Economic Experts: Public Discontent Increases Due to Livelihood Problems

A number of economic experts in Iran have criticized the rising inflation, stating that the mismatch between incomes and living costs has led to increased public discontent and emphasizing the government's inability to solve these economic issues. Hossein Zaghfar, an economist, mentioned in an interview with the newspaper Etemad published on Saturday, November 20, that the root of unrest in recent years is the 'inability of households to meet basic needs.' He pointed out that there has been no increase in incomes and emphasized that in recent years, wage levels have not matched the rising prices of goods. Iranian media reported in September of this year that during the two years of Ebrahim Raisi's government, inflation of at least '250 percent' has been imposed on people's livelihoods, and 'workers' wages are one-third of the poverty line.' Zaghfar also called claims about the impact of wage increases on inflation growth 'incorrect.' According to this economic expert, the share of wages in the country's gross domestic product is estimated to be less than 15 percent, and the high inflation is due to 'the wrong policies of officials.' Recently, Ali Khodaei, a labor member of the Supreme Labor Council, listed 'the imbalance between wages and costs' and the lack of 'job security' as among the problems faced by workers. Farshad Momeni, an economics professor at Allameh Tabatabai University, has also considered the decline in people's purchasing power compared to the past to be a very serious issue. In an interview with Etemad, this economist mentioned income inequalities with 'unprecedented dimensions' as 'the beginning of structural changes' in Iran. Meanwhile, protests over livelihood issues among various groups such as workers, retirees, teachers, and healthcare staff have been increasing in recent years. Momeni described inflation as a 'political phenomenon' and a product of the understanding of the country's political officials, calling for a 'more responsible approach' from the government in economic decision-making. Kamal Ataei, an economic researcher, also reported the emergence of 'stagflation' coinciding with the multiple increases in housing and essential food prices and the exit of more economic enterprises from the market. In an interview with the online newspaper Faraz, this economist mentioned the dominance of 'economic oligarchism' and the capture of legislation by the government as leading to the complete control of the government over oil revenues. The ILNA news agency recently reported the minimum poverty line in Tehran to be 30 million tomans and at least 23 million tomans in other cities. This is while the average salary of an employee is about 10 million tomans and the average wage of a worker subject to labor law, married with children, is about 8 million tomans. Tasnim reported on workers living in tents; salaries below 15 million tomans mean poverty. Retirees protested against a 20 percent increase in salaries: it does not even reach half the poverty line. A labor activist reported the prevalence of 'self-treatment'; 'workers' healthcare' is at risk. The spread of slum housing; the Research Center of the Parliament: 6 million people have 'informal' housing.