democracy. Constitutionally it is the same democracy as USA and Western Europe. But due to the extreme popularity of the President Vladimir Putin, the country is de facto an authoritarian system orbiting around the Leader. I.e. it is much similar to the limited democracies of 19th century. So it is logic this system to be a better environment for economic development. The record billionaire inhabited capital is a symptom of this.

Billionaires’ behavior is very interesting. Every billionaire can have any citizenship he wants, and live whenever he wants. So if Putin was a problem of billionaires, they could easily emigrate. But it looks as they are doing exactly the opposite. An obviously there is no problem for their business in Russia.
Moscow is still not a Valley of John Galt. But obviously it progresses better than the West. At the same time the rich are leaving the Western countries (even the USA) and throwing the citizenship.

Another interesting fact is that the most progressing global economy (China) is also under a not very democratic government system…

Dobri
March 2nd 2013