• Categories
  • Archives

Brazil Counting on New Minimum Wage for Economic Boom

The minimum wage in Brazil will be raised in May from US$ 96 (260 reais) to US$ 110 (300 reais). The result could be a US$ 7.3 billion (20 billion reais) increase in Brazil’s domestic consumption.

This is a calculation made by Márcio Pochmann, professor of Economics at the University of Campinas (Unicamp) and ex-Secretary of Development, Labor, and Solidarity of the São Paulo Municipal Government.

According to Pochmann, each increment of US$ 0.37 (1 real) in the minimum wage represents an additional US$ 184 million (500 million reais) in domestic consumption.

“This has a direct impact on sectors such as shoe manufacturing, foodstuffs, and transportation, and, as a result, because these activities imply tax payments, the public coffers end up getting back part of the money that the government set aside for salary payments,” Pochmann affirmed.

According to the president of the Brazilian Consumer Defense Association, Gilberto Luiz do Amaral, the Federal Treasury gets back 40% of the total amount of capital injected into the economy, through tax collections.

“The balance is positive for the country as a whole, because the minimum wage is an essential factor in dealing with the country’s poverty, and, even more, whenever the minimum wage goes up, there is a hope of reducing the country’s income disparities, which are very great in Brazil,” Amaral declared.

Translation: David Silberstein
Agência Brasil


  • Show Comments (1)

  • Guest

    12 Proposals
    Why is “Twelve Proposals for Another Possible World” not being disseminated? Where is the document?

    We, some of us, have created the Global Indymedia Network. I, personally, have said repeatedly that we (the movement) fail because at key moments a certain number of “crdible” individuals do the precisely wrong thing.

    Opportunists are sophisticated in the methods they use to steer history onto the rocks.

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.


You May Also Like

Brazil Industry’s Installed Capacity Up, But Still 3% Below Last Year

For the fourth month in a row, the use of installed capacity by the ...

Colin Powell Visits Brazil, But Why?

I recently took the presumptuous step on behalf of the Brazilian people of inviting ...

Lula and Chí¡vez Go Ahead with Brazil-Venezuela Gas Pipeline

The presidents of Brazil, Luiz Inácio Lula da Silva, and of Venezuela, Hugo Chávez, ...

Brazil Petrobras’s Production Grows 10% to 2.3 Million Barrels a Day

Brazil’s state-owned Petrobras’s domestic production of petroleum and gas attained a daily average of ...

Uncertainty (35%), Falling Sales (28%) Main Complaints of Brazil’s Small Industry

Brazil's Union of Micro and Small Industries of the State of São Paulo (Simpi) ...

Brazil Wants a Cultural Mercosur

Brazil’s President in Office, José Alencar, said that the Mercosur integration should also contemplate ...

Brazil’s Approach and Help Applauded in Africa

The president of Brazil, Luiz Inácio Lula da Silva, is on a trip to ...

Rio’s Holiest View

Faced with the PT’s fine standing after the first round the international press may ...

Royal Road: A Walk Into Brazil’s Infancy

Glenn Cheney spent two months walking alone on the Estrada Real in Minas Gerais, ...

Presidential Hopeful Marina Vows to Restore Brazil Credibility and Recruit Brightest Minds

Opposition Brazilian presidential candidate Marina Silva said that Brazil’s recession is very worrying and ...