A protester opposing Egyptian President Mohamed Morsi shouts slogans in front of El-Thadiya presidential palace, June 30, 2013.
Amr Abdallah Dalsh / Courtesy Reuters

Egyptians have a lot to be upset about these days, and they are showing it. The one-year anniversary of Egyptian President Mohamed Morsi’s inauguration has brought with it major protests and counter protests, raising fears of renewed political violence. Underneath all the anger lies a basic fact: The Egyptian economy is in deep trouble.

Since former President Hosni Mubarak was ousted in 2011, the state’s revenue has decreased sharply. The business sector is in the doldrums, and investments have dried up as both domestic and foreign investors bide their time waiting for the political fog to lift. At the same time, the government’s expenditures are mounting. The climb is partly a result of salary increases that were granted to government workers since the uprising in an attempt to quell the unrest. More fundamentally, though, the costs of subsidies on food prices and, above all, energy continue to mount

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