Instead of Waiting to Grow to Share Brazil Is Sharing to Grow, Says Lula

Conventional wisdom has it that you grow in order to distribute income. According to Brazilian President Luiz Inácio Lula da Silva, speaking on his weekly radio program, "Breakfast with the President" (Café com o Presidente), his administration has inverted the logic of the growth/distribution equation and is using social assistance programs to distribute income so the country can grow.

"Contrary to what they say, instead of waiting for growth so we can improve income distribution, we are distributing income so we can grow," said the president.

Lula cited the recent increase in the country’s minimum wage (up from US$ 138 to US$ 161) and the government’s family assistance program (Bolsa Famí­lia, Family Voucher) as examples of mechanisms that do not only promote social justice but create economical dynamics, as well. According to the president the rise in the minimum wage will inject US$ 6.9 billion in the economy.

Lula also pointed out that his administration negotiated with unions regarding the new minimum wage, something that had not taken place since 1964.

"Brazilian unions are mature. They know that a real increase of 13% with inflation at 4.5% is a good deal," concluded the president.

According to Lula, the increase of the country’s minimum wage would mean more food on Brazilian’s dinner tables.

"When we took office, the minimum wage could purchase 1.3 basic needs baskets (cestas básicas). Today the new minimum wage can buy a little more than two basic needs baskets – 2.2 of them, in fact…. That means the wage earner is taking home more food and his children are eating better," said the president.

Lula pointed out that the minimum wage was made law through a presidential decree because the Congress had been unable to vote on the measure.

Agência Brasil

Tags:

  • Show Comments (1)

  • Guest

    US$ 6.9 billions ?
    the cost of the increase in the minimu wage is
    Reais 5.2 billions and not US$ 5.9 billions as Lula pretends.
    At least this is what the government published here and there not so long ago.
    That makes quite an unexplained difference….once more.

Your email address will not be published.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.

Ads

You May Also Like

Internet Opens New Markets for Brazil Overseas

The Internet has become an important tool for Brazilian exporters. Small, medium and large ...

A Cambridge PhD and the Heir to Brazil’s Biggest Bank Among Marina Silva’s Advisors

Two economists with graduate studies in Cambridge and Massachusetts Institute of Technology, a lawyer ...

BahiaExport, a Portal for Those Willing to Buy Brazil

Industry Utiara, from São Gonçalo dos Campos, in the state of Bahia, in northeastern ...

Super Cautious, Brazil’s Chancellor Says Ball Is at EU’s Court

Progress in trade talks at the 6th Ministerial Meeting of the World Trade Organization ...

Brazil Software Exports Triple to Paltry US$ 314 Million

Brazilian software export tripled in three years, rising from US$ 100 million in 2002, ...

Rio’s Christ the Redeemer, One of the Modern World’s 7 Wonders, Is 80

On October 12, the same day Brazilian Catholics honored their patron saint, Nossa Senhora ...

With Expected Stampede from Main Ally Today, Brazil President Wouldn’t Be Able to Avoid Impeachment

The government of Brazilian president Dilma Rousseff, her mentor Luiz Inácio Lula da Silva ...

Brazil and Argentina Vow Strong Trade Links, But Keep Fighting over Licenses

The governments of Brazil and Argentina are discussing the possibility of reducing the number ...

Best-seller books, plays & movies

PLAYS Alô? Madame!… — It all starts when two friends get a phone number ...

Brazil’s Industrial Capacity Nearing Its Limit

Brazilian market analysts and financial consultants interviewed last week by Brazil’s Central Bank expressed ...