Thread by @godthegrey

Recent remarks of Dr #Ahmadinejad has upset so many of his "wanna be" lefties supporters. They claim that he's retreating to neoclassical economy tactics which is indeed an unforgettable cardinal sin in their playbook. I am going to refute their fundamental premise in this thread

@Kharchangzade @AliAbutalebi @fresh_sadegh @AbdolrezaDavari
Let's start by reviewing Dr. #Ahmadinejad assertions.
He delivers his lecture series on the causes and roots of economic problems in Iran. He also suggests a handful of solutions to cure deep bleeding economy's wounds.

Third problem in his list, that set the hair of lefties on fire, was devoted to government inefficiencies and its outreach. Dr. #Ahmadinejad starts by listing gov responsibilities:
-Providing security
-Managing Foreign policy
-Setting standards
-Supervision and adjudication

Then, he specifically points out two sector as the most inefficient part of gov. business.
-Education
-and Healthcare
He follows, "Gov. is completely substituting people". Out of total gov workforce only 24%-27% are serving security purposes, while 58%-64% are providing

education and 12%-15% provides healthcare.
Then, the Fundamental question he raises is:
Why gov. collect benefit of oil exports and want to provide healthcare as well? give the benefit of oil exports to people and let them buy healthcare for themselves. Give them choice.

Gov. should only supervise and act as a referee with modern and up to date tools. The same applies to many parts of education sector.

"GOVERNMENT SHOULD BE MANAGED BY TAXES NOT BY SELLING OIL.
[He rightly says everybody agrees on this but executing it is a herculean task.]

IF WE WANT TO REDUCE OIL DEPENDENCY OF BUDGET, WE NEED TO GET RID OF UNNECESSARY GOVERNMENT OUTREACH. He explains, we should decrease this gov. outreach that is on the rise everyday. He goes even deeper, This is the very reason that our economy is fragile in the first place.

Gov.budget is dependent on oil which is decided in oil market that we have no control over it, This could damages sustainability and livelihood of our economy.
THIS IS INEFFICIENT
Well, in a world where logic prevails, it is extremely hard to argue with DR.#Ahmadinejad claims.

Let's see what critiques argue. Though they're not serious but just to make an example of the absurdity of their claims.

https://twitter.com/EskandarSadeghi/status/1049399665358229505

Here, after you find your way through the usual name calling nonsense some ill-funded claims emerges.

he says he [Dr. #Ahmadinejad] is advocating classic neoliberal talking points ...]
Look at the absurdity of this claim. It i likely that he doesn't know neoliberalism or he didn't get the point or is attacking for the sake of attack. I shall explain what a neoliberal would do.

She would PRIVATIZE THE OIL INDUSTRY. That's it. Dr. did not support for privatization of oil fields and industry. He advocated for privatization of benefits. Do you get the point that the discussion revolves around resource allocation? HOW IS NOT THAT CLEAR?
If you get this

point, the whole discussion on why privatize healthcare and edu goes right out of window because gov. is going to distribute the benefits anyway.
Concerned are granted when oil industry is privatized then the benefit is privatized too. absent that the argument is IRRELEVANT.

Example:
Assume that Iran is a company that produces oil and sell it. Then, distribute parts of the dividends (income from oil exports) through subsidies. Would you rather to receive the full dividends and manage your own money or you trust it with some fat greedy guys?

"Agency theory" is clearly on the side of Dr. This is the whole story. save the neoclassical, hidden evil Friedman for another time. It's completely irrelevant.
Hope this clears the air a bit though I doubt that the one who already formed his belief nothing could change it.

Final thoughts on this:
He is right that this is herculean task.Just look at the backlash from his zeal supporters and yet we are not even talking about actual rent seekers. Only god know the reaction of those that are deep in sweet deals coming out of this utter inefficiency.

Sorry for writing in English. I am a bit more convenient with that. I'll write a threat in Farsi If I had time.

Closure:
Apple rhymes with saddle but you ride the latter and eat the former.