By Hossein Beizayi
Since the mullahs’ regime seized power in Iran following the 1979 revolution, the country has been on a path of negative growth and economic decline. The regime has been plundering the nation’s wealth and resources and devastating industrial production and growth to further its own objectives. The regime’s economic bankruptcy has reached a point where its media and economic experts are admitting the economic challenges the government and the people have to face with the new budget.
Unbridled poverty, starvation, close to 50% inflation, high unemployment, suicides, detainments and imprisonments, torture and executions, and a host of other social and economic issues are the result of the corrupt regime of the mullahs. The mullahs are sinking the country into the vortex of financial corruption and bankruptcy.
Raisi’s sugar-coated statements and economic predictions
One of the primary presidential campaign promises of the regime’s President Ebrahim Raisi, known as “the Butcher Tehran”, was to curb the ever-increasing inflation and bring the matters of the economy to some sort of order and discipline. However, despite all the rosy claims of Ebrahim Raisi and his government officials, Inflation has set new records in the Iranian economy. Chronic inflation over the past four decades, along with the explosive inflation of the last three years, presents a terrifying, alarming, and disturbing picture of various aspects of the ordinary citizens in Iran.
The inflation rate of points in June 2022 compared to the previous month with a 12.2% increase, has reached 52.5%. The point-to-point inflation rate of the main group of “food, beverages, and tobacco” increased by 32.2% to 81.6%, and the group of “non-food goods and services” increased by 2.8% to 36.8%.
Of course, the accuracy of government statistics provided by Iran’s Statistics Center is ambiguous, to say the least, and according to many experts, real inflation is higher than the figures announced by the center and other institutions such as the Central Bank. Even if these numbers hold any truth, the basis of these statistics shows that for more than three years, the backs of the Iranian people have been bent under inflation above 40%, and in the last three decades, the average inflation in the country has been 20%. As a result, and in contrast, per capita, household income in Iran has declined and the indicators of “welfare” and “household consumption” are falling sharply.
For example, taxes increased fifteenfold according to the budget law in 2022 compared to 2011 (11 years ago), which shows the intensification of tax pressure on people.
The sharp rise in inflation in recent years has caused the incomes of working-class households and other low-income groups, to fall several steps behind inflation each year, widening the gap between incomes and expenditures and resulting in lower-than-standard lifestyles.
Many sections of society have eliminated expenses such as travel, leisure, culture, art, extracurricular education, or restaurants and now have to decide to provide the most necessary and vital living expenses, namely renting a habitable shelter, health, and minimum food.
Despite the declining baskets of many households, the income of millions of families is still not enough to rent a house and access the minimum essential food. In recent days, there have been reports of reduced consumption of essential foods, including meat, poultry, and dairy products. In the latest news, the deputy president of the Fruit and Vegetable Union, Esmail Moradian, announced a 25 to 30 percent reduction in demand for fruit in just one week. Meanwhile, the Secretary-General of the Community Nutrition Improvement Office of the Ministry of Health announced in 2017, six years ago, that 88% of Iranians consume fewer vegetables and fruits than needed.
The spread of city marginalization, unemployment, rising crime, and addiction, increase in the number of child laborers, the housing crisis, and child marriages are among the effects of degraded social status due to high inflation and unaffordability.
Sixty-one economists in Iran wrote a letter on June 10, warning of the consequences of recent policies.
Regime change only solution
The regime in Tehran has never had the slightest intention of improving people’s lives. One may remember that 43 years ago, Khomeini, the regime’s founder, and its first Supreme Leader promised free water, free electricity, free schooling, and a cash share of oil and gas for every citizen of Iran. Instead of free utilities, Iranians have taken to stealing bolts, doors, traffic signs, guardrails, and even tombstones to make ends meet. This is exactly why the regime of Ayatollah must be overthrown in order for the people of Iran to have the kind of life they deserve.