We won’t take our wealth when we die, ErdoIan tells bosses

President Recep Tayyip Erdogan told a group of representatives from Turkeyand’s leading conglomerates that no one will take their wealth with them when they die, a reference to ongoing debates over how much Turkeyand’s new minimum wage should be.
Erdogan was addressing a labor market forum on the sidelines of Sundayand’s G-20 world leaders summit in Antalya. and”We should be more generous to reduce inequality,and” Erdogan told the audience, among them some of the countryand’s top employers. and”Letand’s earn a little less than you currently do. Share your wealth with the low-income group. Why? Letand’s not provoke the poor,and” Erdogan continued in his speech on Sunday in Antalya.
In the run-up to the Nov. 1 election, the ruling Justice and Development Party (AK Party) made the pledge to lift the net minimum wage to TL 1,300 ($454) a month from TL 1,000, aiming to win over the roughly 5 million minimum wage earners struggling to make ends meet. The planned hike is due to go into effect next year and could impact about a fifth of the labor force, costing the private sector an estimated $9.2 billion. Critics, including business owners and economists, say it will stoke inflation, hurt competitiveness and ultimately lead to job cuts.
Erdogan said he agreed the costs for employers should be minimized and that lower interest rates are part of this strategy. The president renewed his call for lower interest rates on Sunday, saying they were too high to encourage investment and entrepreneurship, an argument likely to unnerve investors already worried about the independence of the central bank. Long a champion of populist economics, Erdogan has repeatedly called for lower rates to spur growth, equating higher financing costs with treason. Economists say Turkeyand’s central bank needs to hike rates to rein in inflation. Its refusal to do so has sparked worries about political interference in monetary policy, helping send the lira to a series of record lows this year.
andquotIn Turkey, the interest rates are high. Our rates are not those in the West, where they are low,andquot Erdogan said on Sunday. andquotFirst you have to reduce the cost of money. As long as the cost of money is on the rise, you can neither find young businessmen nor young businesswomen,andquot he said, as Turkish Central Bank Governor Erdem Baiandci and International Monetary Fund (IMF) President Christine Lagarde looked on. The AK Party, founded by Erdogan, recovered its single-party majority in a snap election on Nov. 1. Investors are now waiting to see whether it will pursue a populist economic tack, or whether it will pursue greater fiscal discipline and attempt structural reforms that economists say are overdue.

SOURCE: TODAY’S ZAMAN

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