Simply put, there is a connection between the Lira Rate and happiness. The higher the Lira Rate goes the more people become unhappy. On the other hand, when the Lira rate goes down, people are happier than ever before.
Some economists argue that this could be due to increased imports of consumer goods that don’t have as much value as local products which then causes domestic production to decrease and unemployment rates rise. Along with this, there has been little investment in industries like tourism which would produce more jobs for domestic workers. When money flows out of Turkey investments decrease which doesn’t help boost economic growth at all either because it would’ve helped create jobs for unemployed Turks. It could be argued that the increase in imports and decrease in exports has led to a loss of jobs.
Even the lack of interest paid on savings accounts is a result of the Lira’s devaluation, causing it to lose even more value. This makes it very difficult for citizens to save up money and invest in real estate because they’re losing so much money just by leaving it in their bank accounts. There also doesn’t seem to be an end in sight for the current trend of devaluation which would explain why people are becoming progressively unhappier.
The increasing amount of corruption and bribery seen throughout Turkey is also a contributing factor to this unhappiness. The level of bribery has increased because it has become so much harder for people to get by without bribery. This is mostly due to the problems with the economy causing unemployment rates to increase which in turn causes people to resort to illegal measures to keep food on the table.
The International Monetary Fund (IMF) has recently said that the decline in the value of the Lira is directly correlated with corruption in Turkey. The IMF estimates that 40% of Turkish citizens are involved in corruption, buying expensive products like cars and jewelry on credit but never paying off these debts. These loans are passed off onto banks who then charge interest increases forcing more people further into debt.
The lack of transparency in Turkey is also one of the main causes of the Lira’s devaluation. The surge in corruption has made people more vulnerable to black market activity which makes them much more likely to turn to underground banks like the ones in Iran. This newfound business is especially prevalent with the development in bitcoin in Turkey, with many citizens finding ways to buy, sell or trade bitcoin anonymously in order to avoid bribes and other illegal financial activities that they would not be able to complete through legal channels.
The corruption in Turkey comes from an imbalance between the government and its citizens. The government is supposed to represent all citizens’ interests, however it has become widely known that this is not the case.
Some economists attribute the Lira’s devaluation to people believing that their own money is better than other countries’. This could be because of the large amount of immigrants who come to Turkey every year, making them feel like they may one day need to leave. It could also be due to strong international pressure on Turkey about human rights violations. Conflict with neighboring countries like Iraq and Syria makes people feel more insecure about their future in Turkey, causing them to become more apathetic towards politics.