PT program does not say how policies will be supported, criticize economists

The new preview of the government program of ex-president Luiz Inácio Lula da Silva (PT) recycles economic policies already adopted by PT administrations and does not make it clear which are the sources of financing to pay for them, in the opinion of economists interviewed by the Sheet.

The proposal surprised by the unorthodox tone, with the rescue of shares that did not give good results, evaluates an economist of a fund manager who asked not to be identified.

Despite considering the retreat regarding the repeal of the labor reform to be a positive point, the manager believes that more information is lacking on the replacement of the spending ceiling and criticizes the forecast of using public banks to solve the problem of family indebtedness and forcing private institutions to cut interest rates, in addition to fighting inflation through intervention in fuel prices and sectoral controls.

For the manager, there seems to be a competition between the Jair Bolsonaro government (PL) and the PT to see who proposes the worst economic policies. If even Minister Paulo Guedes (Economy), seen as a bastion of liberalism, is accepting more heterodox policies, the PT would have no incentive to propose something in the opposite direction, he says.

Marco Antonio Rocha, professor at Unicamp’s Institute of Economics, says that the program is in line with economic policies after the pandemic that have been adopted by large developed economies. In the Brazilian case, however, it remains to be defined where the resources would come from to finance all the expenses necessary to rebuild public policies already adopted in other PT administrations.

The Unicamp professor, who did not participate in the elaboration of the PT document, also says that only the taxation of the richest, with the creation of a more progressive tax structure, is not enough to fund all the proposed policies. Therefore, it will be necessary to wait for details on the proposal to replace the spending ceiling with another fiscal rule.

“This is what is lacking in relation to these programs that we are seeing in Europe, the US, etc. in the post-Covid period. Everyone predicts very robust figures for these challenges. get off the paper [no Brasil]”, says Rock.

Juliana Inhasz, a professor at Insper, says she sees a contradiction in wanting to attract investments to generate economic growth and, at the same time, propose an increase in the fiscal crisis that prevents the private sector from expanding its operations in the country.

She also points out that there are no sources of funding for the proposed policies and evaluates the program as something that aims to win an election, and not solve the country’s situation. For Juliana, there are no new proposals, but a reissue of former president Lula’s previous government plans.

“The plan shows an evident need to create space for greater production, more growth, but he does not realize that this reduction in supply is caused today by the fiscal crisis itself, which he proposes to widen”, he says.

Retraction in the repeal of the labor reform is natural, say centrals

Representatives of trade union centrals reacted naturally to the retreat made regarding the repeal of the labor reform.

According to a document presented this Tuesday (21), in the presence of the former president and his pre-candidate for vice, former governor Geraldo Alckmin (PSB), the campaign softened the original proposal to overturn the reform.

The expression “repeal”, which appeared in a previous version of the text, was diluted and now the proposal foresees to revoke only “the most regressive milestones of the current legislation”.

In a possible new PT government, the preview of the program defends “a new labor legislation of extensive social protection to all forms of occupation, employment and work relationship”.

He also points out the need to repeal what he calls “regressive milestones in the current labor legislation, aggravated by the latest reform” and the need to restore free access to labor justice.

The text also emphasizes that special attention will be given to self-employed workers, self-employed workers, domestic workers and those who depend on apps and platforms.

According to the president of Força Sindical, Miguel Torres, the document is within the proposal made by the union centrals. “It was already pacified by the centrals that it was necessary to review and not revoke [a reforma].”

He says that the centrals are considering as a starting point the experience of Spain, “which after much discussion and work, managed to review points of the reform in a consensus between workers, businessmen, government and Congress. This dialogue with the union movement is important for us,” he says.

He adds that it is necessary to review points considered worn out in the relationship between capital and work. There are a number of demands —such as the issue of intermittent work, outsourcing and pejotization—that must be discussed, he says.

“The business community itself sees the need for dialogue, and the idea of ​​the future government plan is to work on this discussion chamber. The best of all worlds would be to revoke everything, but we are not in a position to do that.”

Removing the expression “revoke” from the text does not weaken it, on the contrary, says Ricardo Patah, from UGT (União Geral dos Trabalhadores). “This issue of repeal gave the wrong impression that we wanted to go back to what it was before and we don’t want that. We have to debate the employment and unionism of the future, the pandemic boosted the fourth industrial revolution, the change was brutal, including with apps .”

“The union tax is dead, but we can allow the worker to decide in the assembly that he can contribute and how much he wants to contribute, it will depend on the worker’s will”, he adds.

The text reinforces that the new government will respect union autonomy, “with the aim of encouraging collective negotiations, promoting an agile solution to conflicts, guaranteeing labor rights, guaranteeing the right to strike and curbing anti-union practices. democratic union structure.”

The pre-program also emphasizes the need to resume policies to value the minimum wage “aimed at recovering the purchasing power of workers (…), essential to boost the economy, especially in small municipalities”.

Patah recalls that the text brings up extremely important points, such as the fight against hunger, job creation and economic growth, making it clear that, through the internet, anyone who registers can make suggestions.

The change in tone on the issue of labor reform is a sensitive point between the PT pre-candidacy and the business community.

“It seems that the project has improved, as the mention of the [revogação da] labor reform and emphasized freedom of the press. The problem is whether all this is for real or not”, says Ricardo Roldão, president of Roldão Atacadista.

There is no doubt that the proposal presented now has a more moderate tone, in an attempt to bring forces from the center of politics and sectors of the business community to Lula’s pre-candidacy, evaluates Carlos Eduardo Ambiel, a doctor of law at USP and professor at the Faap.

He adds that just repealing the 2017 labor reform would be bad. “The new program proposal thinks of legislation for all workers, not only those who are employed with a formal contract, but also the self-employed, the self-employed, the platform worker and hybrid work itself.”

See points of the proposal that deal with the labor issue:

Application workers and access to justice

“The new government will propose, based on a broad debate and negotiation, a new labor legislation of extensive social protection to all forms of occupation, employment and work relationship, with special attention to the self-employed, to those who work on account workers and domestic workers, telework and home office workers, mediated by apps and platforms, revoking the regressive milestones of the current labor legislation, aggravated by the latest reform and reestablishing free access to labor justice.”

Unions and negotiations between employers and workers

“The new government will encourage debate and initiatives for union restructuring, which democratize the system of labor relations in the public sector and in the private, urban and rural sector, will respect union autonomy, aiming to encourage collective bargaining, promote agile resolution of conflicts , guarantee labor rights, ensure the right to strike and curb anti-union practices. Decisions on solidarity and democratic funding of the union structure will also be respected.”

Employment and entrepreneurship

“Brazil needs to create work and employment opportunities. For this, we propose the resumption of investments in infrastructure and housing; national reindustrialization on new technological and environmental bases; agrarian reform and stimulus to the solidarity economy, to the creative economy and to the inclusive green economy, based on the conservation, restoration and sustainable use of our biodiversity. It must also extend support to cooperativism, entrepreneurship and micro and small companies.”

Valuation of the minimum wage

“We will resume the policy of valuing the minimum wage with a view to recovering the purchasing power of workers, and beneficiaries of social security and assistance policies, essential to boost the economy, especially in small municipalities.”