Latest unemployment numbers: Americans are forced to work!

About a year ago, I published a column that exposed the ploys of the U.S. Federal Reserve. And now, the world has finally begun to warn the Federal Reserve against raising interest rates as if it had just now become aware of it.

The Federal Reserve took policies that would reduce the value of other currencies against the dollar by buying cheap goods from abroad, as it aimed to reduce domestic inflation.

The Fed chose to increase interest rates rather than reduce the size of the balance sheet, even though the stockpile of money was the most important reason for the rise in recent inflation levels.

The Fed followed a policy of “as long as we're doing well, let everyone else suffer...” If the Fed had chosen to reduce the size of the balance sheet, it could have created a better environment for itself and the world at large without the need to raise interest rates.

The U.S. did not make the right choice when it gave up globalization because the Fed took a position in its own way.

The U.S., with all its institutions, stands behind the slogan Make America Great Again. The only way to make America great again is to make everyone else suffer.

America itself is not in a good position. It is also an integrated country with energy, production, agriculture, tourism, mining, security, chemistry and space resources. It seems almost impossible for her to deteriorate, but she also has weaknesses.

The United States does not recognize or consider a technical recession as a real recession because it is caused by the import and export process and America did it on purpose. Washington does not explain the issue from this matter so that the world does not pay attention and stresses the increase in employment.

The unemployment rate in the United States decreased under the influence of the growth of service sector activity after the lifting of the restrictions of the Corona epidemic. America rejects the state of recession because of this issue. But during this stage, it seems that she is deceiving herself. This is America's weak point.

The Federal Reserve is destroying its empire as a result of its abandonment of globalization

It would be very remarkable, but I feel that Americans are working because they are compelled to do so, and if the social state does not really exist then we can say that the current conditions are forcing Americans to work.

For Americans with a Social Security number, when no one gives loans to the unemployed anymore, Americans have no chance of survival other than work. And if the Fed does not adjust its policy, it appears that employment development in the U.S. will be negatively reversed.

Under the current circumstances, we can say that 2023 will be a difficult year for the global economy. Türkiye must take advantage of its main influence and use it to find solutions and pave the way for it.

According to recent data published by the Turkish Statistics Authority, the unemployment rate in Türkiye has fallen to its lowest level since March 2014. We cannot compare this decline with, for example, the United States. Because the development of employment in Türkiye is directly in line with its economic growth. They're not forced to work, but they work with a kind of appetite.

The sectoral distribution of the increase is more balanced compared to the advanced economies. What is also remarkable is that increasing wages does not impede employment growth. The same situation exists in the United States, but not in the same proportion in Türkiye.

If new job opportunities are created, employment dynamics and wage problems in Türkiye will reach a good point for employers and employees. I can say that this is the purpose of the current New Economic Policy taken by Türkiye.

Türkiye has 25 million employees, of which 13 percent (3.2 million) are government employees. (Government employees aside) Reports indicated that the minimum wage in the real sector was around 50 percent in 2002, and dropped to 40 percent in 2020.

Nor can we say that the performance of the past twenty years indicates that the minimum wage figures have fallen to an undesirable extent. Because in line with the increase in employment it is necessary to lower the minimum wage figures further to achieve a more equitable sharing of income. But first, we need to figure out how much we have to make this reduction.

I have written a little while ago to a desirable extent, but we do not know whether there is such desirability, and if so, in what proportion and at what rate it should be drawn. We know that Vedat Bilgin, Minister of Labor and Social Security, has called on workers to join unions because there is no minimum union wage. Under these circumstances, we cannot say that the increase in wages contributed to the reduction of the minimum wage rate.

The current dynamics justify the situation: since the minimum wage figures are not declining, the minimum wage must be increased. The only solution is to create value-added functionality. For this to happen a strong minimum wage rate must be maintained for the reasons I just mentioned.

The government encouraged employers with letters: "You don't have to enforce a minimum wage just because a minimum wage has been set." The burden of interest was also borne on them for a more even distribution.

If wages are not up to the right level and the current dynamics of self-interest continue to target customers and employees, employers will have to leave their profits back to moneylenders.

I see from the government's statements that the minimum wage will rise in January, but not accompanied by inflation as it was last year, but rather with future aspirations and expectations.

It also considered this approach constructive but incomplete. I am against the view that the wage relationship as a function of inflation. I am also against the view that interest as a function of inflation. Because this approach forms the basis for legitimizing interest with inflation.

Now we look at the indicators of this incomplete constructive approach, as expectations indicate that inflation will decrease at the end of 2023 to 24.9 percent, according to the so-called Turkish medium-term economic program.

It is noteworthy that the total wage increase in 2022 was 80 percent, and there will be no difference in inflation when the primary effect works,

So if the criteria and estimates of the Turkish Medium Term Economic Program are applied to the current minimum wage, the new amount will be 6,870 Turkish liras. This does not satisfy anyone. Because it is wrong to assess the relationship between wages and inflation. Pay must be earned in the added value it creates.

My main indicator is a maximum of 16,000 TL which is the exact amount for those who will apply for social housing in Istanbul.

If this refers to the income of two minimum wage earners, then the new wage should be 8,000 TL according to today's dynamics.