Cem Boyner's take on high inflation: 'Spare the rod and spoil the child'

Boyner Holding Chairman and CEO Cem Boyner had previously made headlines with his proposal to eliminate cash and promote the widespread use of credit cards. In a program he attended, Boyner stated that citizens need to be integrated into the banking system, which would lead to better regulation of tax revenues and public finances in the country.

"WHO DOES INFLATION BENEFIT?"

Participating in a Bloomberg HT program, Boyner stated that the country is experiencing significant inflation and is facing serious fiscal inflation. Regarding inflation, Boyner said, "Who does inflation benefit? It benefits neither the tenant nor the landlord. It doesn't benefit the tradesman, it doesn't benefit the merchant. Inflation benefits no one, but I believe the economic management will lead the country out of this spiral."

Boyner used the following expressions in his speech:

"I think economic policy is moving on the right path without causing too much damage. When you are carrying out an important reform program and expecting sacrifice from the citizens, you need to answer three questions: How much hardship will I suffer, how long will I suffer this hardship, and am I the only one suffering this hardship?

When you talk about austerity, it brings you to this point of trade-offs; spare the rod and spoil the child. Whatever the administration, it will seek to cut public spending and reduce waste. It is not the right method to fail to do this, or do it minimally, and then say 'Citizens should not spend too much.' That is 'sparing the rod.' Economic administrations cannot apply this too much either. No one wants their citizens to suffer too much.

One must look at the cause-and-effect relationship... The founder of YKM used to sell goods on credit notes. We opened Beymen in Ankara in 1972. Bureaucrats wanted to dress well but didn't have enough money, so we sold on credit notes for years, then we met the Advantage card... We used cards instead of credit notes.

Our country is not a rich country; no one has a mountain of savings, everyone wants to improve their quality of life... Installments are a reality of our country. This is a part of our lives...

I gave the idea of eliminating cash with credit cards to explain the situation well. The more credit cards there are, the more the informal economy decreases. That is the ideal place to head toward. Credit cards are a good tool for increasing tax revenue and putting public finance in order. Cash is the source of many malfunctions in social life.

The credit card is not the issue itself; the main point is for the citizen to enter the banking system. No one is going to run out and shop just because they have a credit card. There is no such environment."