Wage earners lost, interest income soared

citizen While their income did not increase as much as their expenses, the earnings of those with income such as rent and interest soared. While household income increased by 107 percent, consumer spending grew by 114.6 percent. The increase in household disposable income was due to high rates of increase in the income of households earning rent, interest and dividends. The increase in wage income remained at 81 percent. The economic report prepared by the CHP states that “the AKP’s economic policy benefited those who earned rents, interest and dividends, while completely crushing wage earners.” The following determinations were made in the report:

Türkiye IS IN A BORROWER SITUATION

“Due to high inflation, household disposable income increased from 4.5 trillion lira to 9.2 trillion lira, while consumer spending increased from 4 trillion lira to 8.6 trillion lira. Behind this enormous increase in consumer spending is high inflation. Households are known to be bringing forward their consumer spending to protect themselves from both rising prices and inflation. In all, the Turkish economy became a net borrower. It was stated that this net borrowing need, which represents 5 percent of national income, was met by external borrowing. While salaries and wages, which are important indicators of household well-being, and employers’ social contributions will increase by 81 percent to 3.5 trillion lira in 2022, rental income will increase by 167 percent to 2.6 trillion, interest income will increase by 139 percent to 660 billion. liras, and dividend income will increase by 184 percent to 1.9 trillion liras.

Rental income increased by 17.5 percent

CHPAccording to the economic report of , the share of wage income in GDP, which was 29 percent in 2020 and decreased to 26.7 percent in 2021, decreased to 23.5 percent in 2022. In 2022, when If this dramatic decline in the share of wage income in national income occurs, the share of rental (property) income will increase from 13.5 percent to 17.5 percent, the share of interest income will decrease from 3 .8 percent to 4.4 percent, and profit sharing will decrease from 9.1 percent to 12.5 percent and increased to .