Iran’s Middle Class Falls Fast and Hard

TEHRAN — Less than a year ago, he was running a thriving computer accessories business, driving a new car and renting a comfortable two- bedroom apartment in the center of Tehran. But in November, Kaveh Taymouri found himself riding a rusty motorcycle on his hourlong commute to his family’s new lodgings, a 45-square-meter apartment in one of the city’s worst neighborhoods, next to its sprawling cemetery.

When he arrived home one recent night at 10:30 from his new job at an arcade, there was no food on the stove. The sandwich he had for lunch would have to do.

Nevertheless, his wife and former business partner, Reihaneh, said she thought his mood was improving. “At least he has stopped screaming in his sleep,” she said.

Before their “downfall,” as they call it, the Taymouris were the model middle- class Iranian family, prosperous college- educated business owners who made enough money to save for a down payment on their own home. Now, they are a model for a different sort: the millions of middle- class Iranians who almost overnight have seen their lives shrink, dragged down by economic forces beyond their control.

Iran’s economy is in a shambles, savaged by years of mismanagement and renewed economic sanctions.

The government has expanded the money supply by more than 30 percent annually for more than a decade, using the cash to cover budget deficits and other expenses.

Inflation is now running at an annual rate of 35 percent, compared with below 10 percent a year ago, according to official figures.

President Donald J. Trump’s decision to leave the nuclear deal, known formally as the Joint Comprehensive Plan of Action, or J.C.P.O. A., and to reimpose harsh economic sanctions prompted the other major economic disaster to befall Iran: a collapse in its currency, said Djavad Salehi-Isfahani, a professor of economics at Virginia Tech University. The rial lost about 70 percent against the dollar before strengthening recently, but its rates are still fluctuating.

“The withdrawal busted the ex- pectations for an economic boom created by the J.C.P.O. A. and Iran’s return to the global economy, which was expected to boost oil exports and foreign investment,” he said. “The reversal caused people to convert their rials into other assets, mainly dollars and gold.”

By raising the cost of imports, the currency collapse has reinforced the inflationary surge and decimated small businesses that, like the Taymouris’, rely on imported goods.

Some place the blame for the economic troubles squarely on Mr. Trump.

“It’s really because of Trump,” said Nasim Marashi, the 29-yearold author of a best- selling book, “Autumn Is the Last Season.” The book has had 35 print runs in four years.

Iran, with a population of about 80 million, has long had a large and

Mismanagement and sanctions lead to economic woes.

thriving middle class, earning an average of $700 a month in local currency, according to government officials.

Not all were hit as hard as the Taymouris, whose business was vulnerable to the currency collapse. But Abbas Torkan, a former adviser to President Hassan Rouhani, said the middle class had shrunk by 50 percent.

The difficult times have meant a sudden lifestyle change for many.

Roya l t y checks f or Ms. Marashi’s book dropped from 120 million rials a month to 20 million rials, she said. “Books aren’t a necessity.”

And in a country that still puts debtors in jail, the Taymouris had no choice but to make good on their debts. They sold the car, their furniture and their carpets.

“We don’t like it here,” Mr. Taymouri said, gesturing to the cemetery, one of the largest in the world. “We had been planning to move uptown, not next to the dead.”