Savings are the part of the values produced by a country that are not consumed and allocated to investment.
We specifically include the definition of “allocated for investment” in the definition of savings. Because the famous British economist KeynesAs proven by , saving eventually equals investment.
The simplest example of savings is when the farmer does not consume some of the wheat he produces and allocates it for seeds for next year’s production, in other words, for investment.
DOMESTIC SAVINGS ARE THE ONLY INVESTMENT SOURCE
Today, our interest in savings in Turkey, which is faced with the necessity of the Production Revolution, is because it is the only source of investment. Undoubtedly, foreign loans are also a source of investment, but since they will eventually be paid with domestic savings, investment has no source other than domestic savings.
The key to the program ahead is that we start the act of producing with savings. A country invests as much as it can save, involves more people in production activities and produces.
The concept of savings is used in the daily language of the people in the sense of avoiding extravagance. Preventing wastefulness undoubtedly affects total savings. However, the real problem boils down to intervention in distribution and property relations.
Of course, saving is ultimately directing the values created by labor and labor to investment. However, property and distribution relations in the country determine how much of the values created by the workforce will belong to those who produce those values and how much will belong to the capital owners.
INCREASING THE SAVINGS RATE TO 40 PERCENT
As a result, taxes, wages, salary conditions and policies determine the saving rate. Today, a development plan that will increase the savings rate from 30 percent to 40 percent with the Plan, Savings, Investment, Production, Employment and Equitable Distribution program for the Production Revolution needs to be prepared and implemented. State resources should be allocated to public investment and private investors should be encouraged.
THE POINT WE REALLY WANT TO REACH
The point we really want to come to is Turkey’s saving ability. We would like to draw attention to the considerable extent of this ability with a few figures.
one– It is also known by public authorities that 500 Billion Dollars belonging to Turkish citizens have been deposited in foreign banks. Savings are made by confiscating the income of the worker. However, this savings turns into investment in Western countries. Imperialist capital invests with our nation’s savings and earns interest income. This resource should be brought to Turkey as soon as possible and converted into investment capital, before the sanctions of Western imperialists are given the opportunity. In this way, we can provide jobs and decent living conditions for millions of our people.
2– It was a few months ago, Vice President Cevdet Yılmaz talked about the need to direct the 300 Billion Dollars worth of gold stored in bank vaults to the investment market. However, this obligation was not mentioned again, probably because it touched Zülfüyâre. Investment capital must be converted by the owners of 4760 tons of gold. Gold kept by citizens as savings or ornaments will be excluded from these measures.
3– Extraordinary interest income and profits of banks, especially foreign banks, are another indicator of Turkey’s saving ability. It can be said that bank earnings are already directed towards investment. This is not the case, some of it goes abroad as foreign bank earnings. On the other hand, private investments supported by the banks’ credit system and the use of tax revenues as public resources within the framework of the plan create very different results in terms of development politics.
4– The savings of our Turkish citizen workers and businessmen in foreign countries are, as a result, the product of the labor of Turkish citizens, and even if they are not considered within the country’s savings, they can participate in Turkey’s investment resources as the savings of Turkish workers. For this purpose, the necessary incentives should be implemented to convert the savings of 300 billion Euros in Europe and America into investment in Turkey.
5– It is also necessary to adopt a determined savings practice regarding the measures to be taken for current expenditures in state bodies. News has emerged that the government has resorted to certain practices against wastefulness. However, it is important whether the resources obtained in this way will be directed back to consumption or investment. In any case, the simple living of state administrators and high-level officials and their work with a culture of service to the public will contribute to savings, investment and the efficient management of the economy in the country.
6– By reorganizing the tax system and focusing on direct taxes, income distribution can be regulated and new resources can be created for public investment.
INTERVENTION IN OWNERSHIP AND DISTRIBUTION RELATIONS FOR THE PURPOSE OF PRODUCTION REVOLUTION
If we take into account the figures given above, it seems that Turkey has a strong savings accumulation. Instead of reaching out to foreign banks and countries, the only fundamental solution is to evaluate the possibility of converting this savings into investment by encouraging private interests. However, in order to achieve this, public interest interventions are required in property and distribution relations.
The Production Revolution can only be achieved this way, and Türkiye is on the verge of this necessity. The Homeland Party is the leading force of this necessity.
