The richest have never been so rich

TURKISH STATISTICAL INSTIɓ

(TurkStat) announced the TUTE

income distribution statistics made last year, showing the situation in 2021. We saw that the situation is exactly as in the title; it is fantastic! But for whom, that’s a separate issue...

In summary, the income of the poorest 40% does not change significantly, they continue to be poor.

Those between 40% and 95% in the ranking of their share of income suffered losses. The richest 5% achieved unprecedented income growth in terms of change from year to year.

The share of the wealthiest 5% of households in income increased to 23.3% in 2021. When the 2005-2020 period is examined, such a ratio has never been seen. The richest have never been this rich!

The share of the richest 5% of the income pyramid is 21.1% in 2005-2020 and 21.3% in 2020. It increases to 23.3% in 2021.

The richest 5% of households got even richer in 2021, but there is a shift from other segments, which have become impoverished so such a transition has taken place. Let’s have a look…

► The share the top 20% is

getting from the income is 5.9% in the 2005-2020 average. Then it rose to 6% in 2021. So, there is no change.

► The share of the second 20% is 10.6%, in line with the 2005-2020 average. Then it gets 10.4% in 2021. So, there is no significant change in this group either.

► The difference becomes more evident in the third 20% of households’ income ranking. This 20% receives an average of 15.1% of income in 2005-2020 and 14.7% in 2021.

► The divergence increases even more in the fourth 20%. The share of this segment, which was 21.5% in 2005-2020, decreased to 20.9% in 2021.

► And we come to the richest 20%. While the share of this group in total income was 46.9% in the 2005-2020 average, it increased to 48% in 2021. However, the situation of the 5% segments of this group is interesting. There is a decrease in the share of the 17th, 18th, and 19th 5% segments. The share of these groups is decreasing compared to 2020 and the 20052020 average. But the share of the last 5% has increased by exactly 2.2 points. Such a move is out of the question for any 5% group.

The share of the top 40% of total income is almost the same. Income loss starts above 40% and continues up to the 95% segment.

These data are a concrete indicator that the middle class is disappearing.

The 2021 data point even further. It is now beyond the disappearance of the middle class. Those who are relatively rich have also started to become poor. This is evident.

Look, only the last ring of even the richest 20% got richer, and the share of the previous ones decreased.

WHAT WOULD BE THE SITUATION IN 2022?

I stated that these data reveal the situation in 2021 with the survey conducted in 2022. I wonder what the situation was in 2022, when inflation reached 85% even according to the official data, and food inflation rose much higher...

There is no doubt that a much worse picture has emerged than in 2021.