Mahfi Eğilmez: Economic Growth in Turkey Deepens Inequality, Middle Class at Risk
economy
Renowned economist Dr. Mahfi Eğilmez has warned that despite continued economic growth in Turkey, income inequality is worsening, and the middle class is rapidly vanishing—a trend he believes could pose serious risks to democracy.
In his latest blog post, Dr. Eğilmez examined the disconnect between growth and equality by challenging the Kuznets Curve Hypothesis, a classic economic theory by Nobel laureate Simon Kuznets, which claims that income inequality decreases as economies grow. Using official Turkish Statistical Institute (TÜİK) data, Eğilmez argued that this hypothesis does not hold true for Turkey.
Rising Gini Coefficient Despite Income Growth
While per capita income in Turkey has increased, the Gini coefficient—a key measure of inequality—has also climbed. According to Eğilmez, this indicates that economic growth alone is not enough to achieve fair income distribution.
“Growth does not automatically correct inequality,” he wrote.
Middle Class is Shrinking Fast
One of the most troubling outcomes, Eğilmez noted, is the dissolution of the middle class. He highlighted a growing income gap between the richest 20% and the poorest 20%, stating:
“A small portion of the middle class is moving upward, but a much larger segment is sliding downward. The middle class is slowly disappearing.”
This erosion is dangerous, he stressed, because the middle class is the cornerstone of both economic stability and democratic resilience.
“Inequality Won’t Fix Itself”
Eğilmez emphasized that income distribution won’t correct itself with growth alone. He called for state intervention to support wage earners, small entrepreneurs, and self-employed professionals—the core of the middle class.
“Correcting inequality is not a task to be left to economic development,” he stated.
“Governments must implement targeted policies to protect the middle class.”
“To Save Democracy, Protect the Middle Class”
In conclusion, Eğilmez issued a clear policy recommendation:
“To prevent the disappearance of the middle class and the drift of democracy toward extremes, the state must implement policies that support wage earners and entrepreneurs, ensuring a more balanced income distribution.”