'Profitability analysis' and the 'war impasse'

“The bourgeoisie cannot exist without constantly revolutionizing the instruments of production, and thereby the relations of production, and with them the whole relations of society,” says Karl Marx. War is the most radical of these radical changes he mentions. Especially in a hegemony competition that uses power relations as its tool, war is inevitable.

On one hand, providing cheap oil for years to the US's biggest economic rival (China), and on the other, constantly creating risks for Israel's geostrategy, resulted in Iran becoming a major target over the years. The oppressive stance of the autocratic regime in Iran, the execution of thousands of people, and the “perception of efforts to develop nuclear weapons” have been topics discussed in the world press for years.

The brutal slaughter of 168 innocent children in the first week of the war, while attempting to strike the Revolutionary Guards using artificial intelligence methods, will be judged not only in international law but also morally in human history. Thus, the US-Israel partnership, before the ink on the Epstein scandal had even dried, and while the umpteenth round of nuclear peace talks had just been held, became the central focus of hegemonic chaos with the attacks they launched.

The widest conflict zone since the Second World War has been created; millions of people in 34 countries are still living under threat.

EASY PROFIT AND RENT-SEEKING CONNOTATION

It would be useful to continue this by emphasizing the work in the publications of Assoc. Prof. Dr. Deniz Şişman, an academic economist working in the field of the defense industry, and stating that I have benefited greatly from them.

Our question is this: Well, while reaching this point, does the high profitability in war or the defense industry at the expense of other sectors have no role at all? We know that the weapons sold by the West in Russia's invasion of Ukraine have postponed the recession in the world through the war industry. Because when we say the arms industry, we are talking about a highly profitable sector that eliminates the redistribution weakness of the world system in energy.

Since states also benefit by both gaining power and through the taxes they collect, trillions of dollars flow into weapons in the world system. I don't want to call it a market, because there is not much competition in this sector. In a market where states are generally “monopsonistic buyers,” the demand problem is naturally eliminated.

We can also see this as an “area where capitalists abandon capitalism,” because it is a sector where a number of transnational corporate chains that have no demand or competition problems work hand in hand with the state.

Easy profit actually evokes rent-seeking. Relieving the System through commodities with limited supply, while also using science. They don't care about children anyway. An answer came to America's conscientious journalists; “we are investigating.” It is clear they are not investigating; they did it themselves. Let right-wing politics not look for a “conscience” in this environment. Because there are no limits to the immorality of capitalism in a power struggle.

As the famous Russian playwright and short story writer Anton Chekhov aptly identified, “if there is a gun (hanging on the wall) in a play, it must go off by the end of the play.”

That is exactly what is happening, but new games will always be on the agenda in the Middle East.

We are also curious about Iran's missile stockpile, as the one in Qatar is already depleted. These mean new orders for the arms industry. Iran's arms orders from Russia and China, and Qatar's from the US and the EU will increase... This unfortunately proves that there will be more demand for the arms industry...

Looking at it from Turkey's perspective, not being able to do what Spain did (conscientiousness) is linked to economic problems. Inflation in Spain is at the European average (2.3 percent), while Turkey, as is known, is at the top of the world inflation league.

Spain is also the one making a leap in renewable energy to overcome energy dependency. By reducing its foreign debt, it has reduced its dependence on the arms industry. Turkey's natural gas and oil needs exceed 80 percent of all energy consumption. We expect it to be negatively affected in the near future both by price increases and by the scarcity caused by the problems created in the Strait of Hormuz crossings and ship bombings. Because 1/5th of the world's oil passes through there.

For this reason, the fact that 75 percent of the increase in gasoline and diesel prices will be deducted from the SCT (Special Consumption Tax) with the “sliding scale” system in Turkey will strain the budget. However, it is an appropriate application. It is not the income of laborers and retirees that should be targeted to overcome the strain on the budget. In fact, a wealth tax is essential in the unfinished fiscal policy. For example, taxes on housing investors coming from abroad can be increased. Even the tax to be collected from those who buy additional housing for rental purposes can provide significant revenue here. France started implementing this as of yesterday.

IMPORT SUBSTITUTION IS ESSENTIAL

On the other hand, we know that rent income, especially from land, constitutes an important tax base. Adam Smith, who first drew attention to this issue in his book that went on sale this month 250 years ago, emphasizes that the rent income of the landowner should be in a way that does not put the wage earner and the farmer producing food for large settlements in a difficult situation. Smith thus took on the aristocratic class “without making it obvious,” but we cannot forget the fact that 30 percent of Great Britain's land belongs to aristocrats today.

I think Turkey should draw lessons from this issue; large land ownership rent should be questioned both in terms of food prices and against a possible war situation. I say “possible” because if 3 missiles have lost their way, there is always a smell of provocation. I hope humanity will get rid of this brutality, which we expect to last perhaps another month, with a cool head.

Returning to the arms industry, the 1.6 percent increase in exports last month came from there, but on the other hand, where the 30 percent increase in imports came from must be analyzed thoroughly. Is the “Carbon Border Adjustment Mechanism” causing problems in exports to the EU? Can new routes be found for goods that need to be exported to the Middle East in the created conflict environment? Cancellations by tour operators are at 30 percent for now, but is there an upward trend?

I want to say, “We must remember the foreign exchange income from tourism in reducing the current account deficit.” While on the subject: An industry and agricultural presence that substitutes for massive imports must be built. How wrong it is to leave reserves to the mercy of portfolio investments, which we call hot money, can be understood from the bank stock price drops in the stock market these days. Unless we implement an economic policy focused on egalitarian redistribution as much as possible, we will always return to the beginning.

All these are some of my reminders to the country regarding the fact that the current account deficit, which was relatively low last month, may follow a deceptive course.

* * *

While concluding the article, I learned that we have lost our country's great historian, Prof. İlber Ortaylı. My condolences to our nation, the scientific community, and his family. His books and statements will be a guide.

The final word has already been said by our founder Mustafa Kemal Atatürk: “Peace at home, peace in the world!”