Purchasing Power Plummets: Expert Warns of Economic Strain Despite Market Abundance
Tehran, Iran – A prominent member of the Iranian Parliament has voiced concerns over the declining purchasing power of households, arguing that despite claims of market abundance, economic realities are pushing Iranian families to the brink. Ahmad Bigdeli, a representative in the Social Affairs Commission, stated that the perception of plentiful goods on shelves does not equate to widespread prosperity.
Disconnect Between Supply and Demand
“The abundance of goods in the market, as stated by the government, is in fact a direct result of decreased demand,” Bigdeli explained in an interview with Shana. He attributed this dip in demand to prevailing poverty and the depreciation of the national currency. “Without an increase in people’s purchasing power to match current prices, the presence of goods on shelves will not translate into improved living standards for the people.”
Critiques of Government Economic Policies
Bigdeli also levied criticism against the government’s approach to supporting businesses, particularly in the current economic climate. He argued that financial support decisions for production units lack thorough expert analysis, suggesting significant flaws in the economic team’s calculations.
“Decisions made regarding financial support for production units are not based on precise expertise and seem to indicate serious flaws in the calculations of the government’s economic team,” Bigdeli asserted. He pointed to the provision of loans at a 23% interest rate to workshops facing substantial operational costs as an example of counterproductive policy. “This is not support; it is undermining the very foundation of production.”
Rising Production Costs
The parliamentarian highlighted the overwhelming increase in the cost of raw materials, transportation, and energy as key drivers forcing workshops to consider closure, even when they are trying to retain their workforce. With raw material prices having quadrupled in some instances compared to previous months, small, high-interest loans are insufficient to alleviate the burden. Instead, they are reportedly increasing production costs by up to 23%, adding further pressure on manufacturing enterprises.
Calls for Strategic Solutions
Bigdeli urged the government to shift from what he described as “unprofessional and emotional” actions to more strategic solutions for sustaining production units. These include reducing production costs, securing raw materials at reasonable prices, and creating robust frameworks for product sales. He emphasized that any support lacking a comprehensive understanding of the entire production chain – from raw material procurement and packaging to distribution and sales – will ultimately inflate final product costs for consumers and lead to the failure of support initiatives.
Towards a Balanced Economic Approach
In conclusion, Bigdeli stressed the need for principled decisions that enable workshops to produce at logical costs and empower citizens to afford these products. He believes that a simultaneous focus on controlling expenses and providing practical support for both producers and consumers, rather than resorting to piecemeal measures, would have prevented the current market stagnation.
