Iran’s economy has been mired in persistent turmoil, with inflation officially recorded at 45.3 percent and living costs rising sharply across food, housing, and essential services. While the government often blames external pressures, evidence suggests the core issues stem from internal governance failures and long-standing political decisions that have undermined economic stability. n nFormer Planning and Budget Organization head Masoud Roghani Zanjani has pointed out that economic deterioration is not due to international sanctions but rather the dominance of ideological over economic priorities. He argues that conventional remedies no longer apply because structural flaws are deeply embedded in policy-making, where national expansion and internal control take precedence over public welfare. n nA major contributor to inflation is the unchecked expansion of money supply driven by government spending and borrowing. Successive administrations have bypassed sound fiscal practices, relying on central bank financing and bond issuance to state-owned banks. This has flooded the system with liquidity while starving private enterprises of capital, creating a cycle of dependency and inefficiency. As a result, short-term relief measures like food subsidies fail to address fundamental pressures on household budgets. n nOver the past two decades, the proliferation of state-backed institutions has fostered corruption and bureaucratic bloat. These bodies often serve as vehicles for elite enrichment rather than public service, obstructing reform and distorting market dynamics. Attempts to crack down on economic misconduct—such as public trials or executions of alleged financial offenders—have done little to restore trust, especially as gold and foreign exchange rates continue to climb. n nAlthough sanctions are frequently cited as the primary cause of hardship, they are better understood as a consequence of Iran’s geopolitical posture. Its nuclear program, regional military involvement, and breaches of international agreements have led to isolation. Countries like Japan and Turkey have curtailed trade not solely due to U.S. pressure but based on compliance with global standards. Meanwhile, domestic agencies including the Ministry of Economy and Central Bank have failed to prevent profiteering during periods of volatility. n nThe rial has plummeted, exceeding one million per U.S. dollar, and currency exchange offices have removed rate displays, signaling a collapse in confidence. Citizens are increasingly turning to gold, digital assets, and foreign cash as hedges against further devaluation. With unemployment exceeding 20 percent, inflation near 35 percent, and more than 18 percent of the population below the poverty line, economic distress is fueling broader social unrest. n nThe root of the problem lies not in a shortage of technical solutions but in the absence of political will to implement them. The current leadership continues to prioritize ideological control and regional influence over economic recovery. Without systemic change—potentially through replacement of the existing governance structure—Iran risks remaining locked in a cycle of decline. n— news from National Council of Resistance of Iran – NCRI
— News Original —nIran’s Economic Collapse Is Fueled by the Regime’s Political Choices, Not SanctionsnThree-minute read n nIn recent decades, Iran’s economy has turned into a battlefield of chronic crises, undermining both the livelihood of millions and the very structure of its economic system. Official reports cite inflation at 45.3 percent, yet daily life in Iran—marked by skyrocketing food prices, soaring rents, and shrinking family budgets—reveals a reality far worse than statistics suggest. n nMasoud Roghani Zanjani, former head of the Planning and Budget Organization, recently admitted that Iran’s economic disaster is rooted not in external factors but in the dominance of politics over economics. He noted that the country’s economy has reached a point where traditional solutions no longer work because the problems stem from political and ideological decisions. His remarks expose a fundamental truth: the regime’s priorities—regional expansionism and repression—have consistently taken precedence over the welfare of its citizens. n nInflation and Mismanagement: A Self-Inflicted Crisis n nThe main driver of Iran’s soaring inflation is uncontrolled liquidity growth caused by the government itself. Successive administrations, before and after 1979, have fueled inflation by ignoring basic economic principles. Today, the regime’s reckless borrowing and money printing have replaced sound fiscal management, pushing inflation from manageable levels into chaos. n nRoghani Zanjani emphasized that the government continues to carry unsustainable burdens while lacking the resources to finance them. This vicious cycle—created by the regime’s populist and short-term policies—has rendered stopgap measures like food coupons meaningless. Temporary programs cannot offset the crushing costs of rent, transportation, healthcare, and education. n nCorruption and Institutional Decay n nThe unchecked growth of unnecessary institutions since the early 2000s has created a web of inefficiency and corruption. These entities, serving as financial havens for regime insiders, block any meaningful reform. The government’s forced sale of bonds to state banks has further weakened the financial system, draining liquidity from the private sector. n nDecades of failed policies—from price controls and public punishments to theatrical executions of so-called “economic criminals”—have only deepened public distrust. Today, the price of gold and currency has surpassed levels seen during previous “anti-corruption” campaigns, exposing the futility of the regime’s approach. n nSanctions: A Consequence, Not the Cause n nWhile the regime tries to attribute the crisis to sanctions, the true origin lies in the regime’s own actions. The regime’s repeated violations of international agreements, its nuclear defiance, and its financing of proxy wars have all invited global isolation. As a result, sanctions are not the cause but a symptom of a deeper political disease. n nThe regime’s refusal to comply with international norms has provided other nations—such as Japan and Turkey—with legitimate grounds to restrict trade with Iran. Meanwhile, internal mismanagement by the Ministry of Economy and the Central Bank has allowed profiteers to exploit market volatility, further eroding public trust. n nCollapse of the Rial and the Erosion of Public Confidence n nIran’s currency has now fallen to historic lows, with the dollar surpassing one million rials. Currency exchanges have turned off their signs, symbolizing the collapse of public confidence in the regime’s ability to govern. The rush to buy gold, foreign currency, and cryptocurrency reflects widespread distrust and fear of further collapse. n nEconomic instability has become both a psychological and social crisis. With unemployment above 20 percent, inflation near 35 percent, and over 18 percent of Iranians living in poverty, the country faces a dangerous convergence of economic and political breakdown. n nA Regime Unwilling to Change n nIran’s crisis is not caused by a lack of economic tools, but by a lack of will. The ruling theocracy continues to prioritize repression and regional influence over domestic stability. The ongoing collapse is the product of decades of corruption, ideological extremism, and structural decay within the mullahs’ rule. n nWithout a fundamental change—which will only happen by overthrowing the regime and replacing it with a state that prioritizes the welfare of the people as opposed to maintaining its corrupt rule—Iran will remain trapped in a downward spiral.