{"id":258012,"date":"2022-04-20T13:42:02","date_gmt":"2022-04-20T12:42:02","guid":{"rendered":"https:\/\/www.ncr-iran.org\/en\/?p=258012"},"modified":"2023-02-04T18:49:13","modified_gmt":"2023-02-04T17:49:13","slug":"irans-freefall-economy-whos-to-blame","status":"publish","type":"post","link":"https:\/\/www.ncr-iran.org\/en\/editorial\/irans-freefall-economy-whos-to-blame\/","title":{"rendered":"Iran\u2019s Freefall Economy, Who’s To Blame?"},"content":{"rendered":"
\"poverty-iran2\"
The horror of economic disaster in Iran: This child laborer, on of tens of thousands, scavenging garbage dump to make ends meet<\/figcaption><\/figure>\n

Nine months into the presidency of Ebrahim Raisi<\/a> in Iran, it is becoming crystal clear that he has failed drastically in every respect, especially when it comes to the economy. None of the regime\u2019s state media outlets, even those affiliated with the ruling faction associated with the regime\u2019s Supreme Leader Ali Khamenei<\/a> and Raisi, can deny the devastating economic situation in Iran.<\/p>\n

People are grappling with despair day in and day out. Senior Raisi administration officials, unable to deny this stark reality, are placing the blame on the previous cabinet of \u00a0Hassan Rouhani<\/a>.<\/p>\n

There are two main indicators for this economic freefall in Iran: liquidity<\/a> and inflation<\/a>, which are both skyrocketing.<\/p>\n

\u201cThe reason behind the current inflation rates is the $144.6 billion liquidity that we received from the previous administration,\u201d said Bahador Jahromi, spokesman of the Raisi cabinet, on Tuesday.<\/p>\n

Aside from the regime\u2019s internal disputes and blame games<\/a>, and the Raisi cabinet\u2019s attempt to deny any responsibility for the country\u2019s catastrophic circumstances, Jahromi\u2019s remarks shed light on the disastrous economic conditions in Iran without any solution in sight.<\/p>\n

However, if we accept these remarks from the Raisi cabinet spokesman at face value, it means that in the past nine months alone liquidity in Iran has risen by $22.6 billion. This increase, compared with the total volume of liquidity in Iran back in 1981, indicates a 2,400-fold increase.<\/p>\n

Experts associated with the regime\u2019s own institutions are forecasting the country\u2019s liquidity to increase at a steady rate of around 40 percent and \u201cmost certainly surpassing the $180 billion mark\u2026 and at best it will reach just below $200 billion,\u201d according to an article published on Tuesday, April 19, in the state-run Mardom Salari daily. This will mean an 18,000-fold increase in liquidity compared to 1981.<\/p>\n

These mindboggling figures indicate the country is fast heading towards complete economic collapse and the destruction of production lines, generating further poverty and general disparity. The regime\u2019s own institutions are acknowledging the fact that Iran\u2019s middle class is melting fast, and many families are joining the country\u2019s increasingly impoverished population which is currently estimated to be at least 60 percent<\/a>.<\/p>\n

This means the population living in utter poverty which doesn\u2019t even have enough to eat is estimated at 30 percent, meaning 25.5 million of Iran\u2019s 85 million population. This further explains why we are seeing more footage on social media of people across the country searching for food in trash cans. \u201cPeople searching for food in the trash has spread from major cities to villages\u2026 and trash canisters in many cities cannot provide for the rising number of people searching in the trash for food,\u201d according to a piece published on April 18 in the state-run Hamdeli daily.<\/p>\n

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November 3 – Tehran, #Iran<\/a>
A young man is seen searching in trash, most likely for something to sell. More than 60 million people are living in poverty across the country.#41YearsOfMisery<\/a> pic.twitter.com\/jsjJpeo4Od<\/a><\/p>\n

— People's Mojahedin Organization of Iran (PMOI\/MEK) (@Mojahedineng) November 2, 2020<\/a><\/p><\/blockquote>\n