Cutting the Cord, Cutting Livelihoods: The Economic Toll of Internet Shutdowns in Iran

Internet shutdowns have emerged as a major threat to economic resilience, particularly in countries where digital platforms support a substantial share of employment and commerce. This letter highlights the economic consequences of internet disruptions in Iran by synthesizing recent evidence on financial losses and their impact on digital livelihoods. Although it is difficult to quantify precisely the economic losses, available evidence indicates that internet disruptions impose a heavy economic burden, particularly on small online businesses, freelancers, ride-hailing drivers, digital marketers, and other economic actors who rely on uninterrupted internet access for their operations. Beyond immediate income losses, repeated shutdowns undermine consumer confidence, reduce business productivity, disrupt supply chains, and accelerate the migration of skilled digital workers. To mitigate these harms, the authors propose mandatory economic impact assessments before prolonged internet restrictions and the establishment of a compensation mechanism for affected digital workers. Internet shutdowns should be recognized not only as technological or political measures but also as policies with profound economic and social consequences.