Make up your minds: Are companies making huge profits or going bankrupt?

In society, there are two groups that always try to gain something from every situation. One is the opposition, and the other is the so-called social media commentators.

The first group, the opposition, behaves as if what they said yesterday is no longer on record, boldly expressing ideas contrary to their previous statements and even having the audacity to claim, “Didn’t I say this?” For instance, look at recent developments in the economy. While a loose monetary policy was being pursued, they called for tight monetary policy and an increase in interest rates everywhere. Yet, when the government eventually adopts this policy, they act surprised, claiming that increased unemployment and a stagnant market are new issues, presenting the natural outcomes of tight monetary policy as if they were unexpected.

The so-called social media commentators are just the same. They’ll go to any lengths to gain followers! Changing their stance from what they said yesterday to the opposite today has become their basic way of grabbing attention and appearing unique. They always claim they have a better idea and that no one knows this better than them.

These groups rely on second-hand information and rumors about the economy to make popular and provocative statements. Yesterday, they defended tight monetary policy, and today, they complain about high interest rates as their new objective.

The latest topic of their flip-flopping is whether companies are making exorbitant profits or going bankrupt. Recently, they reached new heights of audacity. Just a month ago, when companies announced their profits, they claimed that inflation was caused by high margins and excessive profits. Yet, just a month later, they’re now saying that companies are going bankrupt, facing insolvencies, and what will happen to these companies.

Just a couple of months ago, weren’t you the one advocating for a “wealth tax” on companies, claiming that profit margins were too high and that opportunistic margins were emerging?

As I read through the comments, I’m genuinely astonished by this group's ability to do a complete 180 in just a couple of months.

What’s the reality here? The economy is not just a way of thinking; it’s a cycle. Just like in the natural flow of life, you can’t always grow or move quickly; sometimes you need to rest, recover, and regain strength. Sometimes, you need to move quickly. None of these actions last forever. They may be long or short, but these cycles happen one after another.

When tight monetary policy becomes necessary, it’s known that its outcomes will include more subdued economic activity and negative effects on employment. In fact, this is the main purpose: to lower the tension.

It’s clear that a tight monetary policy won’t produce rapid economic growth or a quick rise in employment in the short term. To suggest otherwise is to mock people’s intelligence.

To present the natural outcomes of a situation just to gain followers or for political opposition is absurd. Türkiye, given the current conditions, has entered a period of tight monetary policy. Of course, this period will come with challenges, but these challenges do not encompass everything.

Companies that have been growing and building capital for years shouldn’t be declaring that they’re done and dusted within one to one and a half years. This only reflects their narrow perspective, not the realities of the economy!

Moving towards export-oriented and value-added production policies, rather than consumption-based and credit expansion-driven growth, is not a need but a necessity for Türkiye. Ignoring the new technologies and programs announced by the government that aim to build an industrial infrastructure and only focusing on the challenges of tight monetary policy is not an objective stance.

Let’s not forget: every company contributing to exports and industrial production should be supported even under tight monetary policy conditions. Resources should be allocated to those who create value.

However, we should not allow ourselves to be burdened by those who have become accustomed to excess in retail and consumption and who operate with inefficient models.

We are going through a period where everyone needs to question the efficiency and added value of their work. Those who delve into the details of their work, enhance it with new ideas, and strive to do better will survive.