Data refuted Mehmet Şimşek: Companies caused inflation

Minister of Treasury and Finance Mehmet Simsek, according to the salary and salaries “high increases” While it is among the reasons for high inflation, the share of the labor force in growth has stagnated for years. Moreover, there is a decrease compared to the first quarter of this year. On the other hand, while companies increase their profits, the producer also fuels price inflation.

TURKSTATAccording to growth data, the share of labor payments in gross added value decreased from 36.3 percent in 2016 to 26.5 percent by the end of 2022. The share of capital increased from 47.5 percent to 54.5 percent in the same period.

‘COMPANIES DOUBLE THEIR PROFIT‘

In the first quarter of this year, it increased to 37.8 percent due to EYT payments and compensation, but it started to decline again in the second quarter with 34.3 percent. The resulting picture shows that although it has increased and decreased from time to time, the share of the labor force in growth has remained low for years.

Economist Prof. Dr. Erinç Yeldan He also drew attention to the inconsistency in Şimşek’s statement with TUIK’s tables. Sharing TÜİK’s annual industry and service statistics, Yeldan said, “Minister Şimşek’s claim that ‘There are wage costs behind inflation’ is wrong, inconsistent and misleading to the public. TURKSTAT data documents that after 2015, companies rapidly increased their profit margins and fueled producer price inflation based on their monopolistic positions.” said.

(Erinç Yeldan)

The table shared by Yeldan shows that the profit margins of companies skyrocketed after 2019, and accordingly, producer price inflation started to climb, especially after 2020. Yeldan also pointed out that real wages decreased in all sectors after 2015.

The table shows that wages started to decline rapidly after 2016. This decline is replaced by a “rapid decline” after 2020. Wages are falling rapidly in mining, food manufacturing, metal industry, manufacturing industry, textile product manufacturing, electrical equipment manufacturing. The decline continues in 2021.