Posted on 12/25/2008 4:21:07 AM PST by Flavius
TEHRAN, Dec. 3 -- Gasoline? It's 36 cents a gallon. Laundry detergent? Fifty cents for a standard-size box. Milk? About 20 cents a quart. These prices are so low because Iran's government spends half its national budget to subsidize many of life's necessities. Not for long.
(Excerpt) Read more at washingtonpost.com ...
I think Iran is running out of oil money.
yes Russian weapons systems while cheap and robust, still cost a lot of money, when your supplying all of the worlds terrorists
They are also running out of oil to export. They have less than 10 years before there internal consumption will equal their total production. They are screwed. That's why they are looking for nukes to blackmail the West for help like N. Korea.
The Torch of Tyranny has passed from Ahmadinejad to Obama.
I’m not sure where the reporter got his prices, but I know his milk price was too low.
Under the Shah, the average individual annual income in Iran, rose from about (USD)$150/yr to $2400/yr by 1978, when he was forced to leave.
Since Khomeini’s takeover 30 yrs ago, the annual income has remained almost unchanged. Notice in the article that Mr. & Mrs. Vatandoust are described as middle class, and together they bring home $500/month.
Here are some more recent prices: (these are prices outside Tehran, where the prices tend to be lower than Tehran)
kilo rice (which is a staple)- $4.00
kilo of beef - $8.00
kilo chicken - $3.00
kilo eggs - $2.00
Quart milk - $1.10 (if you but from a farmer or farmer’s market, you can pay 1/2 that)
This article conforms what I have believed, subsidies are distorting so many prices in these countries in the middle east and far east. It can´t stand forever, but on the other hand even though I know these kinds of changes are neccasery for these countries I hope ‘ihmanutjob’ or whats his name is not succesful in this.
But these subsidies are keeping the prices of our oil f.e. high by increasing consumption in these countries. His last changes in the oil subsidies are exactly like what I would have done, allotting everyone a quota of continuing cheap oil and letting the rest of it be decided on the market. Thus you can little by little reduce the quota and who gets it without causing to much of political upheaval.
F.e. did the oil price fall a little during the bubble (before the current big drop) when china and some other far east countries decided to make the national price a little higher. Having these subsidises it is no wonder how many are buying cars in China and why they are so fast increasing their road system.
The same with food prices, if farmers would stop getting subsidises according to how much they produce they would be better off when production would drop. If it has to cost that they are still subsidesed for some time through other means it is better than the current system.
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