Rent Based Capitalism Will Cause Inequity In Society

Tehran, Sept 16, IRNA – An economist believes that if trade capitalism is realized through import of consumer goods or through rent, the society will be led towards inequity. Ebrahim Razzaqi told IRNA that unfortunately during the past years capitalism in the country was not generally formed on the basis of production. He believes that in recent years capitalists mainly formed their economic activities on the basis of rent and were supported by governments in different ways. Razzaqi stressed that capital should be formed on the basis of production because capital accumulated through rent will evade from paying tax as well. He pointed to the luxury showoff by some rent capitalists and said under conditions that some households have become poorer due to certain economic decisions what does import of luxury cars mean while most gasoline is being used by upper classes in the society. In other words, he emphasized, subsidies the government pays in different sectors go to the pocket of those who possess greater instruments for using the support. Stressing that in many countries wealth and politics have been intermingled to strengthen each other, Razzaqi said the Iranian Constitution rejects accumulation of wealth and we have ignored this point in the past decades./end