ARTICLE – ACSP

Brazil has a way out, but not through populism

The economic challenges faced by Brazil are increasingly acute, and any expectation of improvement in the scenario is distant. Fiscal policy does not reflect the reality of the country. Every day, we are negatively surprised by populist measures imposed by the government.

The rise in interest rates, which has directly impacted retail performance and, consequently, employability, is a consequence of the policy of increasing public spending and excessive taxation, encouraged by this populist agenda completely focused on the State, and which has a negative impact on investor confidence.

Measures sanctioned in a hurry, aiming only at political interests and those of big business, such as the Tax Reform, which will have serious negative impacts on small entrepreneurs in the medium and long term, do not contribute to growth by marginalizing the large mass of entrepreneurs, the micro and small business owners sheltered in the SIMPLES.

With the Selic rate rising, purchasing power decreases and retail loses out. However, maintaining this interest rate policy is essential to control inflation and stabilize the currency. Without a cohesive fiscal policy focused on the long term, the result will be recession.

I believe in the improvement of the Brazilian economic scenario, but this will only be possible through fiscal and economic policies that increase productivity to make the Brazilian economy solid and competitive.

Fonte: Eletrolar News Ed. 166