Why Iran Needs a War Economy

Photo Source Blondinrikard Fröberg | CC BY 2.0

Faced with the relentless U.S. economic war, Iran needs a war economy. Indeed, the plan of a war economy should not be very difficult for Iran to implement since it has a relatively successful experience of carrying out such a plan: during the 8-year war with Saddam Hussein’s Iraq, Iran embarked on an extensive state-guided economic management that effectively provided for both its military and civilian needs. Because of the revolutionary atmosphere of the time, and because of the corresponding spirit of generosity, selflessness, social cohesion, and national unity the country was able to effectively withstand both the military and economic wars launched against its territory and its people. Despite the extremely costly war, both in terms of blood and treasure, and despite the fact that Iran’s total output, or national income, at the time was only a fraction of what it is today, its people did not experience nearly as much economic hardship as they do today. Why? Mainly because its national resources were at the time distributed relatively equitably—unlike today where those resources are monopolized and plundered by a clique of financial oligarchs and economic mafias.

To embark on a war-economy route, Iran needs, first and foremost, to revive the real (value-producing) sector of its economy, that is, manufacturing and agricultural activities. These real-value and employment generating activities, which are the…

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