Daron Acemoğlu explains the reason for the deterioration in income distribution: 'It is creating an unequal world'

The "From the Heart of the Economy to the Center of Finance: From Şişli to Ataşehir Conference" was held at the Haliç Congress Center. The conference was hosted by Şişli Mayor Resul Emrah Şahan and Ataşehir Mayor Onursal Adıgüzel.

The speakers at the conference included Nobel laureate economist Prof. Dr. Daron Acemoğlu and Istanbul Metropolitan Municipality Mayor Ekrem İmamoğlu.

The event was attended by CHP Deputy Chairman Gökhan Zeybek, CHP Istanbul Provincial Chairman Özgür Çelik, Kadıköy Mayor Mesut Kösedağı, and Sarıyer Mayor Oktay Aksu, as well as prominent figures from the world of economics and non-governmental organizations.

Speaking at the event, Ekrem İmamoğlu shared striking figures describing Istanbul's economic scale on a national and global level, stating in summary:

"Istanbul, which has managed to be one of the world's leading centers of trade, education, and innovation for centuries, is undergoing a rapid structural transformation in order not to miss the opportunities that have arisen in recent years. With its multi-faceted international networks, it is taking strong steps to create a modern urban economy in this city, perhaps in a way that places our Istanbul at its core, at its center. Thanks to many innovative sectors, including those in the knowledge base and clusters in high value-added sectors, the city economy possesses a diversity with an infrastructure that is quite attractive for entrepreneurs and investors. Istanbul is, and must be, Turkey's gateway to the world with its innovative and creative economy that produces high value-added. Of course, we are not yet satisfied or pleased with the current environment and position. We must reach higher levels."

"INCOME DISTRIBUTION IS DETERIORATING BECAUSE WAGES ARE NOT GROWING"

Prof. Dr. Daron Acemoğlu answered questions from journalist Deniz Bayramoğlu in a special session titled "New Dynamics of Urban Economies." In his speech, Acemoğlu made assessments regarding the Turkish and global economy. Acemoğlu stated that the word that will best summarize the coming years in the world is uncertainty.

Acemoğlu said, "An uncertain world awaits. Because we are in the midst of structural changes, both in terms of geopolitics and inflation, and more importantly. Some of these create opportunities, some provide different possibilities. But at the same time, they increase uncertainty.

At the forefront of these is the productivity problem. America and Europe are in a bad state. Turkey is in a much worse state. If you look at the last 15 years, or even longer, 25-30 years, the productivity of these economies is low. What they produce is not at its old pace.

It is creating a more unequal world. Wages are not growing. Because wages are not growing, income distribution is deteriorating further. All of these are related to productivity and efficiency problems," he assessed.