Wage impoverishment: The silent scream brought by price hikes

A new year comes with new beginnings and hopes. However, without forgetting the difficulties of the year we left behind, we must grasp the importance of building a fairer and more livable future together. May 2025 be the beginning of a period where labor is valued, purchasing power truly increases, and everyone leads a humane life.

In the shadow of economic hardships, by believing in the power of solidarity and acting together, we can reach better days together. May this new year be a year not just of changing numbers, but of changing lives, where hopes flourish and justice is re-established.

Wishing everyone health, peace, and a humane life…

In Turkey, the hikes made to the minimum wage and pensions continue to be one of the most debated topics on the economic agenda. Although the recently announced hike rates may appear to be an improvement on the surface, the picture is not very bright in terms of purchasing power, quality of life, and income justice. This situation is actually the silent scream of a process of “wage impoverishment.”

HIKES IN THE POCKET, POVERTY ON THE TABLE

In Turkey, the hikes made to the minimum wage and pensions melt away within the gears of inflation instead of increasing the public's purchasing power. The increases that the government calls “historic hikes” are nothing more than an illusion that has no equivalent in the market or the bazaar. Today, buying a kilo of meat has become a luxury, and accessing basic food products has become impossible.

Wage impoverishment is not just an economic crisis, but a humanitarian one. People live below the poverty line even though they work, and retirees cannot get the return for the labor they gave for a lifetime. Hikes may be a number on an income statement, but the sound of empty plates on the table is more real and more painful.

Justice begins with people living humanely. Today, Turkey's biggest crisis is this very system that devalues labor.

HIKES OR THE SHADOW OF INFLATION?

The new minimum wage hike is being touted by the government as a “historic increase.” However, this increase is melting away in the shadow of rapidly rising inflation. Even the inflation figures announced by TUIK are far from reflecting the real inflation that the public feels in the market and the bazaar. In an environment where real inflation is much higher, the hikes made remain nothing more than numerical makeup.

The increases made to pensions also display a similar picture. As of 2024, pensions are far from meeting basic needs. Retirees, let alone receiving the return for the labor they gave for years, are forced to look for a second job to sustain their lives. This situation clearly reveals how much the concept of a social state has weakened.

PURCHASING POWER: THE REAL CRISIS

In 2023, a 5-kilogram sack of flour was at a price level that could meet a family's basic needs, but today the price of the same flour has doubled. Electricity, natural gas, and water bills are like a black hole that swallows salary increases in one go. A minimum wage earner or a retiree has to allocate almost half of their salary just to basic expenses.

And what about food? Buying a kilo of meat, a carton of milk, or a pack of pasta has even become a luxury. This dramatic drop in purchasing power accelerates the impoverishment of the public and pushes large masses into debt.

SOCIAL EFFECTS OF WAGE IMPOVERISHMENT

Wage impoverishment is not only an economic issue but also a serious social problem. As people cannot meet their basic needs, they become psychologically worn out, domestic unrest increases, and social solidarity weakens. The rising unemployment and hopelessness, especially among the youth, trigger another wave of crisis that threatens the country's future.

WHERE IS THE SOLUTION?

To stop wage impoverishment, economic policies must first be fundamentally reviewed. Bringing inflation under control, reducing injustice in income distribution, and strengthening social state mechanisms could be the first steps of this process. However, these steps require not only economic but also political will.

As a result, no matter how high the hikes are, as long as purchasing power continues to decline, these hikes will remain nothing more than an illusion. Turkey's economic future depends on stopping wage impoverishment and ensuring that the public attains an income with which they can live humanely. Let us not forget, it is not numbers, but people's lives that are important.