Opinion – Maria Inês Dolci: Consumption depends on social mobility

Real Plan, minimum wage increases above inflation and income transfer plans for the most vulnerable made more than half of the Brazilian population reach the C class in 2014, that is, the middle class. With the eventual return of these government practices, Brazil could once again be the ‘class C country’. I miss dealing with consumer protection issues, not lack of consumption.

Industry and services will have to adapt to this demand, which positively influences all productive areas. And prepare to produce for the poorest population as well, with education for consumption. For example, so that they stay away from over-indebtedness.

The high prices of the basic food basket will have to be fought with public policies, such as incentives for family farming and regulatory stocks, which help to reduce the inflation that takes food off the plate.
If the most vulnerable families rise socially, it will have a positive ripple effect at all income levels. Formal unemployment will fall, and tax collections will increase.

But if this seems like a magic touch, why isn’t it done by all governments? Good question. We note that some measures adopted on the verge of the election reduced inflation and unemployment, without lowering the prices of the basic food basket.

Such measures should not be adopted only by those who intend to be re-elected. Otherwise, they have a short shelf life.

In the third quarter of this year, household consumption increased by 5.6% compared to the same period in 2021. However, it fell in September compared to August.

It is likely that the payment of the 13th salary, Black Friday, Christmas shopping and the New Year will still have a positive impact on this scenario. If, however, there are no measures to reinvigorate the purchasing power of the poorest, consumption will remain blocked.

Good programs that were working should be maintained. Administrative discontinuity, common in Brazil, affects the development of several important segments.

I am not an economist or a government official. I agree that the public deficit should not be increased indefinitely. But, without a doubt, it is also not possible to simply turn a blind eye to misery, hunger, unemployment and income flattening.

If the PEC (Proposal for Amendment to the Constitution) proposed by the transitional cabinet –or a similar initiative– improves the situation of the most socially vulnerable and boosts the economy, the leaky roof could be covered by other measures. And we will cease to be a good country only for a more fortunate minority.