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HomeHeadlineTurkey’s Economic and Political Crossroads: Rising Inequality, Authoritarian Shifts, and Public Discontent

Turkey’s Economic and Political Crossroads: Rising Inequality, Authoritarian Shifts, and Public Discontent

Ahmet Karabay

Until recently, Turkey’s ruling coalition claimed that the country was in great condition and urged people to support the government that provided these benefits. Now, however, they are saying the country faces a major threat and are calling for support by saying, “Strengthen the home front!” They aim to use the magnitude of this threat as a bridge to a more authoritarian structure.

According to data from the Ministry of Family and Social Services of Turkey, the following picture emerges:

  • 7.2 million households receive some form of social service.
  • The General Health Insurance premium for 9.7 million people with incomes below one-third of the minimum wage is paid by the Treasury.
  • 53% of employees earn a minimum wage.
  • 83% of the population lives below the poverty and hunger line.
  • 3.5 million retirees have a monthly income of 12,500 TL.
  • Electricity subsidies for 4 million households are covered by the Treasury.
  • 82% of the country’s wealth, valued at $6.5 trillion, is owned by 10% of the population.

This is the general picture of the country. The minimum wage has essentially become the standard wage for over a decade. Therefore, the nation is now closely watching the upcoming minimum wage increase set for the new year.

Various groups have expressed opinions on how the minimum wage should be determined. However, the most seriously considered opinion came from the head of the Turkish Central Bank, Fatih Karahan, who is at the helm of the fight against inflation.

It is reported that during a meeting with investors in Washington, Karahan promised a 25% increase in the minimum wage for 2025. In his media statement, Karahan mentioned that a 25% raise would align with inflation expectations.

This statement led many to take Karahan seriously, agreeing that the government’s decision on the minimum wage increase had been set. Currently, the minimum wage is 17,002 TL, and with the proposed raise, it is expected to reach 21,250 TL.

Karahan’s call to base the minimum wage on forecasted inflation, rather than current inflation, prompted 126 leading economists to speak out. They stated that the proposed raise is “concerning from both a scientific and social standpoint.” They emphasized that necessary actions to fairly distribute the inflation burden must be taken immediately.

HOW TURKEY’S TAX SYSTEM WORKS

Sometimes, rather than explaining things in long sentences, presenting them in a caricatured form makes them easier to understand. Here’s how Turkey’s tax system is best described:

  • If you earn a low income, you pay a lot of tax.
  • If you earn a little more, you pay an excessive amount of tax.
  • If you earn a great deal, you stop paying taxes.
  • If you earn an enormous amount, you start receiving regular payments from collected taxes.

The outcome of this approach is clear. According to TÜİK data, the rich are getting richer, and the poor are getting poorer. The richest 1% hold 40% of the country’s wealth, placing Turkey at the top of wealth inequality rankings in Europe.

While the situation in the country is like this, the ruling circles are setting up new strategies. In my October 6, 2024, article, I wrote, “A new game is being set up in Ankara.” This game became clear with MHP leader Devlet Bahçeli’s call to PKK leader Abdullah Öcalan in his parliamentary group speech.

In my October 23 article discussing Bahçeli’s statement, I mentioned that October 22 could be a turning point. I argued that even if Öcalan were to speak in Parliament, there was no indication that the country would take a step toward democratization, adding, “The government has no such concern or agenda.”

I believe October 22 will be a turning point, but not one toward democratization; rather, it seems to mark a new milestone in the shift toward dictatorship. Seeing strong public reaction to his words, Bahçeli began to shift course, or, more accurately, finally revealed his true intentions.

In my October 24 article, titled “TUSAŞ Attack and Lingering Questions,” I noted that such a broad-scale attack couldn’t have happened as a response to Bahçeli’s statements, explaining my reasoning. Both Bahçeli’s statements and the TUSAŞ attack were attempts to discipline the public. The real purpose behind Bahçeli’s latest statement has now become clear:

“If resistance is shown, methods far harsher, faster, and more violent than traditional strategies must be employed, without regard for anyone’s suffering.”

Everything that’s being done is part of the preparation for a new witch hunt to be launched in the country. The “influence agency” law, which has passed the parliamentary committee, will be the weapon for this witch hunt. Every opposing statement will be considered an “act against the state’s internal and external political interests” and be silenced under the pretext of “espionage.”

Following the Cabinet meeting yesterday, President Erdoğan once again put on his ‘teflon’ persona, blaming social decay on foreign powers. According to him, the ruling coalition had no faults; the problem was the “interest rate lobby”! Inflation was starting to decrease, and issues of justice were being resolved!

According to Erdoğan, they would confront those who insulted the sanctity of the nation! Every time political dialogue seemed to strengthen, the country was tested by terrorism! In defiance of terrorism, they would strengthen the home front and continue to honor the nation’s sacred values.

To conclude, let’s consider economist Şeref Oğuz’s words: “Evil never comes unclothed. It always wears a sacred garment.”

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