Rewritten Title: Policy and Poverty: A Clash Over Iran’s Official Cost-of-Living Figures
Article:
A recent government announcement on the poverty line has ignited a significant debate among economic observers and labor activists in Iran, centering on the methodology used to gauge economic hardship and its real-world impact on citizens, particularly retirees and minimum-wage workers.
The Disputed Figure
The government spokesperson set the official poverty line for a single individual in the current Iranian year at 6,128,000 tomans. However, this figure has been met with skepticism. Critics argue the core issue is not just the number itself, but the basis of its calculation. A central question being raised is whether this threshold accurately reflects a realistic household basket of goods, inclusive of essential costs such as housing, healthcare, education, and transportation.
A Mask for Reality?
Labor activists have warned that the announced figure fails to capture the true cost of living. They contend it risks “erasing the face of poverty through statistical manipulation,” potentially leading to a large segment of the population—especially minimum-wage workers and Social Security retirees—being statistically invisible despite living in de facto poverty.
A Call for Foundational Solutions
Echoing this sentiment, Hossein Kamali, Secretary-General of the Islamic Labor Party and former Minister of Labor, emphasized that poverty cannot be eliminated by altering measurement tools or lowering the poverty line. In an interview, he stated, “The solution lies in improving production, increasing productivity, and growing incomes, not playing with numbers and statistics.” He advocated for fundamental economic improvements as the only sustainable path to poverty alleviation.
The Retiree Reality Check
The practical implications of the government’s figure become starkly clear when applied to retirees. Based on the 6.128 million toman per-person line, a family of four would require nearly 24 million tomans monthly to stay above the poverty threshold. This reveals a troubling reality: approximately 60% of Social Security retirees, who currently receive a minimum pension of around 12 million tomans, live below the officially defined poverty line.
The Broader Economic Picture
The situation extends beyond retirees. Many minimum-wage workers, despite nominal salary increases, remain below this line. Kamali highlighted the disproportionate cost of housing, noting that for many workers, up to 70% of their income is consumed by rent alone—a critical factor that may not be fully accounted for in the official calculation.
A Plea for Transparency and Realism
The debate ultimately calls for greater transparency in how the poverty line is determined. Critics urge the government to clearly outline the criteria and components of the “basket of goods” used in its calculations. Without a methodology that reflects actual living costs, there is a concern that statistical adjustments are creating a superficial impression of improvement while the foundational economic challenges remain unaddressed. As Kamali concluded, solving poverty requires structural and sustainable economic changes, not numerical maneuvers.