Iran’s state-run newspaper has warned of an impending economic catastrophe as inflation surges and the currency collapses, exacerbating poverty. Economic analyst Hamid Haji Esmaeili highlighted the government’s ineffective reliance on cash subsidies and urged significant reforms to combat the crisis. With social unrest on the rise, there is an urgent need for comprehensive policy changes to stabilize the economy and support citizens.
On February 12, the state-run newspaper Arman Meli issued a grave warning about Iran’s impending economic disaster, noting soaring inflation, a plummeting currency, and a population increasingly struggling with poverty. Experts highlight that stagnant wages and rising living costs are generating widespread public frustration. The capacity for normal citizens to afford basic necessities has deteriorated significantly as the Iranian rial sinks toward 100,000 per U.S. dollar, rendering governmental efforts to mitigate hardship largely ineffective.
Economic analyst Hamid Haji Esmaeili has underscored the dire economic landscape, citing mismanaged resources and persistent sanctions as contributing factors to this crisis. He stated, “Over the past two decades, due to relentless economic pressures and sanctions, the economic condition of Iranian citizens has steadily deteriorated.” He emphasizes that structural inefficiencies have compounded the nation’s economic woes, affecting not only the populace but the overall economy as well.
The Iranian labor market is in tatters, with significant numbers of individuals now reliant on assistance programs. Esmaeili noted that requests for aid from the Imam Khomeini Relief Foundation and similar organizations have increased drastically, with three million currently receiving help while at least eight million more require assistance. The stagnation of wages has left many families in crisis, struggling to meet their basic needs amid rising costs.
Esmaeili criticized the government’s continuous dependence on cash subsidies, asserting, “For nearly two decades, direct cash subsidies have been the government’s main policy to support the people.” He noted that as inflation surges, these subsidies have become ineffective, resulting in a growing impoverished population. He advocates for a comprehensive overhaul of the wage determination system, which has remained flawed over the years.
Housing costs represent a significant economic burden for many Iranian households. Esmaeili argues for the implementation of rent subsidies and direct financial support for tenants, which he believes is essential to relieve some of the economic pressure on families. He reiterated that merely raising wages is insufficient without comprehensive policies to support low-income citizens.
Moreover, systemic corruption within Iran’s government has exacerbated economic mismanagement, according to Esmaeili. He elaborated, “One of the primary causes of Iran’s economic turmoil is the widespread mismanagement of resources.” He contends that a restructure of the government’s economic policies is critical to addressing these root causes effectively.
As protests continue over the dire state of wages and living conditions, Esmaeili warned of the potential for social upheaval if substantial reforms are not instituted soon, stating, “If urgent economic reforms are not implemented, the country will face an explosion of social and political instability.” All indicators point towards a critical need for reform in response to the public discontent brewing across the nation.
In summary, Iran is facing a severe economic crisis characterized by rampant inflation, currency devaluation, and increased poverty. Expert analysis highlights systemic issues such as mismanagement, ineffective government policies, and a failure to adequately support the working class. Without urgent reforms and a shift away from ineffective cash subsidies, social unrest is expected to escalate, threatening the stability of the nation.
Original Source: www.ncr-iran.org
