Abdulkadir Özkan: "Wage hikes do not increase welfare level"

Abdulkadir Özkan: "Wage hikes do not increase welfare level"
Date: 4.4.2023 15:00

Milli Gazete columnist Abdulkadir Özkan writes on Turkey's economy. Here is the full article.

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If you look at the ruling wing, the country is developing rapidly. Every day, new big projects either come into play or they are given good news that they will do. Of course, something has been done. However, if what is done does not increase the welfare of our people, then there is something wrong with this business. Because the wage increases do not work.
 
It is possible to explain that this is due to insufficient production. Because price increases are always ahead of wage increases. Thus, the increases in the wages of retirees and employees take away the wage increases without going into pocket.
 
In fact, if the increases in wages, which are made twice a year, can be prevented, it is possible to make progress in the fight against poverty after a while. However, the increase in prices with the voicing that there will be an increase in the wages of retirees and employees takes away the increases in wages. In short, wage increases just like "for the sake of appearances". However, words do not fill your stomach.
 
In the meantime, the fact that the increase in pensions consists of raising the lower limit a little, inevitably confirms the result as if our people are equal in poverty. This should have allowed the wage earners to breathe easily, at least in these months, in the face of the fact that the minimum wage was increased to 8 thousand 500 liras and the minimum pension to 7 thousand 500 liras.
 
However, that cannot be said. However, there is a need for a collective improvement in pensions. Because while the wages of the least recipients are increased, the inability to prevent price increases takes away the hike, while those who receive pensions above the lower limit due to the increase in prices add to the list of the poor. Thus, increases that do not comfort our people come to the fore.
 
So what's the solution? First of all, the minimum wage and pensions should be raised above the hunger limit. If the monthly income of a large part of the workers and retirees in a country is below the hunger limit, there are increases that do not relieve the society.
 
By the way, there is no need to mention the poverty line exceeding 30 thousand liras. Because if the relevant authorities made the necessary research and announced how many employees and retirees in our country were paid above the poverty line, it would be possible to see that a large part of the society lived under the poverty line.
 
Because if 4 people work in a house, then that family will have an income above the poverty line. As such, it is stated that although the lowest pension has been increased to 7 thousand 500 liras, approximately 15 million retirees are struggling to make ends meet with this salary, while the number of people working with 8 thousand 500 liras is around 16 million.
 
In short, in order to reduce the number of low wage earners, first of all, inflation must be stopped. Because as long as the increase in prices cannot be stopped, an increase in wages will not work. Retirees and employees experience a vicious circle about wages. Despite the hikes, these increases do not make the lives of our people comfortable. It just adds a little more money to the market.
 
As a result, society is getting poorer, while a handful of happy minorities are getting richer. Let them get richer, but most of the society is constantly shifting from the middle income level to the lower income level. In other words, while the circle of poverty widens, the difference shifts to the rich. In short, the system works for the rich.

YEREL HABERLER

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