“We offer Russian soldiers a choice: to die in an unjust war,” Ukrainian Defense Minister Oleksii Reznikov said recently, “or full amnesty and 5 million rubles of compensation if they put down their guns and voluntarily surrender to prison.”
This idea employs capitalism as a weapon. With Russia turning to hired guns from Chechnya and Syria, it seems only fair to outbid the Russian military for the services of their ground troops.
Capitalism is, as Ludwig von Mises pointed out some 100 years ago, the only economic system that can produce wealth for the masses and is consistent with the political structure defined in our Constitution — that of individual liberty and limited government. It provides the resources required to defend our freedom, and it draws immigrants the world over to our borders. It is also a powerful tool we can use for mutual benefit with our friends and as a weapon against our foes.
The United States does not occupy the most territory in the world, nor does it have the largest population in the world. What our country does possess is the world’s largest economy, roughly 25% of the global economy. The U.S. economy is 10 times stronger than Russia’s, and we can use this to our advantage.
The great fear in Washington, one that Putin stokes at every opportunity, is that any action we take might trigger World War III or Putin’s use of nuclear weapons. Putin does not want U.S./NATO forces involved in the current conflict. And given the lackluster performance of the Russian military thus far, wants no part in a battle with a vastly superior foe.
So, what if we followed the example of the Ukrainian government and paid Russian soldiers to leave the Russian military? Reznikov offered Russian soldiers rubles. With the near-worthless ruble currently trading for less than a penny and Russian hyperinflation looming, the currency of choice for Reznikov’s offer is the far more stable U.S. dollar. And since defecting soldiers cannot return to Putin’s Russia, sweeten the offer with a work visa to EU/NATO countries.
Reznikov’s offer of 5 million rubles comes out to $46,000. At that price, the $10 billion aid bill Congress approved could remove thousands of soldiers from the Russian military. While there would be some security risks entailed with granting work visas to Russian soldiers, the benefits would likely far outweigh the risks.
Capitalism depends on individuals acting in a manner of enlightened self-interest. In a free society, if we find the government not to our liking, we can vote to change it. Reznikov offers the Russians forced to mount Putin’s invasion a chance to vote with their feet.
Regardless of how the war in Ukraine ends, Russia will remain a pariah state and an economic basket case for as long as Putin remains in charge. For the average Russian soldier, that means worthless pay and no opportunity for a better life. Given the choice between a future in Putin’s Russia or the capitalist West, what’s behind door No. 2 looks a lot more hopeful.
President Ronald Reagan ended the Cold War with the Soviet Union using unbridled capitalism. Biden could do the same in Ukraine for a fraction of the cost.
Gary Wolfram is the William Simon professor of economics at Hillsdale College and author of A Capitalist Manifesto.
