{"id":240893,"date":"2021-06-04T07:51:45","date_gmt":"2021-06-04T12:51:45","guid":{"rendered":"https:\/\/www.ncr-iran.org\/en\/?p=240893"},"modified":"2023-01-30T04:30:24","modified_gmt":"2023-01-30T03:30:24","slug":"irans-economic-crises-and-how-it-affects-society","status":"publish","type":"post","link":"https:\/\/www.ncr-iran.org\/en\/news\/economy\/irans-economic-crises-and-how-it-affects-society\/","title":{"rendered":"Iran\u2019s Economic Crises and How It Affects Society"},"content":{"rendered":"

\"In<\/p>\n

In recent days, Iran\u2019s state-run media have acknowledged some aspects of the country\u2019s economic crises and how it affects people. While the regime and its apologists try to blame sanctions for Iran\u2019s economic crises, facts by state media show how the regime\u2019s institutionalized corruption\u00a0has\u00a0destroyed Iran\u2019s economy.<\/span>\u00a0<\/span><\/p>\n

\u201cWhile Mr. President spoke of not experiencing triple-digit inflation rate as his government\u2019s achievement, statistics show that besides exceeding the inflation rate forecasted by the International Monetary Fund, his government holds the record for the second annual inflation rate in the history of the Islamic Republic,\u201d wrote the state-run Keyhan daily on Thursday.<\/span>\u00a0<\/span><\/p>\n

Keyhan added, \u201cSome food items have experienced triple-digit inflation,\u201d rejecting bogus claims of the regime\u2019s President Hassan Rouhani on Wednesday about Iran\u2019s economic growth.<\/span>\u00a0<\/span><\/p>\n

To compensate for its budget deficit, Rouhani\u2019s government started an unbridled banknote printing. Thus, Iran\u2019s liquidity rate rapidly increased, and since it was not equal to the country\u2019s economic growth production and export rate, it created inflation, affecting<\/a> people purchasing power.<\/span>\u00a0<\/span><\/p>\n

\u201cThe average economic growth from 2013 to 2021 is reportedly zero percent. Yet, the liquidity volume in the same period has increased from 3 quadrillion tomans to 3.5\u00a0quadrillions,\u201d wrote the state-run Javan daily on Thursday.\u202f<\/span>\u00a0<\/span><\/p>\n

\u201cThe creation of unsupported liquidity in these years to cover the government budget deficit, as well as the payment of unrealized bank interest on bank deposits, is the root of this issue. The effects of this liquidity growth are the continuous increase of prices of goods and services in the Iranian economy,\u201d Javan daily adds.\u202f<\/span>\u00a0<\/span><\/p>\n

Three quadrillion tomans are equal to $126 billion,<\/a> with the current exchange rate at Iran\u2019s free market.\u202f<\/span>\u00a0<\/span><\/p>\n

While prices are skyrocketing in Iran, according to state-run Jahan-e Sanat daily on Thursday, \u201cThe report on the country\u2019s poverty and inequality in the last two decades shows that the population below the absolute poverty line had reached 15% from 2013 to 2016 but increased to 30% from 2016 to 2019.\u201d\u202f<\/span>\u00a0<\/span><\/p>\n

Effects of Iran\u2019s crises on people and regime\u2019s role\u202f<\/span><\/b>\u00a0<\/span><\/h2>\n

\u201cEconomic crises are a sign of economic inefficiencies in the country because the authorities must seek to meet the basic needs of every human being, such as food and clothing.\u00a0But,\u00a0we are currently witnessing constant skyrocketing prices in the country,\u201d wrote the state-run Donya-e Eghtesad daily on June 1.\u202f<\/span>\u00a0<\/span><\/p>\n

\u201cThe price of people\u2019s basic goods is different every hour. This shows the weakness of management in the country, and from now on, people will be dissatisfied mentally and psychologically,\u201d Donya-e\u00a0Eghtesad\u2019s\u00a0article adds.\u202f<\/span>\u00a0<\/span><\/p>\n

In another article on Thursday, Donya-e Eghtesad acknowledged the plight of Iranian workers amid Iran\u2019s economic crises and the Covid-pandemic.\u202f<\/span>\u00a0<\/span><\/p>\n

\u201cThe dramatic increase in the price of housing, gold, and food items including meat, poultry, rice, oil indicates the plight of workers. All officials should look for a way to help workers, but they have so far destroyed the workers\u2019 life by causing skyrocketing prices,\u201d Donya-e Eghtesad writes.\u202f<\/span>\u00a0<\/span><\/p>\n

\u201cAccording to the latest statistics published, people\u2019s purchasing power has decreased by 80%, which is a sign of the deterioration of the Iranian economy. Some experts believe that the increase in workers\u2019 wages last year significantly impacts workers\u2019 livelihoods. But this increase has not\u00a0been visible because the prices of items in our country have increased more than workers\u2019 wages,\u201d Donya-e\u00a0Eghtesad\u2019s\u00a0article adds.\u202f<\/span>\u00a0<\/span><\/p>\n

While Donya-e Eghtesad acknowledged in its articles that regime officials are directly involved in increasing Iran\u2019s economic crises. Still, it deliberately refused to shed light on the regime\u2019s institutionalized corruption.\u202f<\/span>\u00a0<\/span><\/p>\n

Yet,\u00a0Hamdeli\u00a0daily quoted Mohammad Reza Ansari, Vice President of Iran Chamber of Commerce, on Thursday, acknowledging how the regime officials\u2019 corruption has damaged Iran\u2019s economy.\u202f<\/span>\u00a0<\/span><\/p>\n

\u201cWhile underlining that corruption has locked Iran\u2019s economy, Ansari said: the corruption has diverted the economy. \u2018When economic decisions about macroeconomics are made based on individual and group interests, the economy becomes confused, there is no economic plan, leaving experts baffled,\u2019 he added,\u201d wrote the state-run\u00a0Hamdeli\u00a0daily.\u202f<\/span>\u00a0<\/span><\/p>\n

Consequences of Iran\u2019s economic crises for regime\u202f<\/span>\u00a0<\/span><\/h2>\n

People from all walks of life hold daily protests in Iran due to their harsh living conditions. They target the regime and its warmongering policies and corruption, underlining that people only consider the mullahs\u2019 regime as Iran\u2019s problem.\u202f<\/span>\u00a0<\/span><\/p>\n

The ongoing economic crises will increase society\u2019s restiveness, and this casts a shadow of fear among regime officials and state media, warning about people\u2019s \u201cviolence.\u201d<\/span>\u00a0<\/span><\/p>\n

\u201cThe economic crises have made people violent. This government may stay in power until July, but the effects of this violence last for years. Officials should answer people\u2019s demands so they could live in comfort. If not, there will be social harms,\u201d Donya-e Eghtesad warned regime officials on Thursday.\u202f<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

In recent days, Iran’s state-run media have acknowledged some aspects of the country’s economic crises and how it affects people. While the regime and its apologists try to blame sanctions […]<\/p>\n","protected":false},"author":19,"featured_media":240894,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[129,130,198,229],"class_list":{"0":"post-240893","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-iran","9":"tag-iran-protests","10":"tag-ncri","11":"tag-irans-economy"},"yoast_head":"\nIran\u2019s Economic Crises and How It Affects Society - NCRI<\/title>\n<meta name=\"description\" content=\"In recent days, Iran\u2019s state-run media have acknowledged some aspects of the country\u2019s economic crises and how it affects people.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ncr-iran.org\/en\/news\/economy\/irans-economic-crises-and-how-it-affects-society\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Iran\u2019s Economic Crises and How It Affects Society - 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