Iran Economy NewsIn Iran, ‘the Rich Enjoy High Inflation’

In Iran, ‘the Rich Enjoy High Inflation’

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Under the current rule in Iran, the rich enjoy inflation, a phrase used by government outlets about inflation in Iranian society.

On April 6, these media outlets admitted that all over the world, when inflation occurs, inflation first and foremost targets the rich with high incomes. But in Iran, this law is the opposite.

The Etemad daily wrote: “A person who has several companies and cars in Iran becomes richer every day with the increase of inflation, and the burden of inflation will again fall on the low-income deciles of the society.”

In Iran such rich people are none other than the elements of government factions and their affiliates.

Etemad added: “The average economic growth during these years was zero and our seven deciles of income suffered the most in terms of economic challenges, and it can be said that in these difficult conditions, only the upper deciles of the society became rich.”

The Khabar Online outlet in an article entitled, ‘Our rich enjoy high inflation’, quoting a government economist wrote: “Who in Iran, except the rich who have connections, rents and large collateral, can access large loans? Considering 40 percent inflation and 18 percent interest rate on loans, if a person receives a billion tomans loan, receiving the same loan will include 22 percent interest for this person.” (Khabar Online daily, April 6)

Explaining the cause of the situation, this expert added: “There is no wealth tax or income tax in Iran, and this also causes the growth of inflation to end in favor of the rich. A person who has several companies, houses and inflation in Iran becomes richer every day with the increase of inflation and the burden of inflation will again fall on the shoulders of the low-income deciles of the society.”

He then made a simple comparison and said: “In countries where the tax system works properly, the pressure is on the rich and they have to pay high tax rates, but in Iran there is no income and wealth tax and our rich enjoy high inflation, while the banking system and subsidies are available to the rich. Because they use cheap energy carriers for their homes and cars.” (Khabar Online daily, April 6)

Poor people are suffering under the heavy burden of inflation while state media report a staggering increase in inflation in recent days.

The Donya-e-Eghtesad daily on April 22, 2021 wrote: “With the publication of this statistic, the first picture of the increase in the consumer price index was recorded this year. In April 2021 monthly inflation, point-to-point inflation, and average inflation, have recorded three points.

“According to these statistics, the first month of spring has been associated with relatively high inflation and has experienced a significant increase in the consumer price index. The announced statistics also show an average inflation of 38.9 percent.”

And the State TV News Channel reported: “In all three inflation indices, the monthly, the point-to-point, and yearly rates increased in April 2021. This means that the beginning of 2021 was accompanied by a 50 percent increase in the cost of Iranian households compared to the previous year.”

If the ’50 percent increase in household spending over the previous year’ is taken into account, it means that more people are below the poverty line because incomes are not enough to cover the exorbitant costs of living.

According to the state media, this unbridled inflation has caused 9 deciles of the society to live a hard life under the burden of poverty and high prices, and specifically, while the poverty line is 10 million Tomans, according to the regime‘s own experts, a family of three or four has a maximum wage of 3 million. This is at a time when many people are unemployed and have no income at all.

In return, the rich take the looted money out of the country and deposit it in their accounts in foreign banks, and some of them invest in buying and selling houses and villas abroad.

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