Why Is Turkey’s Financial Plan Better Than America’s?
Published in Sabah
(Turkey) on 6 December 2010
by Suleyman Yasar (link to original)
U.S. President Barack Obama’s finance commission prepared a new financial plan to save the American economy from deadlock. The aim of the new plan is to show how to ensure the continuity of the American financial system.
So, how can the American financial system be brought to the level of continuity? According to the established plan, American federal debts will be decreased to 4 trillion dollars. Two thirds of debts will be supported by a decrease of spending, and one third will be supported by increasing taxes.
The ratio of federal debts to federal income will be 60 percent in 2023 and 40 percent in 2035. When it comes to budget deficit… In 2015 the budget deficit will reduced to 2 percent behind the federal income. In the new financial plan, capital profits and cumulative stocks will be taxed. Mortgage interests and health insurance payments made by employers will be exempted from taxes. The current 5 percent progressive tax will be decreased to 3 percent, and the taxes that are paid according to incomes will be applied in the rates of 12 percent, 22 percent and 28 percent.
Let’s move to the social security system, one of the fields of spending that puts the biggest burden on the financial system… Because of the increase in lifespan, retirement age will be raised to 68 in 2050. It will be 69 in 2075. But people will not work in jobs that require heavy work after the age of 62. In summary, according to the new approach, people will be put in the middle-age category until the age of 62, and it is decided that they will be able to work in jobs that require heavy tasks until the age of 62. If this financial plan is accepted by the U.S. Congress, the U.S. economy will be in fiscal discipline. So, the prognosis for the American economy will be positive.
If we compare Turkey’s middle-term financial plan with the U.S.’s new financial plan, what kind of assessment can we make? The three-year financial plan that Turkey established has a better performance goal than the U.S.’s new financial plan. According to the financial plan Turkey established, in 2013 the ratio of budget deficit to federal income will decrease to 1.6 percent and public debts will be reduced to 38.8 percent. The U.S.’s budget deficit will be reduced to 2 percent in 2015, and its burden of debts will not be reduced to 40 percent until 2035. By looking at these financial plans, we may state that the Turkish economy has a much more reliable fiscal policy than the American economy.
In summary, while the U.S.’s combative foreign policy is putting its finances in a difficult situation, Turkey’s peaceful and zero-problem-aimed diplomacy with neighboring countries is strengthening its financial structure. The so-called “cannot survive without fighting” American economy should now evaluate the effects of war on the economy.
So, how can the American financial system be brought to the level of continuity? According to the established plan, American federal debts will be decreased to 4 trillion dollars. Two thirds of debts will be supported by a decrease of spending, and one third will be supported by increasing taxes.
The ratio of federal debts to federal income will be 60 percent in 2023 and 40 percent in 2035. When it comes to budget deficit… In 2015 the budget deficit will reduced to 2 percent behind the federal income. In the new financial plan, capital profits and cumulative stocks will be taxed. Mortgage interests and health insurance payments made by employers will be exempted from taxes. The current 5 percent progressive tax will be decreased to 3 percent, and the taxes that are paid according to incomes will be applied in the rates of 12 percent, 22 percent and 28 percent.
Let’s move to the social security system, one of the fields of spending that puts the biggest burden on the financial system… Because of the increase in lifespan, retirement age will be raised to 68 in 2050. It will be 69 in 2075. But people will not work in jobs that require heavy work after the age of 62. In summary, according to the new approach, people will be put in the middle-age category until the age of 62, and it is decided that they will be able to work in jobs that require heavy tasks until the age of 62. If this financial plan is accepted by the U.S. Congress, the U.S. economy will be in fiscal discipline. So, the prognosis for the American economy will be positive.
If we compare Turkey’s middle-term financial plan with the U.S.’s new financial plan, what kind of assessment can we make? The three-year financial plan that Turkey established has a better performance goal than the U.S.’s new financial plan. According to the financial plan Turkey established, in 2013 the ratio of budget deficit to federal income will decrease to 1.6 percent and public debts will be reduced to 38.8 percent. The U.S.’s budget deficit will be reduced to 2 percent in 2015, and its burden of debts will not be reduced to 40 percent until 2035. By looking at these financial plans, we may state that the Turkish economy has a much more reliable fiscal policy than the American economy.
In summary, while the U.S.’s combative foreign policy is putting its finances in a difficult situation, Turkey’s peaceful and zero-problem-aimed diplomacy with neighboring countries is strengthening its financial structure. The so-called “cannot survive without fighting” American economy should now evaluate the effects of war on the economy.