News : Economy
- Published: Thursday, 04 July 2019
By Mahmoud Hakamian
The Iranian regime has destroyed the country’s economy as a result of extreme mismanagement and widespread corruption. The country should be comfortable, if not wealthy, because it is extremely resource rich. The reality is much darker – more and more people are falling into extreme poverty and the situation is set to get worse, not better.
Inflation has been increasing at a very high rate and now large parts of the population are struggling to afford amenities that would have been within reach not that long ago. Purchasing power is in decline and the average family is having to make do with a decreasing amount of food.
It is estimated by the country’s Center for Statistics that the costs to feed a family are 50 per higher in the current Persian year compared to the previous year. And to make matters worse for the people, wages have barely increased at all when compared to the inflation rise.
In April last year, the average cost of one kilogram of lamb meat would have been around 766,000 Rials. In April this year, the cost had risen by 43 per cent to 1,100,000.
Onions that would have cost 18000 Rials per kilogram have increased to 110,000 Rials a year later, representing an increase of 511 per cent. Rice, a staple for the vast majority of families, increased by over 50 per cent, going from 136,000 Rials to 205,000 Rials.
The Iranian Center for Statistics reported that the cost of food and drink has increased by more than 70 per cent, and the total cost to raise and look after the average family has gone up by more than 50 per cent. However, wages have not risen much beyond 20 per cent to be able to cope with this.
The Jahanesanat newspaper reported that a normal family earning minimum wage would need an extra 22.5 million Rials per month in order to be reasonably comfortable.
These, however, are figures given out by the state, meaning that they must be taken with a pinch of salt as they tend to downplay the gravity of negative situations.
More accurate studies, carried out independently of Iran’s leadership, indicate that the average family requires at least an extra 40 million Rials per month in order to live comfortably.
The Iranian regime has had plenty of occasions to remedy the situation but it has always chosen to put its own agenda first. The people are fed up with the corrupt leadership that only ensures its own pockets are well-lined.
This is one of the reasons why the people of Iran are calling for regime change. Instead of ignoring the many social issues that are adversely impacting the lives of the people, Iranians want a leadership that will ensure terrorist activities are not put before their needs. Furthermore, they want the regime to stop spreading terror across the region and beyond. They want peace, freedom, the respect of human rights and democracy and they know their only hope of ever achieving this is via regime change.