From: manizh@src.umd.edu (Reza Shahidi)
Subject: Re: How the government can help.
Organization: EE Dept, University of Maryland
Date: Wed, 22 Jul 1992 18:05:01 GMT

In article <sehari.711665601@selma.ecss.iastate.edu> sehari@iastate.edu (Babak Sehari) writes:
>
>
>As you suggested, it is good idea that we cut the subsidies and pay money
>directly to people.  However, in order to eliminate the problem of creating
>welfare kings and queens; the suplimentory income should be divided as
>followings:
>
>-- Group I. the handicap people who can not work, should receive an amount that
>           could support them completely.
>
>-- Group II. Low income people whose salary is under certain level.  These
>             people should get an small amount of money to help them a little
>             bit.
>-- Group III. Unemployed people should receive some money which should be less
>              than group II. This money should be very low to make them look 
>              for a job.
>
>All such Monetary help for the low income people, should be stopped if a person
>found to use drag of any  kind.  What other suggestions do you have?  Is there
>a better way to distribute such help?
>
>                   With highest regards,
>                        Babak   Sehari.
>
>One reason for high population growth might have been the idea that more kids 
>means more governmental help.  Is there an idea, How to eliminate this 
>problem?

Such remarks as in the above can come out of people who have never experienced
poverty and do not have enough insight to understand it. Economical
problems are not as simplistic as some want to believe. Poverty is
a very stable condition which cannot be resolved by poor people. They
do not have resources to pull themselves out of it. To cut unemployment
benefits (that is if there is any) to motivate a poor, uneducated, 
skill-less person to look for non-existing jobs is counter-productive.
Any cut in governmental assistant should accompany with sufficient
growth in economy and retraining for the unemployed workforce. If 
people have choices, they always make the best one. Do not cut their
life-line without giving them new lines.

The second point, I wanted to make is about the subsidies. Although I
agree with Brad on their side-effects, I do not agree with cutting
them in Iran. This is a hole that government dug for itself. Right
now, it is not just the goods that are subsidized in Iran, the workforce
is working for subsidized wages as well. Subsidies in Iran are there
for a reason. No government employee could live in Iran without
those subsidies. If such subsidies are to be eliminated, the salaries
must be increased as well. Can the government afford it? The answer
is no. If they could, they could have supported subsidies as well.
Jump in salaries causes inflation as well. So, I have no answer but
foriegn investment and job growth in private sector.

Of course, my definition of private sector is not bazaries! Bazaries
in Iran are not productive. They move the merchandise from one location
to another and make a lot of money. I am talking about the productive
sector which is very small. Another thing that may help is the elimination of
monopoly (governmental or private) on all goods and  elimination
of Hajis who do nothing but moving the merchandise from one storage
to another. This may cause a smaller price tag on consumer goods and
give the large population who live on fixed income a break.

In closing, the economical problems that Iranians face are beyond
a simple solution. It will take decades to correct it. I hope that
the government is seeking the experts' opinion on these matters 
with a close look at our internal economical structure. To copy
some other country's plan is not going to work. These problems
are not created over night and they will not be solved over night!

Best Regards,
-Reza
Newsgroups: soc.culture.iranian