No to recession and unemployment in brazil
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The document critiques Brazil's PEC 241 constitutional amendment, which limits public spending to prior year levels adjusted for inflation, arguing it will exacerbate economic stagnation and unemployment. The author, Fernando Alcoforado, contends that effective fiscal adjustment requires increased public revenue through taxation and reduced government spending, rather than the ineffective measures currently being implemented. Alcoforado emphasizes the need for a comprehensive strategy to stimulate economic growth and development in Brazil.
No to recession and unemployment in brazil
- 1. NO TO RECESSION AND UNEMPLOYMENT IN BRAZIL Fernando Alcoforado * The measures proposed in amendment to the Brazilian Constitution project (PEC 241) define new limit for public spending which will have as limit the prior year spending adjusted for inflation and this fact will make public spending be frozen in real terms going to be only adjusted for inflation. The PEC 241 is of primary expenditure, ie excluding government spending with the payment of interest and amortization of public debt, real reason of the public deficit. Brazil is faced at present with the failure of the neoliberal and antinational economic model implemented since 1990 by the Fernando Collor, Itamar Franco, Fernando Henrique Cardoso, Lula, Dilma Rousseff and Michel Temer governments. There is no prospect of overcoming these problems given that the Michel Temer government decided to adopt an ineffective fiscal adjustment (PEC 241) which will result in the stagnation of the economy and further escalation of unemployment and not formulated a plan for the retake of development of the country. The real fiscal adjustment should include, on the one hand, the increase in public revenues with the taxation of large fortunes that could yield about 100 billion Reais per year and raising the tax on banks. In addition, the federal government should also reduce their spending on the reduction of ministries and government expenditures, the reduction of the basic interest rate of the economy (Selic) to decrease the size of the public debt and the burden of interest payments and renegotiation with creditors to reduce the burden of payment of the public debt which consumes now about 45% of the Brazilian government budget. It should be noted that with low consumption, low investment and low government spending, the economy tends to further deepen the recession and make harder Brazil to return to economic growth. In addition to promoting a timid fiscal adjustment that tends to deepen existing economic stagnation in Brazil, Michel Temer government did not adopt measures to contribute to the retaking of development in Brazil. *Fernando Alcoforado, 76, membro da Academia Baiana de Educação, engenheiro e doutor em Planejamento Territorial e Desenvolvimento Regional pela Universidade de Barcelona, professor universitário e consultor nas áreas de planejamento estratégico, planejamento empresarial, planejamento regional e planejamento de sistemas energéticos, é autor dos livros Globalização (Editora Nobel, São Paulo, 1997), De Collor a FHC- O Brasil e a Nova (Des)ordem Mundial (Editora Nobel, São Paulo, 1998), Um Projeto para o Brasil (Editora Nobel, São Paulo, 2000), Os condicionantes do desenvolvimento do Estado da Bahia (Tese de doutorado. Universidade de Barcelona,http://www.tesisenred.net/handle/10803/1944, 2003), Globalização e Desenvolvimento (Editora Nobel, São Paulo, 2006), Bahia- Desenvolvimento do Século XVI ao Século XX e Objetivos Estratégicos na Era Contemporânea (EGBA, Salvador, 2008), The Necessary Conditions of the Economic and Social Development- The Case of the State of Bahia (VDM Verlag Dr. Müller Aktiengesellschaft & Co. KG, Saarbrücken, Germany, 2010), Aquecimento Global e Catástrofe Planetária (P&A Gráfica e Editora, Salvador, 2010), Amazônia Sustentável- Para o progresso do Brasil e combate ao aquecimento global (Viena- Editora e Gráfica, Santa Cruz do Rio Pardo, São Paulo, 2011), Os Fatores Condicionantes do Desenvolvimento Econômico e Social (Editora CRV, Curitiba, 2012), Energia no Mundo e no Brasil- Energia e Mudança Climática Catastrófica no Século XXI (Editora CRV, Curitiba, 2015) e As Grandes Revoluções Científicas, Econômicas e Sociais que Mudaram o Mundo (Editora CRV, Curitiba, 2016). Possui blog na Internet (http://fernando.alcoforado.zip.net). E-mail: [email protected].