Recently, foreign currency is coming again, the central bank We are living in a period when optimistic economic news such as reserves are relieved. As a matter of fact, since the period when 128 billion dollars was lost, these news have never been missing from the agenda and will not be until the elections.
The reason is very clear…
With the stingy interest approach applied in addition to the melted reserves, inflation reached an incredible rate with the effect of global factors, and this upset all financial and real production planning. This process will have an increasing effect on social suffering for a longer period of time.
As it is thought, there has not been a positive structural development in the labor market, but there has been an increase in employment, subject to low wages, created by the additional import demand for our products after Covid-19. In other words, it is clear that we will face unemployment data that will give us a headache, as the negative effect of the pandemic ends in the real markets and the demand for additional imports shifts to other countries.
It is not easy to synthesize the developments in the labor market in economies where the real purchasing power has not increased. This situation is even more different in our country, which is struggling with high inflation. The average wage is still an adjustment based on misleading inflation data In today’s world, when people are stuck with the minimum wage, it would be one of the biggest mistakes to think of employment as the number of people.
LABOR MARKET STEALS FROM ANOTHER WIRE
In our labor market, where there are over 30 million employees, the fact that the share of wage incomes in total production is slightly above 20 percent reveals the importance of the added value created by them rather than the number of employees. I think it is an important point to emphasize that wages that do not match the added value created will be a pain in the ass.
Let’s open this a little bit…
A parallel measurement of national income besides income is made by expenditures. These are household consumption expenditures, government expenditures, private sector investment expenditures, and export and import expenditures. With this understanding, in an economy where the share of earned income decreases, household consumer expenditures are naturally expected to decrease. It is clear that the way out of the current crisis will be closed with the fact that the share of private consumption expenditures in national income is around 60-65 percent and with the approach that less earning will spend less.
All of this leads us directly to the gross domestic product (GDP) data, which is the most important indicator of our production power and economic growth. Decision-makers who impose voracious growth on society every quarter need to put a lot of thought into the health of the data.
The reason is obvious…
In our country, which has scarce foreign exchange reserves in a constant game of devaluation, consumer expenditures, which cannot empty the shelves, cannot provide economic growth, considering the average wage that converges to the minimum wage and its share in GDP.
In other words, there are many points that need to be discussed in the economic growth data.