Caught up on all the posts!
A bit more about buying missiles and what that means in terms of wealth. This is at least something I think can explain with some authority.
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What happens if the Russian MoD is short on cash, at least in this year's planned spending - and can't offer the missile factory an 80% advance?
State banks step in. They can either provide a line of credit, help the factory in issuing bonds, or actually directly finance the project on a one off basis.
All of these things involve fat fees for the banks. They're willing to lend, also, because the Russian state steps in as guarantor. It means it's a risk free affair, really. Sometimes the military factories abuse this, and knowingly attract loans they know they won't be able to service. This is bad, but it happens.
The banks use these profits from interest income, underwriting, or transaction revenues to do what? That's right - they lend that money out again, or invest in something.
Now let's imagine the state military factory actually has 30% of its stock floated on the Moscow Exchange. When the gov orders a missile from them, their stock price increases. This increases the wealth of Russian investors, pensioners, etc.
When the profits from the missile sale are accrued, the factory may decide to issue some part of them as dividends. The majority, 70%, will go straight to the Russian treasury, but 30% will go to the public.
Anyway, that's just the banks and markets, which I failed to mention earlier.
I didn't mention how R&D work might produce $20 for each $1 invested, and how you never know if what the missile guys invented may be used in a totally different sector of the economy.
I didn't mention national security - without which any economy is useless, because somebody can come and take it away from you one day.