Robert Naiman wrote: > Ironically, Iran has been reducing its fuel consumption subsidies, > something it has long wanted to do on economic grounds, under the > pressure of US-led sanctions. In fact, US sanctions gave them a > nationalist excuse to do what they wanted to do anyway. An interesting > case study in "Pareto improvement." > > Also interesting is that Iran had a careful plan for reducing the > subsidies in a way that would not cause widespread social unrest. Part > of it was replacing the subsidy by direct payments - just as classical > economics would suggest - and part of it was starting the curtailment > at the margin, so as to have maximum effect with minimum pain....
FWIW, a friend of mine from Iran suggests that the Ahmadinejad government's giving of direct payments to peasants and other poor people is a way of buying votes! -- Jim Devine / It's time to Occupy the New Year! _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
