Economics 101 for Donkeys

Iran depends on the tried and true method of pointing its finger at the United States as the source of all evil in the world in order to deflect internal dissent. However, the essay below draws attention to how Iran has permitted itself to become dependent on other nations for both gasoline production and its own food supply. From Iran Press News:

Preparing for War and Heading Towards an Economic Crisis

Amir Taheri
Asharq Alawsat

He had promised to bring the oil income to every family’s dinner table, showing that the Khomeinist revolution could offer prosperity while pursuing a messianic foreign policy. Later this month, however, President Mahmoud Ahmadinejad of the Islamic Republic will introduce a gasoline-rationing scheme, the first of a series of austerity measures his administration has already adopted.
The rationing scheme will allow every Iranian driver two gallons of gasoline each day at the subsidy’s price of 40 US cents. The measure is certain to create a black market, with influential businessmen-mullahs and their allies in the Islamic Revolutionary Guard Corps (IRCG) set to make huge illicit profits.
The rationing has become necessary because the Islamic Republic, the world’s fourth largest exporter of crude oil, spends almost half of its oil revenues importing more than 40 per cent of the refined petroleum products it needs.
How did Iran get into this rather strange situation?
It all started with the late Ayatollah Khomeini declaring at the start of the revolution that what mattered was Islam and not the economy. In a notorious off-the-cuff comment, he dismissed the concerns of his first prime minister, Mehdi Bazargan, about the economy by simply noting that “Economics is for donkeys!” Read the balance of the essay here:

One Response to “Economics 101 for Donkeys”

  1. Only in Iran « Paleo Lithics Says:

    […] This is certainly the perfect recipe for domestic unrest and runaway inflation. But then economics in the Islamic Republic of Iran is for donkeys. […]

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