Can long-austere Russia spend its way to a more dynamic economy?

For the past six years, Russia has used a strict policy of austerity to shield its economy from the double-whammy of low oil prices and punitive Western sanctions. But that’s about to change, as the Kremlin adopts a tried-and-true capitalist formula.

Russia has announced that it is increasing state spending by up to 10% this year, and more in coming years, to tackle social problems like poverty and low birth rates. It also hopes that putting more money into the hands of consumers will jump-start Russia’s stagnating economy.

Though some may call this a reversion to Soviet-style methods, it’s actually similar to Franklin Roosevelt’s New Deal in the U.S. Along with a massive infrastructure-building program that got underway last year, the new plan amounts to nearly half a

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