Tuesday
Jun212011
Iran Feature: The Danger of the Economic Slump (Harris)
Tuesday, June 21, 2011 at 19:19
Iran's biggest economic problem is the growing production slump at its factories and workshops. For both workers and the business elite, Iran's domestic industrial troubles are far more pressing--and generating far more public anxiety --- than international sanctions.
The biggest danger for Iran in 2011 is the combination of higher unemployment and inflation produced by government inaction, unintended consequences of subsidy reform, and dwindling foreign capital caused by banking sanctions.