{"id":242350,"date":"2021-06-30T07:34:47","date_gmt":"2021-06-30T12:34:47","guid":{"rendered":"https:\/\/www.ncr-iran.org\/en\/?p=242350"},"modified":"2023-01-30T16:03:15","modified_gmt":"2023-01-30T15:03:15","slug":"irans-economic-crises-and-its-effects-on-society","status":"publish","type":"post","link":"https:\/\/www.ncr-iran.org\/en\/news\/economy\/irans-economic-crises-and-its-effects-on-society\/","title":{"rendered":"Iran\u2019s Economic Crises and Its Effects on Society"},"content":{"rendered":"

\"Iran-economic-crises-ncri-1\"<\/p>\n

Iran\u2019s economic crisis is deepening. People face skyrocketing prices and rising inflation. In recent days following the regime\u2019s sham election<\/a>, state media acknowledged some aspect of the economic crisis<\/a> and the regime\u2019s role in creating and worsening it.<\/span>\u00a0<\/span><\/p>\n

State media also warn officials of the consequence of ongoing social and economic crises.<\/span>\u00a0<\/span><\/p>\n

\u201cThe economic situation of the country is unhealthier and more chaotic than it can be imagined. It has dangerous and harmful social, political, and moral effects and consequences and should not be ignored. This chronic disease is spreading before the eyes of the authorities,\u201d wrote the state-run Eghtesad-e Pouya daily on Wednesday, June 30, 2021.<\/span>\u00a0<\/span><\/p>\n

Eghtesad-e Pouya then acknowledges that \u201cinflation and the skyrocketing prices\u201d are affecting people\u2019s lives.<\/span>\u00a0<\/span><\/p>\n

While\u00a0the majority of\u00a0Iranians live under the poverty line, the Iranian workers are suffering the most. Recently, Hassan Rouhani\u2019s government raised the workers\u2019 salaries, but according to the state-run\u00a0Eghtesda-e Pouya, \u201cWorkers\u2019 wages have been destroyed\u201d due to the rising inflation rate. \u201cWage increases are based on last year\u2019s inflation, and now 40 percent of workers are below the poverty line,\u201d Eghtesad-e Pouya acknowledged.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cThe poverty line is determined in the society, but the working society operates with a salary of 2 .6 million Tomans. Even if workers receive bonuses, their salary still does not exceed about 3.3 million tomans. In other words, workers\u2019 salaries are about 7 million tomans below the poverty line,\u201d Eghtesad-e Pouya wrote on Wednesday.<\/span>\u00a0<\/span><\/p>\n

\u201cWorkers have no job security. more than 70% of the workers are minimum wage earners, and many of them do not receive salaries and benefits. With the income they have, they can only cover a part of their living expenses. At present, there are areas where the cost of rent is about 3 million tomans, in the worst places it is about 5.1 million tomans. In such circumstances, a worker spends about 50% of his income on housing,\u201d Eghtesad-e Pouya acknowledged part of the workers\u2019 plight.<\/span>\u00a0<\/span><\/p>\n

\u00a0But what has increased Iran\u2019s inflation rate and the skyrocketing prices?\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cEconomists believe that if we see very high inflation in the country today, it is due to the high volume of banknote printing by the central bank in 2020,\u201d the state-run\u00a0Eskenas\u00a0daily wrote in this regard on Wednesday.\u00a0<\/span>\u00a0<\/span><\/p>\n

\"Weekly-Signe-up-logo-1\"<\/a><\/p>\n

\u201cThe report of the Statistics Center shows that inflation at the end of the tenth government was 35%, which according to the latest statistics reached 43% in June 2021. One of the important factors in creating and intensifying inflation in the Iranian economy is banknote printing and liquidity growth. According to statistics, the average liquidity growth in the 1960s was 17%, in the 1970s 32%, in the 1980s 18%, in the 1990s 27%, in the 2000s 28%, and from 2011 onwards It was 8.27%. The Central Bank report also shows that in 1990, Iran\u2019s liquidity growth had reached 40%,\u201d\u00a0Eskenas\u00a0further explained the cause of Iran\u2019s high inflation.\u00a0<\/span>\u00a0<\/span><\/p>\n

In other words, the regime is behind the current economic crisis.\u00a0<\/span>\u00a0<\/span><\/p>\n

Iran\u2019s sham presidential election ended on June 19. While the regime\u2019s new president, the notorious<\/a> Ebrahim Raisi<\/a>, gave hollow promises of economic reform, state-run media acknowledge he would not be able to take any meaningful action.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cThe worrying trend of rising inflation, along with the collapse of economic structures, has raised concerns that the new government may face a major challenge,\u201d\u00a0Eskenas\u00a0daily wrote in this regard.<\/span>\u00a0<\/span><\/p>\n

Iran\u2019s economic crises, such as high inflation and skyrocketing prices, are due to the regime\u2019s institutionalized corruption.\u00a0Therefore\u00a0they would not be able to resolve these crises.\u00a0<\/span>\u00a0<\/span><\/p>\n

While regime officials live luxurious lives, people are under heavy pressure.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cWhile officials and politicians feel good these days, people are suffering. People are being crushed under poverty and inflation,\u201d wrote the state-run Aftab-e Yazd on June 30.\u00a0<\/span>\u00a0<\/span><\/p>\n

Iran\u2019s economic intensifying crises, coupled with the regime\u2019s oppression and corruption, have turned society into a powder keg. Therefore, state-run media warn officials of the \u201cdangerous\u201d consequences of the current situation.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cOfficials should not ignore embezzlers and economic terrorists and should deal with them. You cannot ignore their cases and only give promises. The negative effects would be extremely harmful to the society and undermine the [regime’s] integrity,\u201d Eghtesad-e Pouya warned about ongoing corruption in the regime.\u00a0<\/span>\u00a0<\/span><\/p>\n

\u201cIn the absence of proper occupations, Iran\u2019s sick economy has made the people feel worse than\u00a0before, and\u00a0living conditions have become very difficult. Meanwhile, the value of the country\u2019s currency has fallen sharply. Surely, the social ills of poverty caused by currency fluctuations and class divisions are so fragile that their impact on social structures and government institutions will be very damaging,\u201d Eghtesad-e Pouya warned officials.<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Iran’s economic crisis is deepening. People face skyrocketing prices and rising inflation. In recent days following the regime’s sham election, state media acknowledged some aspect of the economic crisis and […]<\/p>\n","protected":false},"author":19,"featured_media":242351,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[129,198,229,507],"class_list":{"0":"post-242350","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-iran","9":"tag-ncri","10":"tag-irans-economy","11":"tag-ebrahim-raisi"},"yoast_head":"\nIran\u2019s Economic Crises and Its Effects on Society - NCRI<\/title>\n<meta name=\"description\" content=\"Following the regime\u2019s sham election, Iran's state media acknowledged some aspect of the economic crisis and the regime\u2019s role in them.\" \/>\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-its-effects-on-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 Its Effects on Society - 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