Abdülkadir Özkan: "Wage increases don't work until the prices fall"

Abdülkadir Özkan: "Wage increases dont work until the prices fall"
Date: 11.5.2023 17:00

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

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The economy has reached such a dead end that the hikes in the wages of workers and retirees soon lose the meaning. In this respect, although wage increases that were once a year were increased to two, they are melting away. As such, of course, wage hikes do not bring a permanent solution, even though they give the workers and retirees a breather for a short time.
 
In this respect, if the market is desired to be regulated, it seems imperative that those who want to raise the products they sell should not make a raise as they wish. For this, prices need to be brought under control before the market is completely upset.
 
For example, the high increases in rent and housing prices in our country put the country in a bottleneck. However, it should be seen that our country could face such a high rent and housing prices, and accordingly, legal measures had to be taken into action. The same was true for automobile prices.
 
For example, a second-hand car, which was bought for 23 thousand liras 8 years ago, is sold for 200-250 thousand liras today, even though it is 17 years old. If it finds customers beyond being sold, I think you don't need to be an economist to see that there is something wrong with this business. There are laws in almost every field. I don't think that there is a healthy explanation for remembering legal practices after they turn a blind eye to those who break the law for a long time and dominate the market.
 
For example, after the excessive increase in automobile prices became more disturbing to the society, it was announced by the relevant authorities that those who sold the automobile at high prices by showing it as missing, would be fined up to 4.5 million liras. In addition, it is stated in the statement that not only will be fined, but also such hoarders will be disclosed to the public.
 
In short, there should be an explanation for why it was waited for so many years, even though the penalties could be implemented with the change in the regulation that was implemented overnight. Who profited from this? How did a house that was sold for 100-150 thousand liras, especially in rent and housing prices, started to be sold for 500-600 thousand liras, or even millions?
 
Since this country is not an unattended, derelict country, and since the duty of the governments is to protect our people from market fraudsters, the laws were not implemented. Let alone the legal basis of the people to be taken for the implementation of the law, why weren't the necessary steps taken?
 
I don't mean to blame anyone. Isn't it a belated decision that after the society suffered a great injustice due to the laws that were not implemented in time, for example, in the statements made, the dealers who do not sell even though they have new cars in stock and demand high prices will be fined up to 4.5 million liras?
 
The change in the regulation to punish those who abused our people for months was made overnight and announced to the public the next day.
 
So, while it is possible to punish those who stockpile with a regulation change, why hasn't this way been used for years? The robbery of society was tolerated for a long time. Does the same apply to rent? However, doesn't it make those responsible for taking such a slow action to prevent some dirty games played in the market also guilty?
 
For example, a similar practice was applied to market chains, and it was announced that fines amounting to billions were issued. Didn't those practices have a legal basis? The duty of the governments is not to take action after the society suffers great financial losses, but to take the necessary measures before a crisis occurs in the market.
 
For example, the housing bottleneck in this country could not have come about overnight, if developments were followed carefully months or even years ago, the footsteps of such extreme increases should have been heard. However, we do not take the necessary measures without painful events, and after disasters, things that should have been done but not done before are remembered.
 
Our country and our people suffer greatly from this. Because if the rental prices have reached the minimum wage level, no matter how much you increase the wages, it will not be possible for the people with low and fixed incomes to attain prosperity. For this, first of all, it is seen that the prices must be lowered and inflation must be reduced.

YEREL HABERLER

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