The National Council of Resistance of Iran (NCRI), and the People’s Mujahedin of Iran (PMOI / MEK Iran) reported that the economic crisis in Iran continues to grow more severe, with inflation on the rise and prices becoming extortionate. Following the regime’s rigged election, the state media have acknowledged parts of the economic crisis and how it was caused by the Iranian regime.
The state media Eghtesad-e Pouya Daily cautioned officials of the dire consequences of the worsening of the economic crises on 30 June 2021.
“The 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,” they wrote.
Eghtesad-e Pouya further stated that “inflation and the skyrocketing prices” are causing great hardship in people’s lives.
“In the absence of proper occupations, Iran’s sick economy has made the people feel worse than before, and living conditions have become very difficult. Meanwhile, the value of the country’s 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,” Eghtesad-e Pouya warned.
While the majority of Iranians are impoverished, it is the Iranian workers who are the most affected. Hassan Rouhani’s government recently increased worker salaries, but the state-run Eghtesda-e Pouya claims that “workers’ wages have been destroyed” due to rising inflation. “Wage increases are based on inflation from the previous year, and now 40% of workers are poor,” Eghtesad-e Pouya said.
The state-run Eskenas Daily explained the real cause of Iran’s high inflation, “Economists 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.”
“The 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’s liquidity growth had reached 40%,” They continued.
The sham presidential election in Iran finished on 19 June. Despite the regime’s new president, the infamous Ebrahim Raisi made empty promises of economic reform, the state-run media concede that he will be unable to do so. The regime’s systemic corruption is to blame for Iran’s economic woes, such as high inflation and skyrocketing prices. As a result, Raisi will not be able to resolve this crisis.
If the regime does not address the extreme corruption and economic turmoil that it has created, they will continue to live luxurious lives while the majority of Iran’s citizens suffer in abject poverty.