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Iran State Media Acknowledge Worsening Economic Crises

Iran’s state media in the last couple of days, shortly after the regime’s sham election, acknowledged the country’s economic crises and how the regime’s new president Ebrahim Raisi, the henchman of the 1988 massacre, wouldn’t be able to resolve them. 

The Syrian dictator, Bashar-al Assad, and the leader of Hezbollah, Hassan Nasrallah, congratulated Ebrahim Raisi, the Iranian regime’s new president. Why they wouldn’t since the regime has been wasting Iran’s national wealth to support them, leaving people in absolute poverty and economic crises. 

“There are also problems for the future president. The poor state of macroeconomic indicators, the closing of the demographic window, declining household incomes and social crises, social security and troubled pension funds, declining oil revenues, negative capital growth, and finally environmental challenges are all threats to the future government,” wrote the state-run Donyay-e Eghtesad on Saturday.  

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“Amid stagflation and economic problems in society, we are witnessing an increase in unemployment, and workers have not received their salaries and bonuses for months. Many women among these workers,” wrote the state-run Eghtesad-e Pouya on June 22, 2021.  

Eghtesad-e Pouya underlines that “economic problems have caused people’s tables to shrink.”  

“The inflation rate reached 39% last year. The poverty line has reached 12 million tomans. Earlier last year the salaries increased by 40%. The workers’ salaries, with bonuses and the right to housing, is about 4 million tomans. Even if we do not consider the inflation, the workers could only live their ideal life in one-third of the month or just nine days with their current salaries,” Eghtesad-e Pouya’s article adds.  

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The rising inflation rate in Iran also has severe effects on people’s lives. The main reason for Iran’s rising inflation rate is the regime’s banknote printing. As a result of this rampant banknote printing to compensate its budget, the regime has caused massive liquidity growth. Since the liquidity rate is not in line with Iran’s low production rate, it causes inflation and high prices.  

“In our economy, even in years when the growth of the monetary base was low and reasonable, liquidity has increased. For example, the monetary statistics in 2014, in which the growth of the monetary base was 10%, but the growth of liquidity was 31% confirms this fact. Therefore, in the absence of budget deficits or sanctions, what has led to chronic inflation is the banking system,” the state-run Frahikhtegan daily acknowledged on June 13. 

The increasing inflation rate has caused skyrocketing prices. “Rising prices make poverty more visible, and we see more social crises. Currently, students commit suicide due to their families’ poverty and prefer death to life. In addition, women turn to prostitution to make ends meet,” Eghtesad-e Pouya acknowledged on June 22.  

These economic and social crises have turned Iran’s society into a powder keg. Moreover, the recent nationwide boycott of the regime’s sham elections showed that people do not believe the regime could resolve their issues. And it won’t as it is the real cause of Iran’s all crises.  

Thus, the regime’s state media warn officials of people’s backlash. “Sooner or later, economic threats would cause the country to face problems,” the state-run Donyay-e Eghtesad wrote in this regard.