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Turkey Lifts Minimum Wage by 49% for 2024 as Inflation Soars

16 points by mfiguiere 3y ago

alephnerd 3y ago
With the interest rate hike and this, hopefully the Turkish economy can stabilize. It looks like the adults are finally back in the room [0]. It's a stunning reversal for a country that throughout the 2000s and barely 10 years ago was an economic miracle similar to China in the 2010s [1][2][3]. It was the same story with Mexico and Brazil in the 2000s and Thailand in the 1990s. [0] - https://www.reuters.com/world/middle-east/turkey-downgrade-economic-view-path-policy-orthodoxy-2023-09-06/ https://www.reuters.com/world/middle-east/turkey-downgrade-e... [1] - https://en.m.wikipedia.org/wiki/Turkish_economic_boom_of_the_2000s https://en.m.wikipedia.org/wiki/Turkish_economic_boom_of_the... [2] - https://www.investopedia.com/terms/a/anatolian-tigers.asp https://www.investopedia.com/terms/a/anatolian-tigers.asp [3] - https://www.project-syndicate.org/commentary/inside-the-turkish-economic-miracle-by-jeffrey-d--sachs?barrier=accesspaylog https://www.project-syndicate.org/commentary/inside-the-turk...
- cyanydeez 3y ago
  this is just an object offset to rate hikes. prior to this, Erdogan was of the belief that raising interest rates caused inflation which is absolutely not how anyone economically minded thinks. America s fed also thinks unemployment is inversely related to inflation suggesting this act might be trying to increase unemployment. overall, given turkeys unusual economic beliefs, it's unlikely this will be the last unusual lever to stabilize. I really doubt Erdogan has changed his ego or beliefs and that this signals a return to economic prudence.
  - alephnerd 3y ago
    > Erdogan was of the belief that raising interest rates caused inflation As I mentioned before, that was an excuse he used because his family has a controlling stake in the construction industry in Turkiye, not Islamic beliefs. Low interest rates help offset the massive construction bill racked up in the 2000s and early 2010s He's been in power in 2004 btw. He followed through on implementing the IMF reform plan that made Turkiye a country on the precipice of becoming a developed country, and then also exacerbated the current economic crisis From the looks of it, the AKP is going back to using the IMF playbook used to make it an Anatolian Tiger in the 2000s.

16 points by mfiguiere 3y ago

With the interest rate hike and this, hopefully the Turkish economy can stabilize. It looks like the adults are finally back in the room [0]. It's a stunning reversal for a country that throughout the 2000s and barely 10 years ago was an economic miracle similar to China in the 2010s [1][2][3]. It was the same story with Mexico and Brazil in the 2000s and Thailand in the 1990s. [0] - https://www.reuters.com/world/middle-east/turkey-downgrade-economic-view-path-policy-orthodoxy-2023-09-06/ https://www.reuters.com/world/middle-east/turkey-downgrade-e... [1] - https://en.m.wikipedia.org/wiki/Turkish_economic_boom_of_the_2000s https://en.m.wikipedia.org/wiki/Turkish_economic_boom_of_the... [2] - https://www.investopedia.com/terms/a/anatolian-tigers.asp https://www.investopedia.com/terms/a/anatolian-tigers.asp [3] - https://www.project-syndicate.org/commentary/inside-the-turkish-economic-miracle-by-jeffrey-d--sachs?barrier=accesspaylog https://www.project-syndicate.org/commentary/inside-the-turk...

cyanydeez 3y ago
this is just an object offset to rate hikes. prior to this, Erdogan was of the belief that raising interest rates caused inflation which is absolutely not how anyone economically minded thinks. America s fed also thinks unemployment is inversely related to inflation suggesting this act might be trying to increase unemployment. overall, given turkeys unusual economic beliefs, it's unlikely this will be the last unusual lever to stabilize. I really doubt Erdogan has changed his ego or beliefs and that this signals a return to economic prudence.
- alephnerd 3y ago
  > Erdogan was of the belief that raising interest rates caused inflation As I mentioned before, that was an excuse he used because his family has a controlling stake in the construction industry in Turkiye, not Islamic beliefs. Low interest rates help offset the massive construction bill racked up in the 2000s and early 2010s He's been in power in 2004 btw. He followed through on implementing the IMF reform plan that made Turkiye a country on the precipice of becoming a developed country, and then also exacerbated the current economic crisis From the looks of it, the AKP is going back to using the IMF playbook used to make it an Anatolian Tiger in the 2000s.