Continuation of Livelihood Protests in Iran; 'Stagflation' Hinders Welfare Creation

As the budget for the year 1404 in the Iranian calendar is being drafted in the Islamic Consultative Assembly, livelihood protests are ongoing. A former member of this governmental body states that even if salaries in Iran were to increase fivefold, the standard of living for the people would still be 'close to the global poverty line.' Ismail Gerami Moghadam, a former member of the Islamic Consultative Assembly from the reformist faction, stated in a note published in the Etemad newspaper on Sunday, December 4, that 'stagflation' is an obstacle to creating welfare and overcoming it is 'very difficult.' He emphasized that '60 percent of Iran's economy is dependent on institutions whose financial activities are not reflected in the government’s income and expenditure,' and 'to analyze the situation, one must focus on the 40 percent of the visible economy of Iran.' Previously, Jamshid Asadi, an economist, told Voice of America that between 60 to 80 percent of Iran's economy is controlled by the government and is under the foundations and companies affiliated with various institutions of the Islamic Republic. Concurrently with these statements, livelihood protests continue in Iran. On Sunday, December 4, a group of social security retirees gathered in front of the organization’s building in Tehran to protest their living conditions. Meanwhile, employees of the Arkan Salth oil and gas company in Gachsaran, who have been protesting for months about their living conditions and the violation of their rights by officials, held another protest march. Reports on social media also indicated that steel industry retirees held a protest march in Isfahan. Another report from Shush in Khuzestan province showed retirees chanting: 'Our message to the government is shame, shame.' A large portion of Iran's annual budget is allocated to unaccountable institutions under the supervision of Ali Khamenei, the leader of the Islamic Republic, which, according to Gerami Moghadam, are 'mostly tax-exempt.' Meanwhile, the Statistical Center of Iran announced on the first day of Azar this year that the annual inflation rate has reached 33.1 percent, and Ahmad Maidari, the Minister of Cooperatives, Labor, and Social Welfare, claimed that pension funds are the cause of inflation in Iran. The expansion of protests by various groups, including retirees, workers from various industries, teachers, those who have lost money, and nurses and healthcare workers, indicates increasing livelihood problems in Iran and the indifference of the Islamic Republic's officials. The continuation of livelihood protests in Iran coincides with escalating disputes between Israel and the Islamic Republic, and unrest in Iran's financial markets continues.