Tuesday, February 10, 2009

Sepideh Shahverdi : Economic Problems

The effect of economic problem in Iran
Iran is a big country with a big population. Its economy is dependent on oil and natural gas. However, Iranians are suffering from several economic problems, especially after the eight _year war with Iraq. There are several effects of economic problems in Iran such as unemployment and inflation.
Unemployment is the most important effect of economic problems in Iran .There are
a lot of educated young people who look for a job but they donʼt have any chance so
it has caused poverty . If people donʼt have jobs, they donʼt have any money, so they have to live under the average .It could stop their children from continuing their studies, and it causes the reduce of the rate of education .Unemployment has increased the rate of crime, and it has made important contribution to crime; also, unemployed people have potential to do crime. On one hand they donʼt have any opportunity to have positive activities and on the other hand they need money to survive.
Inflation is considered as another effect of economic problems, so it caused a continuing increase in prices of goods and services . Because of inflation the power of currency in Iran reduced and also the value of Iranianʼs money compared with foreign exchanges reduced too . In additional inflation reduced the domestic product and it caused dependency on other countries , for inflation some producer and the owner of factories became bankrupt.
Government has to provide some job opportunities and also control the prices. They have to support self employers, and persuade unemployed people to run small businesses. They can support the producers by giving them loan and tax exemption to reduce the rate of unemployment and inflation.

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