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Why wasn't the minimum wage increased significantly?

Why wasn't the minimum wage increased significantly?

25.12.2024 10:22

Professor Dr. Nuri Semih Öz, a faculty member at Ankara University, was a guest of presenter Abdurrahman Yazıcı on Haberler.com. He explained the rationale behind not significantly increasing the minimum wage for the year 2025. Professor Dr. Öz emphasized the importance of combating inflation.

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Professor Dr. Nuri Semih Öz, a faculty member at Ankara University, was a guest of presenter Abdurrahman Yazıcı on Haberler.com. Stating that Turkey is fighting against inflation, Professor Dr. Öz said that inflation should be taken into account in minimum wage increases.

"MINIMUM WAGE SHOULD NOT BE INCREASED TOO MUCH"

"In the fight against inflation, the minimum wage should not increase too much because if the minimum wage increases, costs will rise; if costs rise, this will lead to price increases. This means additional inflation. Therefore, this spiral needs to be broken at some point. This means that the burden of inflation should remain on those with fixed incomes. If inflation is kept as low as possible, anti-inflation policies will be successful, but on the other hand, the logic of the minimum wage is that individuals should have an income that allows them to live with dignity. This needs to be ensured, but if you button a shirt incorrectly, the subsequent buttons will also be wrong. The current situation in Turkey is like this. As a result of interest rate policies, Turkey is facing inflation, and therefore, if it wants to fight against inflation, unfortunately, like in the 1980s and 1990s, this burden rests on those with fixed incomes. This is not right. Turkey is facing what we call twin deficits; on one hand, there is a budget deficit, and on the other hand, there is a current account deficit."



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