126 economists issue joint response to rumored minimum wage figure!

As the end of the year approaches, millions of employees have their eyes and ears on the 2025 minimum wage hike. Many rates are being discussed behind the scenes regarding the increase, which will also affect the salaries of private sector employees. However, the 25 percent rate, which was alleged to have emerged during Central Bank Governor Fatih Karahan's visit to the US, has brought controversy with it. The rate in question drew backlash, and 126 economists issued a joint declaration calling on the economic administration.

CLAIMS OF A 25 PERCENT MINIMUM WAGE HIKE

Central Bank Governor Fatih Karahan met with investors during his recent visit to the US. It was alleged that Karahan made assessments regarding the minimum wage there and provided a 25 percent rate for the 2025 minimum wage hike.

126 ECONOMISTS JOIN FORCES

Following this, academics from universities and institutions in Turkey as well as abroad signed a joint declaration emphasizing that high inflation has made low-income earners and minimum wage workers more economically vulnerable. The declaration also included a call to the economic administration regarding the 25 percent raise rate.

"LIVING STANDARDS HAVE DROPPED SIGNIFICANTLY"

The following statements were included in the economists' joint declaration:

"The high inflation problem that has persisted in the Turkish economy for a long time has made our low-income citizens and minimum wage workers more economically vulnerable and has significantly lowered their living standards.

"USING 25 PERCENT AS A BASIS IS CONCERNING"

The monetary and fiscal policies implemented in recent times are being shaped in line with the goal of combating inflation. However, the decision to avoid a minimum wage increase in July 2024 and the plan to determine the increase projected for January 2025 based on the expected inflation rate (25%) rather than the actual inflation rate is concerning from both a scientific and social perspective.

"WAGE INCREASES MADE BELOW THE ACTUAL INFLATION RATE WILL FURTHER DISTORT INCOME DISTRIBUTION"

We, the undersigned economists, emphasize that:

The social cost of combating inflation must be distributed fairly,

Protecting the purchasing power of minimum wage earners is a necessity of a social state,

Wage increases made below the actual inflation rate will further distort income distribution,

The success of the fight against inflation cannot be achieved at the expense of lowering the living standards of low-income groups.

CALL TO ECONOMIC MANAGEMENT: REALIZED INFLATION MUST BE TAKEN INTO ACCOUNT

In this context, we call on those managing economic policy to:

HERE IS THE LIST OF ECONOMISTS WHO SIGNED THE DECLARATION

Ceyhun Elgin, Boğaziçi University

Adem Yavuz Elveren, Izmir University of Economics & Fitchburg State University

Cem Oyvat, University of Greenwich

A. Erinç Yeldan, Kadir Has University

A. Oğuz Demir, Economists Platform

Ahmet Haşim Köse, Open University

Ahmet Makal, Ankara University (Retired)

Ahmet Yılmaz, Marmara University

Ali Alper Alemdar, St. Francis College

Ali Rıza Güngen, McMaster University

Alper Duman, Izmir University of Economics

Anıl Aba, Yaşar University

Arda Tunca, Independent Researcher

Armağan Gezici, UWE Bristol

Ata Can Bertay, Sabancı University

Ayça Akarçay, Galatasaray University

Ayça Tekin-Koru, TED University

Aziz Çelik, Kocaeli University

Aziz Konukman, Ankara Hacı Bayram Veli University

Baki Demirel, Yalova University

Begüm Özkaynak, Boğaziçi University

Bilin Neyaptı, Bilkent University

Bülent Eşiyok, Istanbul Gelişim University

Burçay Erus, Boğaziçi University

Çağla Ünlütürk, PAU

Caner Özdurak, Beykoz University

Cem Başlevent, Istanbul Kültür University

Cem Somel, Abant İzzet Baysal University (Retired)

Çiğdem Boz, Independent Researcher

Değer Eryar, Izmir University of Economics

E. Ahmet Tonak, University of Massachusetts Amherst & Smith College

Ebru Voyvoda, METU

Elif Karaçimen, Recep Tayyip Erdoğan University

Emre Özçelik, METU-Northern Cyprus

Engin Kara, Cardiff University

Ensar Yılmaz, Yıldız Technical University

Ercan Uygur, Ankara University (Retired)

Ergin Yıldızoğlu, Cumhuriyet Columnist

Erol Balkan, Hamilton College

Erol Taymaz, METU

Esra Uğurlu, Leeds University

F. Ahmet Öncü, Sabancı University (Retired)

Fatih Kansoy, Oxford University

Fatih Özatay, TOBB ETU

Ferhat Akyüz, Samsun University

Fikret Adaman, Boğaziçi University

Fikret Görün, METU (Retired)

Filiz Eryılmaz, Bursa Uludağ University

Galip Yalman, METU (Retired)

Gökçer Özgür, Gettysburg College

Gülbiye Y. Yaşar, Ankara University

Güldem Atabay, Economist/Writer

Güneş Aşık, TOBB University of Economics and Technology

Güney Işıkara, New York University

Günseli Berik, University of Utah (Retired)

Hakan Mıhcı, Hacettepe University (Retired)

Haluk Levent, İstanbul Bilgi University

Hasan Cömert, Trinity College-Hartford

Hasan Murat Ertuğrul, Anadolu University

Hasan Tekgüç, Kadir Has University

Hayri Kozanoğlu, Altınbaş University

Hüseyin Özel, Hacettepe University

İbrahim Semih Akçomak, METU

İlhan Döğüş, University of Europe for Applied Sciences

İnsan Tunalı, Koç University (Retired)

İris Cibre, Financial Markets Expert

İsmail Ertürk, Manchester University

Kamil Yılmaz, Koç University

Kerem Cantekin, Independent Researcher

Kıvanç Karaman, Boğaziçi University

Korkut Boratav, Ankara University (Retired)

Korkut Ertürk, University of Utah

M. Aykut Attar, Hacettepe University

M. Kerem Çoban, SOAS, University of London & Kadir Has University

M. Murat Kubilay, International Finance Expert

M. Teoman Pamukçu, METU

M. Necat Coşkun, Ankara Hacı Bayram Veli University

Mehmet Şişman, Marmara University

Mehmet Uğur, University of Greenwich

Mehmet Uluğ, Roskilde University

Murat Birdal, Istanbul University

Murat Taşdemir, İstanbul Medeniyet University

Mustafa Ulus, Galatasaray University

Nesrin Nas, Common Life Group

Oğuz Esen, Izmir University of Economics

Oğuz Yıldırım, Alanya Alaaddin Keykubat University

Oktar Türel, METU (Retired)

Oktay Özden, Kadir Has University

Ömer Faruk Çolak, Economics and Society Magazine

Öner Günçavdı, Istanbul Technical University

Onur Baycan, Anadolu University

Onur Yeni, Hacettepe University

Orhan Karaca, Independent Researcher

Orkun Saka, City, University of London & LSE

Özcan Ceylan, Özyeğin University

Özge Özay, Fitchburg State University

Özgün Biçer, Marmara University

Özgür Narin, Ordu University

Özgür Orhangazi, Kadir Has University

Özlem Onaran, University of Greenwich

Pelin Akçagün, Ondokuz Mayıs University

Pınar Deniz, Marmara University

Pınar Kahya, İnönü University

Selin Pelek, Galatasaray University

Serdal Bahçe, Ankara University

Serdar Acun, Munzur University

Sermin Sarıca, Istanbul University

Sevil Acar, Boğaziçi University

Sevinç Mıhcı, Hacettepe University

Şevket Pamuk, Boğaziçi University (Retired)

Sezgin Polat, Galatasaray University

T. Sabri Öncü, former Senior Economist at UNCTAD, former Head of Research at CAFRAL, RBI

Tahsin Bakırtaş, Sakarya University

Tansel Güçlü, Munzur University

Timur Han Gür, Hacettepe University

Uğur Gürses, Economics Writer

Ümit Akçay, HWR Berlin

Umut Üzar, Karadeniz Technical University

Ünal Zenginobuz, Boğaziçi University

Veysel Ulusoy, Boston College

Yakup Karabacak, Akdeniz University

Yalçın Karatepe, Ankara University Faculty of Political Sciences

Yasemin Dildar, California State University

Yiğit Atılgan, Sabancı University

Zafer Tunca, Retired faculty member

Ziya Öniş, Koç University

News Source: 12punto