Just as Little Economy as We Can Stay Alive

* Photo: Evrim Kepenek - bianet

Click to read the article in Turkish

Today's economy is a complex whole, consisting of several multidimensional variables such as national and international transactions; large-scale activities undertaken with financial instruments, alongside the production of goods and services; as well as growth, employment, inflation, current account deficit, income distribution, etc.

But, why am I listing all these general facts in these extraordinary days that we are all coming through?

Because, one the one side, people are worried about their health and, on the other side, they are concerned that they might lose their jobs, they might be unable to pay their debts or they cannot sustain their economies.

The "Economic Stability Shield" announced against Covid-19 the other day (March 18) has not introduced any measures that directly concern workers, the poor or migrants, nor has it offered any solutions for the unfavorable circumstances that they will inevitably find themselves in.

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The measures introduced by the package as well as any additional measures that need to introduced for businesses should also be discussed.

Apart from that, there is the concept of "solidarity economies" that we are talking over for a long time. In the upcoming days, we need to urgently discuss how we can bring this concept into the present and how individuals, civilian initiatives and municipalities can form a joint structure in this context.

But, today, I will recommend the following: Slow down economic activities to such point that it will only ensure that we can stay alive.

I will also say that economy should be operated in a slower pace and it will be possible to seek reasonable solutions for shrinking employment. Then, I will move on to recommend a series of emergency measures:

1. Ministry of Treasury and Finance, Social Security Institution and Municipalities should first postpone all types of tax and insurance premium payments for 3 months and, if necessary, for 6 months.

2. Banks should postpone the payments of all loans, especially commercial loans, consumer loans and housing loans, at first for 3 months, then should defer it for 6 months, if necessary.

3. All rents should be postponed for 3 months. This postponement should be extended to 6 months, if necessary.

4. All employers should pledge that they will not dismiss any employees for 3 months, and if necessary, for 6 months.

5. In businesses where production has been temporarily halted, workers should not be granted unpaid leaves. Half of their wages should be paid.

6. All public institutions, municipalities, banks and firms should postpone their all individual and corporate/institutional debts owed for 3 months, and if necessary, they hould postpone them for 6 months.

7. All medical services for flu/coronavirus should be free.

8. Governor's offices and municipalities should grant aid-in-kind to the ones without any income and to the ones in need.

9. These recommendations are based on the idea that all stakeholders postpone their own interests/debts owed in such a way to ensure that they relieve one another. In that way, they will also relieve themselves. Measures can be improved, additions can be made.

I do not take foreign exchange, interest, international transactions and the like into account. Because, I base my recommendations solely on how all people can be relieved of their concerns and how their minimum needs can be met throughout the period when they have to spend at home.

It can be found unrealistic, it can sound utopic, but wouldn't it be a beginning to leave the dystopia that we are currently living in? (AGY/APA/SD)