The state-run Khabar Fori website wrote on May 22 that the phenomenon of “poor billionaires” has become one of the latest signs of the economic crisis in Iran. Economists say the uncontrolled rise in asset prices, alongside the collapse of people’s purchasing power, has created a society in which many citizens appear wealthy on paper but in practice are unable to manage their daily lives.
In recent years, chronic inflation and the collapse of the national currency’s value have caused housing, automobiles, and durable goods prices to increase severalfold. These price increases have turned millions of people into owners of billion-rial assets. Nevertheless, a large portion of these same individuals face financial crises when trying to pay for basic living expenses, car repairs, home maintenance, or even essential goods.
Economists describe this situation as the rise of “poor billionaires,” a term that reflects the obvious contradiction in today’s Iranian economy — a society in which the apparent value of assets has expanded while the real ability to live has collapsed. Amir Hossein Khaleghi, an economist, told the state-run Fararu media outlet on May 14: “We are now facing a type of poverty that cannot be measured solely by income or wealth indicators. A phenomenon gradually revealing itself is the emergence of poor billionaires — people who may appear to own cars or homes, but cannot afford their maintenance, repairs, and ongoing expenses.”
The sharp rise in housing prices is one of the most important factors behind the emergence of the poor billionaire class. Today, even a small apartment in Tehran is worth tens of billions of rials. However, many owners of these homes have incomes that do not even cover ordinary living expenses.
The same situation can be seen in the automobile market. Cars that until a few years ago were among the cheapest products on the market now carry billion-rial price tags. Yet the owners of these vehicles struggle to pay for insurance, repairs, or even replacement of consumable parts.
The economic crisis has also spread to household appliances and consumer goods. Many families can no longer afford to replace worn-out appliances. Repairing a refrigerator, washing machine, or air conditioner has become a heavy expense for part of society.
Experts say the phenomenon of poor billionaires is the direct result of structural inflation and failed economic policies. Under such conditions, the increase in the nominal value of assets not only fails to create prosperity but also imposes greater psychological and economic pressure on people.
The Erosion of the Middle Class Under the Pressure of Crisis
At the same time as poverty expands, Iran’s middle class is rapidly eroding. A social group that once played an important role in cultural, social, and economic activities now spends a large portion of its income merely on survival.
Many teachers, engineers, office employees, doctors, and professionals who until a few years ago were considered part of the middle class are now crushed under the costs of housing, food, healthcare, and transportation. Living expenses have risen so sharply that a large segment of society no longer has the ability to participate in cultural and social activities.
Economists warn that the destruction of the middle class confronts any society with deep political and social crises. This class usually plays a balancing and reformist role. However, economic pressure has pushed it closer to the lower classes.
Meanwhile, many analysts speak of the emergence of a state of social suspension in Iran — a situation created by the regime in which people neither have hope for the future nor see any clear prospect for change.
The Regime’s Economic Deadlock
Experts trace the roots of the current crisis to decades of structural corruption, mismanagement, ineffective policies, and heavy government spending. Chronic inflation, the collapse of the national currency’s value, sanctions, and political crises have pushed Iran’s economy to a point where even asset owners feel poor.
Alongside these problems, uncertainty and regional crises have also pushed the economy into a deep recession. Many businesses remain in a state of limbo, and people have stopped making non-essential purchases.
It must be emphasized that a structure which for decades has spent the country’s resources on corruption, repression, and political projects has now brought society to a stage where even owning assets is no guarantee of a quality life. Under such conditions, millions of citizens are struggling merely to preserve the minimum necessities of life.
