Our country in the grip of global exploitation

If income and wealth distribution in a country are unbalanced, democracy, law, and justice in that country become questionable. Income distribution refers to the distribution of earnings from goods or services produced in a cycle among individuals, households, or various factors of production. Wealth distribution, on the other hand, is a situation that primarily affects income distribution among consumers. It causes income to be generated based on the sharing of wealth assets among different groups.

Inequality in income distribution can lead to social unrest, cause political turmoil, and negatively affect growth.

The fair functioning of institutions in countries—such as the political structure, legal system, and labor unions—positively influences growth and income distribution.

Our country has been very negatively affected by globalization. Globalization has led to income inequality, environmental problems, and social issues. On the other hand, as a result of the wrong policies implemented in our country, lower-income groups have been marginalized. With globalization, economic decision-making processes have been shaped by capital.

With globalization, our country and economy, which were already growing unstably, have become more fragile. Growth was imposed solely based on the financial sector, which resulted in deindustrialization. This situation has also caused an increase in income injustice.

With globalization, while developed countries have moved toward economic solidarity and integration as a result of global competition, the gap has widened rapidly among countries left outside this structure, making these countries more dependent on those that are globally integrated. This situation has led to an increase in income distribution injustice in developing economies. As a result of global imposition, the government has restricted wage and investment expenditures while increasing interest payments. It has created income transfers in favor of capital owners.

Globalization has reduced income inequality in our country in terms of foreign investors and trade liberalization through the phenomenon of deindustrialization.

As a result of globalization, foreign capital investments have increased competition within the market, which has weakened the labor market and, consequently, the minimum wage, impoverishing minimum-wage earners. The global exploitation called financial development has increased income inequality between the rich and the poor. With the increase in short-term capital movements, sudden exchange rate fluctuations and crises have become more frequent, causing the wage-earning segment to become impoverished.

Low-income individuals are affected more negatively by high inflation compared to groups with broad financial portfolios, and this has a disruptive effect on income distribution.

The difference between the shares of national income received by income groups in a society is defined as income inequality or income distribution inequality. The solution to inequality in income distribution lies in economic nationalism.