Votto
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- Oct 31, 2012
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Can Iran's plan for a $7 monthly cash handout calm the streets?
Tehran’s plan to distribute cash handouts to nearly the entire population appears aimed at calming protests driven by relentless price increases. Whether it will work remains an open question.
Tehran’s plan to distribute cash handouts to nearly the entire population appears aimed at calming protests driven by relentless price increases. Whether it will work remains an open question.
Officials say the payments are meant to offset the elimination of a subsidized exchange rate previously used to import essential goods, a policy shift that has already pushed prices higher.
Under the plan, the government would issue monthly coupons worth one million tomans—about $7 at the open-market rate—to every Iranian.
Some economists have questioned whether the measure can achieve its stated aim.
In an editorial published on January 5, the daily Setareh Sobh described the policy as an “economic gamble,” warning that similar efforts in the past had failed to stabilize prices or restore public confidence.
The same can be asked in the US. Will Mamdani's "free things" help quell the pain of inflation, inflation that has all been caused by the United States government? Just the notion of handing out only $7 dollars drives home the plight of these people probably are literally starving to death.
Very sad, but is the US headed down the same road as giving free things away can only increase inflation.

