Iran is on the brink of severe economic collapse with soaring inflation, a collapsing currency, and a growing impoverished population, as highlighted by economists and the state-run Arman Meli newspaper. Despite government aid efforts, stagnant wages and rising living costs are contributing to increasing public discontent. Experts argue that internal policy failures and corruption play significant roles in exacerbating the crisis, calling for urgent economic reforms to prevent widespread social unrest.
On February 12, the state-controlled newspaper Arman Meli issued a grave warning regarding Iran’s precarious economic state, highlighting escalating inflation, a plunging currency, and a population mired in poverty. Economic specialists contend that the country’s economic crisis is spiraling, driven by stagnant wages and an unaffordable cost of living.
Hamid Haji Esmaeili, an economic analyst, noted that over two decades of sanctions and relentless economic pressures have led to the deterioration of citizens’ living conditions. He pointed out that structural inefficiencies in resource allocation have exacerbated the crisis.
The Iranian rial has nosedived to around 100,000 to one U.S. dollar. This depreciation, coupled with soaring inflation, has eroded the purchasing power of ordinary Iranians, making it increasingly difficult for lower-income families to afford basic necessities. Government attempts to reduce poverty through cash handouts and rationed packages have largely fallen short.
Esmaeili criticized the government’s reliance on cash subsidies as ineffective in addressing the crisis. He remarked, “For nearly two decades, direct cash subsidies have been the government’s main policy to support the people. However, with inflation soaring and prices spiraling out of control, these payments have lost their effectiveness.”
Key challenges confronting Iran in 2024 include severe gas shortages, power outages linked to mismanagement, and ongoing currency depreciation, which together signal a looming economic disaster.
The plight of the Iranian working class is particularly dire, with government assistance programs overwhelmed. Data reveal that requests for aid have risen significantly, with financial aid currently required by at least half the population to meet basic needs.
Esmaeili calls for comprehensive changes to the wage determination process, stating that governmental responses, such as annual 20% wage hikes, have failed to address rising inflation. He asserted that piecemeal solutions are insufficient given the deepening economic malaise.
Housing costs remain a significant burden for many families, especially renters. Esmaeili urged the government to adopt supportive measures like rent subsidies to alleviate pressures on struggling households.
Economic turmoil in Iran is further complicated by systemic corruption and inefficiencies. As Esmaeili emphasized, “One of the primary causes of Iran’s economic turmoil is the widespread mismanagement of resources.” He advocates for a thorough reevaluation of resource distribution and governance practices.
Notably, while the government attributes economic woes primarily to external sanctions, Esmaeili argues that internal policy failures also play a crucial role. He concluded that meaningful reforms targeting internal barriers are essential for restoring economic stability.
As Iran’s economic situation worsens, social unrest has surged in response to rising discontent over living conditions and corruption. Esmaeili warned that without immediate reforms, the country is at risk of severe social and political upheaval.
Iran is facing a critical economic crisis characterized by rampant inflation, currency devaluation, and increasing poverty among its citizens. Experts highlight the government’s ineffective policies and systemic corruption as underlying causes of the turmoil. Urgent reforms are necessary to prevent social unrest and ensure the stability of the Iranian economy. Without comprehensive changes to both economic policies and resource distribution, the situation is likely to deteriorate further.
Original Source: www.ncr-iran.org
