TR Economy & Updates

what

Experienced member
Moderator
Messages
2,158
Reactions
10 6,393
Nation of residence
Germany
Nation of origin
Turkey
There won't be a strong middle class without strong companies. In fact, without strong companies, there will be no economy.

Medium-sized and family-owned companies are usually best for Stakeholders and a good middle class with a good income. Once companies reach the size of Koc, Sabanci and the likes they usually only ever care about shareholder value.

This is just my personal observation.
 

TheInsider

Experienced member
Professional
Messages
4,059
Solutions
1
Reactions
34 14,459
Nation of residence
Turkey
Nation of origin
Turkey
Last 12 month exports (October 2020-october2021) stands at 215.7 billion $ (a yearly increase of %29)
BTW the export/import ratio without the energy imports is %119 for this month. The biggest problem in our economy is energy (gas&oil) which is why IMHO thorium molten salt reactor project should have number one priority and we should heavily invest in EV transition not just for cars but also for trucks and tractors.
 

Xenon54

Experienced member
Switzerland Correspondent
Messages
2,181
Reactions
5 6,703
Nation of residence
Switzerland
Nation of origin
Turkey
There won't be a strong middle class without strong companies. In fact, without strong companies, there will be no economy.
The backbone of major european aconomies are not big corporations but small and medium sized companies and the middle class thats working in them.
You on the other hand promote the slave culture in Turkey where big corporations employ people at the lowest wages.
 

Tornadoss

Contributor
Messages
1,375
Reactions
4 2,619
Nation of residence
Czechia
Nation of origin
Turkey

Natural gas prices are increased by 48% for the industry and electricity producers. Even though, for consumers it's not increased, this will affect electricity and other prices.
@Corona what is funny here?
 

Huelague

Experienced member
Messages
3,896
Reactions
5 4,103
Nation of residence
Germany
Nation of origin
Turkey
Turkey is not importing electricity, its importing gas and oil and guess what those power plants use to generate electricity...
We can build more dams but that also has its limits.
I dont say electricity.
 

Huelague

Experienced member
Messages
3,896
Reactions
5 4,103
Nation of residence
Germany
Nation of origin
Turkey
No, thats where ypu guys are wrong, the most important are the tax paxing middle class, you want to destroy a economy? Destroy the middle class as AKP does.
Dont fix on German "Mittelstand" to much. Turkey is not Germany.
 

what

Experienced member
Moderator
Messages
2,158
Reactions
10 6,393
Nation of residence
Germany
Nation of origin
Turkey

Government is working on tax cuts and wage hikes for low-income families, which is long overdue. Apparently the hikes and cuts are supposed to offset the inflation.


But again, if wages rise (of course depends on how much and how many people are affected) and people get more money, companies will have to raise their prices and thus the inflation spiral will continue.
 

Huelague

Experienced member
Messages
3,896
Reactions
5 4,103
Nation of residence
Germany
Nation of origin
Turkey
Again, we should not compare Turkey with EU countries like Germany. They pay 1/3 of income to rent a flat. We not.
 

Rodeo

Contributor
Moderator
DefenceHub Diplomat
Messages
1,330
Reactions
31 5,067
Nation of residence
Turkey
Nation of origin
Turkey

Government is working on tax cuts and wage hikes for low-income families, which is long overdue. Apparently the hikes and cuts are supposed to offset the inflation.


But again, if wages rise (of course depends on how much and how many people are affected) and people get more money, companies will have to raise their prices and thus the inflation spiral will continue.
Or they could(companies) lay some of the workers off.
 

HTurk

Contributor
Messages
576
Reactions
1 1,203
Nation of residence
Germany
Nation of origin
Turkey
The backbone of major european aconomies are not big corporations but small and medium sized companies and the middle class thats working in them.
You on the other hand promote the slave culture in Turkey where big corporations employ people at the lowest wages.

Dont fix on German "Mittelstand" to much. Turkey is not Germany.

In addition to what you've said:

1.: It's simply a question of how you define "medium sized companies" aka "Mittelstand". Some scientific sources (e.g. IfM Bonn) claim that 99% (!) of all German companies are part of the so called Mittelstand while other sources state that 2/3 of the German GDP is produced by big, global corporates.

2.: Big companies are the real drivers of innovation and technological change. Many highly successfull economies around the globe are dominated by multinational enterprises (South Korea, China, the US, India and many more).

3.: When it comes to production, you have to be big. Export-oriented economies and countries with a large manufacturing sector are usually dominated by big enterprises. Small and mid-sized companies are strong in construction, trade and services.

4.: Germany, Switzerland and the Netherlands are countries with a long history of industrialization. It is quite normal to have many mid-sized companies when you had plenty of time to grow and thrive. However, you cannot catch up with small and mid-sized enterprises nor can you build a strong industrial base. It is no coincidence that economies like China, South Korea, Taiwan, even India, are dominated by very large companies.

To sum it up, what xenon wrote is a very Western European mindset. What works for Germany, doesn't necessarily works for Turkey or China or India or Brazil or Indonesia.

 

Anastasius

Contributor
Moderator
Azerbaijan Moderator
Messages
1,405
Reactions
5 3,116
Nation of residence
United States of America
Nation of origin
Azerbaijan
In addition to what you've said:

1.: It's simply a question of how you define "medium sized companies" aka "Mittelstand". Some scientific sources (e.g. IfM Bonn) claim that 99% (!) of all German companies are part of the so called Mittelstand while other sources state that 2/3 of the German GDP is produced by big, global corporates.

2.: Big companies are the real drivers of innovation and technological change. Many highly successfull economies around the globe are dominated by multinational enterprises (South Korea, China, the US, India and many more).

3.: When it comes to production, you have to be big. Export-oriented economies and countries with a large manufacturing sector are usually dominated by big enterprises. Small and mid-sized companies are strong in construction, trade and services.

4.: Germany, Switzerland and the Netherlands are countries with a long history of industrialization. It is quite normal to have many mid-sized companies when you had plenty of time to grow and thrive. However, you cannot catch up with small and mid-sized enterprises nor can you build a strong industrial base. It is no coincidence that economies like China, South Korea, Taiwan, even India, are dominated by very large companies.

To sum it up, what xenon wrote is a very Western European mindset. What works for Germany, doesn't necessarily works for Turkey or China or India or Brazil or Indonesia.

Question, HTurk: Where do you think those big-size companies came from?

Small to mid-size companies, that's where. Which are absolutely crucial to propping up the industrial base in places which are not major population centers or government darlings. Most of Turkey's growth is concentrated in the north-west - eastern Thrace to be more specific. I can give you a direct example from the US, where focusing on big corporation growth at the expense of smaller ones pretty much killed the industrial sector in the US (i.e. Detroit), which is why we are now even exporting the building of US weapon systems to the likes of Mexico.

Germany, Switzerland and Netherlands only have like a 50 year head-start on industrializing before Turkey did. That really isn't that long and if Turkey had leaders that invested in proper economic policies, it would've caught up years ago. In fact, it was on track to do so around the early 2000s, where it was keeping pace with Poland, which pursued the exact same policy as Turkey does now (trying to become the manufacturing hub of Europe), except they got something like 200 billion from the EU to help them through that process. Except Poland is now way ahead of Turkey, mainly because they didn't shoot themselves in the foot. Their main issue today is demographics, which is also something that Turkey will be facing 30-40 years from now, if not earlier.

The current economic strategy is trying to shortcut a healing process for an injury that was self-inflicted and possibly making it worse.
 
T

Turko

Guest

IMG_20211103_183009.jpg
 

Nilgiri

Experienced member
Moderator
Aviation Specialist
Messages
9,744
Reactions
118 19,743
Nation of residence
Canada
Nation of origin
India

Government is working on tax cuts and wage hikes for low-income families, which is long overdue. Apparently the hikes and cuts are supposed to offset the inflation.


But again, if wages rise (of course depends on how much and how many people are affected) and people get more money, companies will have to raise their prices and thus the inflation spiral will continue.

One can pump more blood through clogged arteries....doesnt fix the clogging much tho...you just get more pressure and localised blood velocity....but that does not do much good to the body.

Declogging arteries.....needs structural reform stuff.....the only one I see here is the tax rate cut on lower brackets (so long as it doesnt create more debt by increasing the budget deficit).

Money is circulated far more efficiently (in most cases) by the people in the end...compared to govt. Especially for the individual's personal responsibility + economic matters of day to day.

A govt must have extremely good reason to take money from people (the purpose must be collective public welfare, security, infra, justice oriented and be well designed + managed on it)
 

Follow us on social media

Top Bottom