Many economists, though, say that even without the sanctions, Iran would still have big problems: a legacy of inflationary oil spending and budget-busting state subsidies of food, gasoline and other basic items that encouraged overconsumption and the steady erosion of the country’s industrial base. “Many fundaments of the economy of our country have been destroyed over the past years,” said Mr. Raghfar, the economist. “And now, slowly but surely, the chickens have come home to roost.”
