People in the lower 7 deciles of society are struggling with increasing food poverty due to high prices and unbridled inflation.
Destructive effect on people’s lives.
Increase in food poverty is clearly visible in people’s daily lives. Unbridled inflation and high prices have reduced people’s purchasing power and made their tables more and more unprosperous.
The implementation of the plan to remove the preferred currency has caused the destruction of people’s tables and a sudden jump in food poverty. The 100-200% increasing in the price of basic goods last year is the immediate result of the policy of removing the preferred currency.
According to published statistics, Rial reached its lowest value at the end of 2022. Rial has lost 94% of its value in the last decade alone. Currently, increasing in currency prices does not have much impact on the lives of the majority of Iranian people. People’s quality of life has decreased to such an extent that other parameters such as proper economy, education, health, recreation, etc. They have no place to express themselves. The decrease in people’s purchasing power has led to a decrease in purchases and ultimately to the bankruptcy of industries. The closure of factories and the unemployment of workers has now become a social political problem. Food poverty in the bottom 7 deciles of society, most of whom are wage earners, is quite clear.
Inflation is greater than during the Allied occupation
The designers and implementers of the economic policies of the presidential government are those who have no knowledge of economics. Most of them studied at Imam Sadegh University, whose educational principles are based on rejecting scientific theories of economics.
The inflationary stagnation ruling the country is even more deadly than the time of the occupation of Iran by the Allies in second world war. The World Bank has published the list of the first 10 countries in the world that are in a crisis of food security and food poverty caused by inflation. Iran is in the seventh place of this list. The important point is that food inflation has increased in most of these countries, but in Iran this inflation has reached a food security crisis.
Khamenei’s lack of weapons to control protests
There are economic theories regarding the cause of increasing food poverty in society. Some consider it as a natural process of a corrupt government. But there is a theory that considers the cause not economic but social political and considers this poverty as a means of suppressing the people.
According to this theory, Khamenei does not only use repressive forces to suppress protests and suppress people. But by creating a new wave of high prices and increasing food poverty, he is trying to force people to submit. Of course, this way of working is a double-edged sword, which will cause the most damage to Khamenei due to the aggravation of the relationship between the people and the ruling body during the 2022 protests. We must remember, dictators make their biggest mistakes in the last moments of their overthrow.
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