Iran’s Socio-Economic Crisis
The National Council of Resistance of Iran (NCRI), and the People’s Mujahedin of Iran (PMOI / MEK Iran), reported that according to mullah’s state-run media the country is in a condition of financial collapse and that the Iranian people despise the government for contributing to such collapse. As a result, the Iranian people will be boycotting the upcoming elections as a form to express their demand for a regime change.
No matter who wins the election
The Donya-e Eghtesad wrote about the elections, arguing that it doesn’t matter who wins the presidential election because the current ruling theocracy can’t address the country’s most fundamental problems. They claimed that whoever is elected president will simply continue the status quo, posing additional issues such as 50% inflation and zero economic growth.
“People’s faith, hope, beliefs, and trust in the system have been damaged over the last four decades, particularly in the last eight years,” the Javan daily wrote on the same day. As a result, public vote turnout has declined. People are well aware that those in charge of the current situation have the power to demand adjustments or change the situation in their favor.”
Lack of legitimacy
According to the Hamdeli daily, the system lacks “popular legitimacy” and is unable to establish a “social movement” because it is unable to deceive the public with false reform promises and cannot deal with contemporary “political polarization.”
On 23 May, the state-run news agency ISNA wrote about the current financial collapse and reported a 70 percent increase in the pricing of six categories of food items. The report went on to say that since the beginning of 2021, inflation has risen in three indicators: monthly, annually, and point-to-point, with point-to-point inflation, which represents an increase in household spending compared to the same period the previous year, reaching 50%.
The unrestrained price of commodities
Oil prices have increased by 30%. The unrestrained price of other commodities in the Iranian household’s basket of commodities is also on the increase. Other items that increased by 72.9 percent include ‘tea, coffee, cocoa, soft drinks and juices,’ which climbed by 78.4 percent, ‘milk, cheese and eggs,’ which increased by 75.3 percent, ‘fish and shellfish,’ which grew by 73.1 percent, ‘red meat and poultry,’ which grew by 73.1 percent, and ‘red, white meat and its products,’ which climbed by 72.9 percent.
In a study published by Iran’s statistics center, the annual inflation rate in May 2021 was 41 percent, up 2.1 percent from the previous month. The research also calls Rouhani’s government’s record-breaking liquidity and inflation of 41 percent the “boiling point of inflation.”
The creation of unruly money by banks
‘The creation of unruly money by banks, which has become a major component in Iran’s inflation:’ is another factor of inflation that occurs through banks.
“Banks create a lot of fiat money on a daily basis, of course, and because the country’s liquidity to increase continuously,” the state-run daily Vatan reported on 23 May. In fact, the creation of fiat money is the primary reason for Iran’s large increase in liquidity, which is a high amount when compared to other countries. The most significant loss as a result of banks’ actions is an increase in inflation. In fact, it is the creation of unruly money by banks that have caused Iran’s liquidity growth to always be far ahead of economic growth and to create an inflation giant.”