Wednesday, February 06, 2008

Economics vs jokes!!

I don't know about you, but, I am beginning to give up reading the views of my fellow Iranians about econoimc issues. These are becoming increasingly more difficult to digest and understand. Saeed Lylaz claims that in the coming year, imports into Iran would increase unemployment by 6.5 million! Yes you read it fine, 6.5 million! It is not clear to me whether this "prediction" is based on his own research or on research done by others. He says that for every $1 billion imports, unemployment would rise by 100,000, but, does not say, how, or why? Or who says this! For the sake of argument, if imports consist of raw materials for Iranian industries, why should this relationship be valid? Alternatively, he should be able to show that everything which is being imported, is actually replacing domestic production. On the other hand, if you divid the economy into traded and not traded sectors, clearly the untraded sector is unlikely to be affected by imports as suggested by Lylaz and further, I am not even sure, if 6.5 million are working in the traded sector in Iran to be made redundant now! So the puzzle continues...
Setting these points aside, if his claims are to be taken seriously, there must be massive closures in Iran. Is this happening? I am not sure. There are many problems at home, and there is no point in denying them. But, can we turn the innocent subject of economics into a joke, as he seems to have done here? Or because we disagree with President Ahamdi Nejad, are we allowed to twist facts in this way. I don't think so. What do you think?
I hope that if anyone in Iran read these lines, would help me out. God! please help! I am getting more and more confused.

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