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The answer to economic woes in Iran: The concepts of Zero Cost Economics

By       Message Farid Khavari       (Page 1 of 2 pages)     Permalink    (# of views)   1 comment

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The concepts of Zero Cost Economics are simple, yet they can serve the people of Iran in many ways, leading to permanent prosperity and economic security for everyone.

As Sheikh Sadi Shirazi, the famous Iranian poet said: "We must cry for a person, whose income is nineteen, and expenditure twenty!"

In every country of the world, costs of food, energy, housing, healthcare, transportation and everything else are rising faster than incomes. This is the result of short-sighted economic policies.

Achieving higher incomes and lower costs require economic policies that create more employment and income by working on products and services, which freeze costs, then reduce costs, and, where possible, eliminate costs.

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For example, two main costs of living are housing and energy. By making housing affordable with low-cost financing so that people can pay for a house in ten years, a family's cost of housing is frozen (for ten years) then eliminated (when their homes are paid for).

At the same time, massive employment is created by building homes for everyone.

When the home is designed for energy efficiency and equipped with a solar and wind energy system, the cost of energy is frozen, and after a few years it is eliminated.

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Meanwhile, further employment is created to provide the energy equipment.

After the home is paid for, the family's cost of living is permanently reduced. Over the years, the savings add up to a fortune sufficient for a comfortable (and early) retirement.

Food is another rising cost which can be reduced, even if it cannot be eliminated.

The simplest way to do this is to increase agricultural production, so there is more food to begin with. Whether adding modern equipment or increasing the size of flocks and herds, the investment will be repaid many times over by reducing the cost of food while creating more employment. Farmers prosper, the cost of food is reduced, and more employment is created.

Health care is one area where improving quality and availability of health care actually reduces costs. Of course, healthy people need less health care. But sooner or later, everyone needs health care, and overall the cost is lower if they receive the care sooner rather than later.

A detailed description of how to improve health care quality while reducing costs and other issues is found in the book Towards a Zero Cost Economics by Farid A. Khavari, Ph.D. The book is available as a free download at

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By remembering one simple monetary policy, prosperity and economic security can be achieved without inflation: Every Toman created by the banking system must correspond to a Toman of value created by the work of an Iranian using the concept of Zero Cost Economics.

The principles of Zero Cost Economics apply to virtually every area of economic activity.

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Farid A. Khavari, Ph.D., is a noted economist and independent candidate for Florida governor in 2014. He is the author of 10 books including Environomics: the Economics of Environmentally Safe Prosperity (1993) and Toward a Zero Cost Economy (more...)

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