Professor Daron Acemoğlu, our pioneer in economics, made a speech in 2019. “Turkey’s national income is growing, but growing because of the poor quality of industrial efficiency (productivity) is not increased” says. Turkey in 1954 “Inter-agency Productivity Committee” An agency was established under the name. This institution, whose name was later changed as the National Productivity Center (MPM), was closed in 2011 and within the Ministry of Industry and Technology. “General Directorate of Productivity” It has been converted. In the 1960s, when I started working in the industry, MPM was a successful institution. If I was not mistaken, there was a man named Mehmet Odabaşı at the beginning. One of his colleagues was Sadi Gencer. Sadi Gencer Istanbul University Faculty of Economics-Harvard Business School established in cooperation “Institute of Business Economics”He was an instructor. When I entered Arçelik in 1961, he and his company İlhami Karayalçın “organization” (organizing, industrial engineering, wage management and institutionalization) consultant.
ADANALI INDUSTRY INCREASES ITS PRODUCTION TRAINER
According to Sadi Gencer, in the 1950s, MPM experts go to Adana industrialists to provide productivity training. Released to combat cost and inflation in those years “National Protection Law” It is in force. There are price controls. These checks continued until 1980. Foreign exchange is cheap, interest is negative. The environment is a complete Is the “seller market” (seller’s market). Industrialists listen to the conference on how productivity increases. Finally one of them “What will happen to us when productivity increases at the factory?” she asks. The conference also ‘Your cost will decrease, your profit will increase. she answers. The industrialist immediately challenges: “Hodja, the state tells us “Cost plus 10% profit” allows to sell with. As our cost increases, our profit increases by 10%. If the cost goes down, our profit goes down. ”
NET 10% PROFIT BEFORE TAX ON TURNOVER IS VERY GOOD
In my writings and speeches “The state should not be involved in prices” Some of my readers as I defend the natural / free market economy “Let the industrialist or trader sell his goods at a reasonable profit, such as cost plus 10%” he suggests. but “The state should also strictly control the cost accounts of firms” he adds. Tax inspectors can find and remove costly nylon or inflated invoices and catch high waste rates. But state supervisors cannot teach industrialists to increase efficiency. Competition is what increases productivity in industry, raises quality and lowers price. So it is a free market. Free market auditor “Competition committee”Stop. Based on the increase in productivity within the democracy that Daron Hodja talks about. “Quality growth” It provides a free and fair competition environment, not price control. Net 10% profit before tax from the turnover is also not reasonable, but high.
Last word: There is no reasonable limit to profit and loss.