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    Your email address will not be published.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

    4,000 Soldiers Ready for Action in the Amazon After Nun’s Slaying

    General Jairo César Nass, who is in charge of the military operation in the ...

    UK vs Brazil

    UK Retakes from Brazil Title of World’s 6th Largest Economy

    Despite recession and the poor performance Britain has clawed back the ground it lost ...

    How Brazilians Learned How to Put the Sweet in Melon

    Yellow tones are part of the landscape of the Northeast of Brazil, a sunny ...

    First Quarter Earnings Reports Drive Brazilian Stocks to Record Day

    Latin American stocks advanced, with Brazilian shares getting a boost from optimism about local ...

    Brasileirinho: US Gets a Whiff of Brazilian Choro

    "The Sound of Rio," a 90-minute musical documentary film on choro, the first genuinely ...

    Brazilian Dam Victims Camping in the Gardens of ID Bank

    The families of the Movement of Dam Victims (MAB) will remain camped outside the ...

    Sudan

    Darfur – Brazil’s African Side Show

    President Luiz Inácio Lula da Silva has made Africa an important part of his ...

    IMF Urges Brazil to Liberalize Foreign Trade and Market Rules

    Brazil’s economic policy warranted kudos from one of the world’s major financial institutions, the ...

    7 the Musical

    A Brazilian Fairy-Tale Musical Comes to the Rio Stage. Can Broadway Be Far Behind?

    Over the past few seasons there has been an explosion of films, television series, ...

    Brazilian composer Antonio Carlos Gomes

    Brazil’s Greatest Classical Composer Was Never More than a Salieri

    There were several false starts at presenting staged opera in Brazil during the late ...