Teaching Comparative Government and Politics

Thursday, April 21, 2016

Solving problems and hurting opponents

Sometimes it seems that resolving a political/economic problem can be satisfying if your political opponents suffer as a result.

Iranian Parliament Cancels Cash Subsidies to 24 Million People

Iran’s lame-duck Parliament approved a bill… canceling cash subsidies to 24 million Iranians…

Analysts said the action was a stick in the eye for Mr. Rouhani from the conservative-dominated Parliament, forcing him to figure out how to put the unpopular measure into effect.

However, with sagging oil prices cutting Iran’s national income, the International Monetary Fund and other groups have warned that Tehran will have to cut back the system of giving monthly cash payments to nearly all of its 80 million citizens or risk running huge deficits.

As such, the Parliament’s action places Mr. Rouhani in a difficult position, economists say. Canceling the subsidies is a critical part of any economic overhaul, something that Mr. Rouhani has promised to undertake. But the measure is likely to add to growing complaints over his handling of the economy…

Most urban Iranians say they do not need the payments, which are meager compared with their cost of living. But many people feel the monthly stipend is their fair share of the nation’s wealth…

Outside the larger urban areas, where life is much cheaper, the subsidies often support entire families…

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