Iran’s state media addressed the country’s economic challenges in recent days, immediately after the regime’s sham election, but also how the regime’s new president, Ebrahim Raisi, will deal with such challenges.
“There are also problems for the future president. The poor state of macroeconomic indicators, the closing of the demographic window, declining household incomes and social crises, social security and troubled pension funds, declining oil revenues, negative capital growth, and finally environmental challenges are all threats to the future government,” On Saturday, the state-run Donyay-e Eghtesad published an article.
“Amid stagflation and economic problems in society, we are witnessing an increase in unemployment, and workers have not received their salaries and bonuses for months. Many women among these workers,” Also wrote the state-run Eghtesad-e Pouya on June 22.
“Economic problems have caused people’s tables to shrink,” says Eghtesad-e Pouya.
“Last year, the inflation rate was 39 percent. The number of people living in poverty has risen to 12 million tomans. Salary increases of 40% were made earlier this year.
The salary of the workers, including bonuses and the entitlement to housing, total almost 4 million tomans. Even if we ignore inflation, workers could only live their ideal lives in one-third of a month, or just nine days, on their current incomes,” according to the article by Eghtesad-e Pouya.
Commodity prices in Iran are having an effect on people’s lives. The regime’s banknote production is the primary cause of Iran’s growing inflation rate.
The government has produced significant liquidity expansion as a result of its uncontrolled banknote production to compensate for its budget deficit. Inflation and high prices result from the liquidity rate not matching Iran’s low output rate.
“In our economy, even in years when the growth of the monetary base was low and reasonable, liquidity has increased. For example, the monetary statistics in 2014, in which the growth of the monetary base was 10%, but the growth of liquidity was 31% confirms this fact.
Therefore, in the absence of budget deficits or sanctions, what has led to chronic inflation is the banking system,” On June 13, the state-run Frahikhtegan daily addressed the issue.
The rising pace of inflation has resulted in inflated prices. “As prices rise, poverty becomes more visible, and social crises become more common. Students are currently committing suicide as a result of their families’ poverty, preferring death to life. In addition, to make ends meet, women turn to prostitution,” Eghtesad-e Pouya continued.
Iran’s society has become a ticking bomb as a result of these economic and social crises. Furthermore, people do not trust the government can solve their problems, as evidenced by the recent widespread boycott of the regime’s sham elections.
As a result, the regime’s state media warn officials of social turmoil and economic collapse. “Economic threats will cause the country to face problems sooner or later,” the state-run Donyay-e Eghtesad warned.