Iran Economy NewsDestroyed Capacities of Iran’s Economy

Destroyed Capacities of Iran’s Economy

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Iran’s economy is grappling with several crises due to structural corruption. Crises that result in negative growth, inflation, liquidity, declining people’s baskets, poverty, and misery for at least 60 million people.

A part of this critical situation is clearly seen in the pouring of thousands of liters of milk by deprived ranchers in front of the regime’s administrative centers or dumping agricultural products in front of the regime’s Agricultural Jihad offices. It is also seen in the protests of farmers and ranchers against water scarcity, high costs, and shortage of livestock inputs.

The situation is so grim that the regime’s experts, not out of pity for the people who are crushed under the burden of a shattered economy, but in fear of the uprising of the deprived, warn each other of a devastating flood that will sweep everyone away.

“Now, Iran’s economy is held hostage because of the interests of the mafias, and the blow of this mafia is enduring the people. We are facing the phenomenon of the conquest of the power structure by greedy people, brokers, and corrupt people. The main issue is that Iran’s economy is in the hands of the unproductive. Rent-seekers and speculators are occupying the economy.” (State-run daily Etemad, July 14, 2021)

These freeloaders and mafia gangs have also made every effort to isolate and imprison Iran in the name of independence from other countries especially the West so that they could plunder Iran’s reserves and wealth safely and, destroy national assets.

“In recent decades, Iran’s economy has moved away from development. Political tensions and the escalation of sanctions, along with mismanagement and inefficiency of managers in various governments, have exacerbated this issue and prevented the Iranian economy from achieving growth and development, and led to the spread of poverty as much as possible. Today, Iran’s economy is like an island far removed from the world economy.” (Akhbar Sanat, July 14, 2021)

“Today, we do not have stable exports and imports from neighboring countries and the world, and in trade agreements, we have not defined a reciprocal flow for any of the countries and international unions,’ said a spokesman for the country’s merchants and traders.” (Donya-e-Eghtesad, July 10, 2021)

In the Presidential election, each of the candidates made a series of bogus promises, none of which are practical. But suppose their fantasies become real, and we can see it four years later. For example, a subsidy of 450,000 Tomans should be paid to 40 million Iranians. A marriage loan of 500 million Tomans has been given and two million houses are under construction.

This situation can be considered almost similar to the time of Ahmadinejad, of course minus the legendary income of oil. Such money-wasting has no other benefit than causing more severe inflation and a major mess in the financial and budgetary system.

Even now, the crushing budget deficit has flattened the Rouhani government. So higher costs mean higher inflation and more severe economic and social crises.

Mohammad Tabibian, an economist described this tumultuous and dangerous situation as follows: “If these slogans are implemented in the coming 2025, they will not achieve much other than creating a new turmoil in the budget, banking, financial, social, and economic systems. The country’s economic problems cannot be solved by paying more subsidies and loans.” (Tejarat News, July 14, 2021)

This expert pointed to the economic crisis and summarized:

“If they think that the government can solve the housing problem by building houses. It is not bad to study the hundred-year history of governments trying to solve the housing problem.

“Now see what has happened to Tehran. All the gardens and green spaces around Tehran have been turned into residential lands and there is still not enough housing in this city.

“See what a disaster has happened in this city and the cities that have grown too big. The degree of the plainness of the minds of some officials is astonishing, they imagine that young people do not get married because they are waiting for their marriage loan to be approved so that they can get married.

“Young people avoid marriage because they do not have a job and their future and that of their children are unclear. Were they lending money to someone in the pre-revolutionary period and throughout history?

“These gentlemen think that money should be paid to solve the problems of all fields. For a nation to have a better life, real commodities are needed, and money does not work.

“Money only creates inflation. Regarding the fact that 70% of the production capacity is empty, does it mean that the current government did not know how to deal with and use the out-of-work production capacities and Mr. Candidate does?

“This view is not right. This is the entire performance of our economy, and its potential capacity is this situation which you can see. As long as there is no investment, there is no potential to take advantage of it.” (Tejarat News, July 14, 2021)

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