now is the freedom in Turkey is an absolute foreign word. The Turkish President Recep Tayyip Erdogan was cancelled at first, the freedom of expression and, later, the free Act of justice prevented, he now even the market economy to a Halt and opens the door for economic anarchy. In the fight against the high Inflation, the Turkish government has announced on numerous goods, a price reduction of ten percent.
all of the products that would be included in the calculation of the basket for the Inflation that Affected the Minister of Finance of Berat Albayrak stated. State-owned companies would reduce prices. At the same time Albayrak appealed to private companies to join the Initiative. “This is a voluntary campaign,” said Albayrak. Transactions, the parties concerned should attach the Logo of the project in their shop Windows. Albayrak called on to help companies reduced their prices.
thousands of companies have already assured that they were battling, said Albayrak. The son-in-law of President Erdogan presented a new web site with the title “fight against the inflation.org”. There should be no “global changes” to the Gas and electricity prices until the end of the year will not continue to rise. At the same time, he announced that the banks for high-interest loans are make a discount of ten percent. Among the presented measures, reductions in VAT.
The ultimate promise of the despot
The programme of action means nothing else than that the government will introduce gradually, price controls, and thus the free markets through supply and demand, prices, and wiped out. It is also a capitulation in the face of galloping Inflation. The inflation rate increased in September mainly because of the currency crisis to nearly 25 percent.
producer prices were even soared by 46 per cent in the height. This shows that the price pressure that prevails in the Economy. Ankara now wants to prevent that the consumer prices producer prices to dizzying heights. And, in fact, a certain degree of success in inflation could set statistics, however, to an extremely high price.
“For more than 4000 years, have introduced dictators, despots, and politicians of all Stripes are always price controls as the ultimate promise to the people, to make everything cheaper. But the result was always disastrous,“ says the American Professor of Economics of the University of Loyola, Thomas DiLorenzo. It’s called supply shortages, a deterioration in the quality of the product, the promotion of black markets and corruption, a destruction of productive resources, a tyrannical price-control bureaucracy and a dangerous concentration of power in the hands of those who have arranged the price controls.
More than 69,000 products under the magnifying glass
Already, the price police is in the country on the road. The so-called Zabita inspects supermarkets and smaller stores, and is searching for “hustler”. Regularly also the weight of the Goods is checked, or it is price tags are compared. In each of the stores of toilet paper within two weeks, 25 percent more expensive, for eggs, consumers must pay a third more, according to price police, Zabita.
On the stock exchanges of the announcement of Albayrak was not very good. The shares of BIM Birlesik Magazalar were in the top four percent. The Discounter is aiming to lower the prices of 50 products by ten percent and to the end of the year freezing. The Turkish Lira weakened against the Dollar. Since the beginning of the year, she has lost around 40 percent of their value.
Finally, the fear is that the government intervenes always further in the economy and consequently the economic decline even worse. Triggered the currency crisis, among other things, by the fear of a large influence of the President on the actually independent Central Bank. Erdogan calls despite the high Inflation, lower interest rates.
how many of the prices Were to fall and which companies will participate, was not at first clear. The Turkish trade Ministry had said on Monday, more than 100 companies would have to take to excessive price increases in the position.
More than 69,000 products of almost 4000 companies had taken the Ministry under the magnifying glass. When the currency crisis had come to a head in August, the Ankara government said increases in price, provided that companies are not confronted with rising costs or a higher exchange rate affected.