Party vice president AK Numan Kurtulmuş made important statements about the economy on the TGRT live broadcast. In his speech, Kurtulmuş used the following statements: “The volatility of exchange rates is the cost of living, which affects all our citizens. The products we buy in the bazaar are expensive. On the one hand, we take all kinds of measures to eliminate volatility here and maintain order and, on the other hand, not harm the purchasing power of our citizens.
The extraordinary increase in the minimum wage, which was fixed at the beginning of the year, the direct support of the Treasury with the waiver of taxes it had collected and the subsidy of energy prices by 80 percent are among the issues that will increase purchasing power .
A TOUCH WILL BE MADE TO INCREASE BUYING POWER
One of them is the increase in income. In July, increasing the income of our retirees and employees, and working with the minimum wage are at the forefront of our ministry. Studies are being carried out, I hope that with the month of July there will be a touch that will increase the purchasing power of fixed income.
Support will be provided to ensure that our citizens are not crushed by inflation. Our ministry is working on all the details. An improvement in salaries, which will interest a large audience, will be made in July.
We want our citizens to know that the government is determined to take steps that will increase the purchasing power of the broadest masses, making the most of available opportunities.
A second increase in the minimum wage is being worked on. The ministry will share them with the public. Then President Erdogan will share. In his speech to the public after almost every government meeting, our Lord President shares the additional measure to somehow increase his purchasing power. We are mobilizing all the means at our disposal to increase the purchasing power of our citizens.
There is also work being done there. It’s a matter of time. There is no subject that is on the citizens’ agenda, that people have talked about in the market, so that it is not on the government’s agenda. The Ministry of Labor continues to work on this issue, and priorities are shared with the population when they arise.
One of the most fundamental problems of the world economy is massive dollarization. One of the factors affecting developing economies is the presence of dollars in the market. 65% of world trade is in dollars. Even in countries where the dollar has no effect, economies are under pressure from the dollar reserve currency.
What you call a dollar is a piece of paper. We call it $100 as face value, everyone respects it and the value comes out of that. The existence of the dollar has an impact on national economies, as trade is carried out on the reserve currency.
The fact that countries trade in their own national currencies is an important offer that will reduce dollarization. During the pandemic, the US printed a large amount of dollars. Now, the Fed is trying to withdraw the dollar it released through tightening policies. It is obvious that extreme flexibility in world markets will have an impact on developing countries like ours. We need to get rid of the dollarization issue. It is not possible to get rid of it completely, it must be minimized. We need to understand the use of TL and the commercial relations we make with other countries in the next steps, through our national currency.
IS THE NEW INSTRUMENT EXPECTED?
Perhaps, I think it is right for us to make purchases in our own currency and make the value of TL a valuable currency in international trade. Having a certain level of money has the advantage of increasing exports. In the past, TL was very valuable, 1 dollar was almost 1.20. Even the items we produced were imported from abroad. In the periods after 2013, Turkey moved away from this. He spurred the trend towards manufacturing and an export-based economy. I think this is important. The Turkish economy will provide this.
WILL WE GO BACK TO TRADITIONAL ECONOMIC POLICIES?
It is one of the policies scientifically discussed by the economy. The economy is actually a dynamic process. For decades, Turkey has accepted neoliberal economics as a unique economy in the western world. Especially in the USA and England, this economic model became popular. It is not a case that every economic model will work in exactly the same way over time. The capitalist system is a system that works well on wealth and cannot develop measures on narrowness. The neoliberal works well in times of plenty, but when the world economy has contracted since the early 2000s, it emerged that some measures must be taken in the model that some call classical economics.
Economists, who defended neoliberalism better, began to stand out when they saw that social assistance was lacking in this system. As conditions in the world and Turkey improved, no savings would be implemented until the apocalypse. Elongation and improvement can be seen in these applications. Turkey has been trending since 2013.
In line with the global economy, we need to be able to compete with our goods and services in global markets without weakening Turkey’s production power. Turkey has been going for the last 8-9 years. But conditions are changing. The pandemic did not exist. No one expected energy prices in the world economy to rise so much. It was predicted that rising oil above the $100 level would cause a global crisis. There were periods when it was much higher, now a certain balance is reached.
Even in developed countries like the USA, England and Europe, we saw that some products could not be supplied during the pandemic. These conditions do not mean that all the rules written in the books that we know of, which have been successful in the past, will apply by the end of the day. The economy is a dynamic unit. In no country in the world, economic decisions are not far from political decisions. The economy is not a barren field. You don’t talk about economics as if you were doing an experiment in a physics or chemistry lab. Behind every economic decision are political choices and decisions.
THE SCISSORS MINISTRY HAS AN EXPLANATION ABOUT PUBLIC SAVINGS. SHOULD WE EXPECT SAVINGS IN THE PUBLIC?
Of course, we are of the opinion that there are areas that require some additional savings that we might call public sector waste. The ministry will publish its statement after working on them.