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Iran State Media Acknowledge Economy Is on Freefall

In recent days, Iran’s state media have acknowledged some aspects of Iran’s worsening economic crises. 

The Iranian people are under economic pressure due to the regime’s corruption and wrong policies, and this pressure exacerbates as the mullahs’ regime continues its illicit activities. 

“The time for becoming poorer in Iran has become shorter.  Data from the Statistics Center and the Central Bank show that the path to becoming poorer is paved. Instead of thinking about how to prosper, Iranians must think of a way to avoid absolute poverty,” wrote the state-run Kar-o Kargar daily on August 2. 

In Iran, mainly the people from the working class and pensioners can barely make ends meet. 

According to the regime’s Parliamentary Research Center’s engineered statistics, 53% of workers and 30% of retirees are poor. 

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“The report of the Parliamentary Research Center is real. A significant percentage of workers are trapped in poverty compared to last year, and the government, even if it wills, will not be able to return the situation to the last three or four years. The people’s economic situation is extremely bad, and the situation is worse than what the official statistics show,” Kar-o Kargar daily wrote on August 1, quoting Alireza Haidari, an expert of labor relations and social security. 

“Currently, our working class is under pressure, and the labor market for contract workers and construction workers is severely disadvantaged. Their problems have increased due to the Covid-19 outbreak,” Kar-o Kargar wrote.  

“Workers have two major challenges, one of which is job security and the other is their livelihood. In the field of job security, temporary contracts have been unjustly and wrongly popularized in the labor law, and the result is that now more than 90% of our workers have temporary contracts,” Kar-o Kargar wrote on August 1.  

Iranians, mainly workers, are mainly under pressure due to the skyrocketing prices and the inflation rate. According to the engineered statistics by the state-run Jahan-e Sanat daily on August 1, the inflation rate is around 45%.  

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According to Jahan-e Sanat, the main reason for Iran’s rampant inflation rate is “Deep structural problems including huge government budget deficits.”  

To cover its budget deficit, Hassan Rouhani’s government started unbridled banknote printing, increasing the liquidity, which is now around 3.4 quadrillion tomans, thus increasing the inflation rate.  

This is in addition to the regime’s institutionalized corruption and the role of the regime’s military institutions, such as the Revolutionary Guards (IRGC).  

“According to a recent report by the former central bank governor, the government has used more of the central bank’s resources to solve problems and cover its expenses. This has increased the monetary base and resulted in an inflation rate above 40%, which is expected to continue. Military, security and economic institutions outside the control of the government continue their economic or political activities, and this also [impacts the economic situation],” wrote the state-run Setar-e Sobh daily on August 2.  

“If Iran’s economy follows the same path, we would have the same economy as Venezuela. The Venezuelan economy is completely bankrupt. We will follow the same path as Venezuela, and the devaluation of the national currency, inflation, unemployment, etc., will be greater than now. Inflation will increase in the same way. If it is 40% now, it will probably reach 55% by the end of the year. The figure of 55 or 60 percent is too high for inflation,” Setar-e Sobh warned.  

These figures only show some aspects of Iran’s economy and how the mullahs’ regime has destroyed it. The only way to reverse the situation and end these crises is to eradicate the root of these problems, which is the mullahs’ regime.