The economic crisis behind protests in Iran: From paying for cooking oil in installments to sleeping on rooftops
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The economic crisis behind protests in Iran: From paying for cooking oil in installments to sleeping on rooftops
"The protests over the past two weeks in Iran highlight a deep and complex structural unrest, in which economic demands represent only the tip of the iceberg. Although the demonstrations began in Tehran's Grand Bazaar, the movement stems from much broader causes. Economic factors have always been present in the background of social mobilizations, and this time they have become the main driving force."
"It is no coincidence that the first spark occurred on December28 in the commercial heart of the capital and quickly spread to numerous cities across the country, reflecting a widespread conviction that the current system is irreformable. According to official statistics, over the past eight years, purchasing power has fallen by more than 90%, and the U.S. dollar exchange rate on the open market has risen by 3,300%."
"Youth unemployment stands at 19.7%, and a significant portion of those who work do so under precarious conditions. As a result, the middle class, with education, skills, and expectations comparable to those of the global middle class, has been pushed below the poverty line and has lost any prospect of progress. Chronic inflation, officially around 50%, has steadily eroded the social status of broad segments of the population."
Protests originated in Tehran's Grand Bazaar and quickly spread nationwide, reflecting deep structural unrest beyond immediate demands. Severe economic decline over eight years has cut purchasing power by over 90% while the dollar rose roughly 3,300% on the open market, prompting informal use of the toman in official contexts. Youth unemployment is 19.7%, many jobs are precarious, and the middle class has been pushed below the poverty line with little prospect for advancement. Chronic inflation near 50% erodes social status across broad populations. A 67% gasoline price hike and a budget proposing higher taxes plus large allocations to religious institutions and security forces ignited demonstrations.
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