Brazil in crisis - Bolsopedia: A enciclopédia do Bolsonarismo

BRAZIL IN CRISIS – HOW BOLSONARO AND PAULO GUEDES MADE THE COUNTRY POORER

EVERYTHING HAS BEEN EXPENSIVE SINCE BEFORE THE PANDEMIC. AND UNDER BOLSONARO, BRAZIL HAD ONE OF THE WORLD’S HIGHEST INFLATION RATES
 
IT’S BOLSONARO AND PAULO GUEDES’S FAULT, AS THEY ACTED TO INCREASE THE VALUE OF THE DOLLAR AND DEVALUE THE REAL. WHEN THE DOLLAR RATE IS HIGH, EVERYTHING BECOMES MORE EXPENSIVE
 
BRAZIL HAD A TOOL TO PREVENT FOOD PRICES FROM RISING: BUFFER STOCKS. INSTEAD OF USING THEM DURING THE PANDEMIC, BOLSONARO EMPTIED THEM
 
THE TRUTH ABOUT THE EMERGENCY FINANCIAL AID, AUXÍLIO BRASIL, AND OTHER WELFARE PROGRAMS: BOLSONARO HAS ALWAYS CRITICIZED BOLSA FAMÍLIA, AND WAS AGAINST THE BRL 600 FINANCIAL AID PROPOSED BY THE OPPOSITION 
 
NEITHER PEOPLE’S LIVES NOR THE ECONOMY. BOLSONARO BOYCOTTED THE FIGHT AGAINST THE VIRUS, CLAIMING HE WAS "DEFENDING THE ECONOMY." AS A RESULT, TODAY, BRAZIL HAS THE HIGHEST DEATH TOLL IN THE PANDEMIC AMONG G20 COUNTRIES AND IS FACING ITS BIGGEST ECONOMIC CRISIS IN DECADES 
 
HUNGER IS BACK

1. EVERYTHING HAS BEEN EXPENSIVE SINCE BEFORE THE PANDEMIC. AND UNDER BOLSONARO, BRAZIL HAD ONE OF THE WORLD’S HIGHEST INFLATION RATES

Bolsonaro constantly blames the pandemic for inflation in the country, but prices have already risen since 2019. Bolsonaro's constant attacks on the democratic order and his disastrous handling of the pandemic have led the country into an unprecedented economic crisis. Today, Brazil has one of the highest inflations in the G20, the highest in almost 30 years. The people ran out of money to buy food and began to purchase gas cylinders in installments.
Since meat is expensive, Bolsonaro suggests: "Buy 1kg of mullet and get 1 tubaína" (UOL, December 2019)
Official inflation ends 2019 at 4.13% and is above the center of the target (G1 Economia, January 2020)
Meat prices rose 32.4% in 2019 (Congresso em Foco, January 2020)
IPCA: meat price was responsible for the increase in inflation in 2019 (Agência Brasil, January 2020)
Beans, rice, and meat: the essential meal becomes 43.4% more expensive in 2020 (Correio do Povo, February 2021)
Inflation has already almost doubled in comparison to what was recorded in Guedes' 1st year (R7, October 2021)
Inflation in Brazil is the 3rd highest among the main economies in the world. The ranking shows price variation in the national territory in 2021, and Brazil is only behind Argentina and Turkey (R7, January 2022)
In three years, the food basket is 48% more expensive, and items rise by up to 153%. The increase in prices in the group of essential foods for Brazilians was twice the inflation accumulated in the same period. (R7, March 2022)
The cost of cooking gas reaches BRL 150, and resellers pay containers in installments in São Paulo. (Folha de S. Paulo, March 2022)
Brazil recorded in March the highest inflation in 28 years. Prices rose 11.30% in the last 12 months (Agência Brasil, March 2022)
With accelerated inflation, Brazilians have lost achievements from the Real Plan (Estadão, April 2022)
Brazil recorded the highest inflation of the last 26 years in April (G1, May 2022)
The increase in food prices impacts the purchasing power of the minimum wage (Valor Investe, August de 2022)
Brazil has the 4th highest inflation among major economies (Folha, August de 2022)

2. IT’S BOLSONARO AND PAULO GUEDES’S FAULT, AS THEY ACTED TO INCREASE THE VALUE OF THE DOLLAR AND DEVALUE THE REAL. WHEN THE DOLLAR RATE IS HIGH, EVERYTHING BECOMES MORE EXPENSIVE 

One of the leading causes of inflation in the country is the high dollar rate (wheat, rice, meat, gasoline, and coffee prices are quoted in dollars). Bolsonaro, through his constant attacks on democracy and Paulo Guedes, promoted the devaluation of the real and kept the dollar expensive throughout his entire administration. Guedes himself stated several times that the depreciation of the real was deliberate. And who benefits from that? Paulo Guedes, his offshore company, and half a dozen agribusiness exporters create very few jobs and benefit from the skyrocketing dollar rate. Meanwhile, the Brazilian people, who have become penniless, go hungry in Brazil.
 
Dollar rate on 04/Jan/2019: BRL 3.71
The dollar rate is record-high in the Bolsonaro administration, and BC acts to contain the increase (Correio Braziliense, May  2019)
The dollar rate exceeds BRL 4.18 and reached 2nd highest value since the creation of the real (Poder 360, November 2019)
“It's best to get used to a higher exchange rate for a long time,” says Guedes (Estadão, November 2019)
Guedes' statements cause the dollar rate to hit a record high (Correio Braziliense, November 2019)
Dollar rate on 03/Jan/2020: BRL 4.07
In 2019, Brazil recorded the highest dollar outflow in the last 38 years. (Poder 360, January 2020)
Guedes, about the high dollar rate: "domestic workers were going to Disney; it was a party" (Valor, February 2020)
If I do many stupid things, the dollar can go to BRL 5, says Guedes. (Valor, March 2020)
The dollar closes above BRL 5.00 for the first time in history (Folha, March 2020)
Real is the worst-performing currency in the world in 2020 (G1, October 2020)
Dollar rate on 01/Jan/2021: BRL 5.19
The real is the most depreciated currency among emerging countries during the pandemic. (iG, April 2021)
Dollar appreciation puts pressure on inflation and makes consumer items more expensive (Correio Braziliense, September 2021)
Real is among the 40 currencies with the worst performance in comparison to the dollar in 2021 (CNN, October 2021)
Paulo Guedes has an active offshore in a tax haven (Poder 360, October 2021)
Paulo Guedes' offshore fortune increased by R$14 million with the dollar rate rise (O Povo, October 2021)
Guedes says that a high dollar rate is good for encouraging investments in Brazil (UOL, November 2021)
Dollar rate on 03/Jan/2022: BRL 5.68
Strengthening of the dollar causes more inflation and reduces Brazil's potential GDP (Folha, July de 2022)

3. BRAZIL HAD A TOOL TO PREVENT FOOD PRICES FROM RISING: BUFFER STOCKS. INSTEAD OF USING THEM DURING THE PANDEMIC, BOLSONARO EMPTIED THEM

Considered one of the "great granaries of the world," Brazil is one of the planet's largest food producers and exporters. For years, it had kept buffer stocks, which control prices and avoid sudden food price rises or the shortage of essential items. During the Bolsonaro government, buffer stocks were completely depleted – under the excuse that they are expensive to maintain – which has left the country susceptible to market fluctuations and price increases.
Brazil empties buffer stocks and loses a tool to contain prices (UOL, September 2020)
Government empties the country's wheat stocks despite hunger and supplier war (Jornal Extra, July 2022)

4. THE TRUTH ABOUT THE EMERGENCY FINANCIAL AID, AUXÍLIO BRASIL, AND OTHER WELFARE PROGRAMS: BOLSONARO HAS ALWAYS CRITICIZED BOLSA FAMÍLIA, AND WAS AGAINST THE BRL 600 FINANCIAL AID PROPOSED BY THE OPPOSITION

Bolsonaro, who has consistently criticized Bolsa Família, wanted to offer emergency aid of BRL 200 and went on to boycott the BRL 600 proposed by the opposition throughout the pandemic. On the eve of the elections, he forgot his pro-austerity discourse, which he had adopted throughout his government. He increased the amount like the opposition suggested in 2020 (and then said that the opposition was against the increase).
 
WHAT BOLSONARO HAS ALREADY SAID ABOUT BOLSA FAMÍLIA
"The Bolsa-farelo (família) [Scrapefare (welfare) program] will keep these people in Power." (Jair Bolsonaro, 2010)
"We must discuss the issue of Bolsa Família here. We must end it with Bolsa Família because, increasingly, the poor and the uneducated, who receive Bolsa Família, are manipulated into voting for PT." (Jair Bolsonaro, 2011)
“Bolsa Família is a lie. In the Northeast, you can't get a person to work in your house. Because if they go to work, they'll lose the Bolsa Família” (Jair Bolsonaro, 2012)
"The guy has 3, 4, 5, 10 children, and it's the Government's problem. He's already going to live on Bolsa Família; he's not going to do anything. He doesn't produce goods or services; he doesn't contribute to the GDP; he doesn't produce anything." (Jair Bolsonaro, 2015)
“To be a presidential candidate, you must say that you will expand Bolsa Família, so vote for another candidate. I'm not going to resort to demagogy, trying to please people to seek votes." (Jair Bolsonaro, 2017)
"Scrape fare” and "manipulated voting:" Bolsonaro’s contradictions about Bolsa Família (Congresso em Foco, August 2021)
Before defending its increase, Bolsonaro attacked Bolsa Família and even supported putting an end to the program. (O Povo, September 2021)
Bolsonaro: Bolsa Família beneficiaries 'don't know how to do nearly anything.' (UOL, October 2021)
22 years ago, Bolsonaro was the only representative against the Fund to Fight Poverty (Correio Braziliense, July 2022)
THE TRUTH ABOUT THE EMERGENCY FINANCIAL AID AND AUXÍLIO BRASIL: THE OPPOSITION ALWAYS PROPOSED THE AMOUNT OF BRL 600. BOLSONARO WAS AGAINST IT
Guedes announces monthly aid of BRL 200 to informal workers (R7, March 2020)
The House of Representatives approves an emergency aid of BRL 600 for low-income people during the epidemic (Agência Câmara de Notícias, March 2020)
Bolsonaro says he will veto the extension of emergency aid if Congress sets the amount at BRL 600 (G1, June 2020)
The opposition defends permanent emergency aid and taxation of large fortunes. Proposals from parties and civil society contrast with the government's idea (Brasil de Fato, August 2020)
Bolsonaro complains about the BRL 600 emergency aid during Livestream (Correio Braziliense, August 2020)
The government extends emergency aid for 4 months at R$ 300, half the previous amount (UOL, September 2020)
The opposition criticizes cut in additional aid installments: 'It means hunger' (UOL, September 2020)
The opposition defends BRL 600 aid until the end of the year (UOL, October 2020)
The emergency aid ends (Valor Investe, January 2021)
The government will provide emergency aid again in 2021. The benefit ranges from BRL150 to BRL 375, well below last year's payment range, between BRL 300 and BRL 1,200 (O Globo, April 2021)
Bolsonaro says he cannot renew aid: "Accounts are at the limit of the limit" (Correio Braziliense, October 2021)
Emergency Aid comes to an end and leaves 22 million without the benefit (IstoÉ, October de 2021)
PT defends a BRL 600 aid and warns that resources cannot come from the non-payment of government IOU (PT na Câmara, November 2021)
Lei do Auxílio Brasil, Bolsa Família's replacement is signed into law with vetoes (Estado de Minas, December 2021)
PSOL proposes an Auxílio Brasil of BRL 600 (PSOL, no Twitter; Sâmia Bomfim, in Video; April 2022)
Bolsonaro government counts on Lira to stop Auxílio Brasil of BRL 600 proposed by the opposition (Exame, April 2022)
Flávio Bolsonaro: 'Those who receive Auxílio Brasil's BRL 400 do not go hungry' (Correio Braziliense, June 2022)
The House of Representatives approves Auxílio Brasil of BRL 600 only until the end of 2022. The opposition presented amendments to make the increase from BRL 400 to BRL 600 in the benefit permanent, but the request was rejected. (Metrópoles, July 2022)
The left proposed permanent Auxílio Brasil of BRL 600, but the government guided his base to vote against it in Congress. Contrary to what President Jair Bolsonaro said in an interview, the opposition parties proposed a permanent increase in the income transfer program (O Globo, August 2022)
The government sends an Estimate with Auxílio Brasil Aid BRL 405 in 2023, even though Bolsonaro promised BRL 600 (Infomoney, August 2022)

5. NEITHER PEOPLE’S LIVES NOR THE ECONOMY. BOLSONARO BOYCOTTED THE FIGHT AGAINST THE VIRUS CLAIMING HE WAS "DEFENDING THE ECONOMY." AS A RESULT, TODAY, BRAZIL HAS THE HIGHEST DEATH TOLL IN THE PANDEMIC AMONG G20 COUNTRIES AND IS FACING ITS BIGGEST ECONOMIC CRISIS IN DECADES 

Under Bolsonaro, Brazil grew little in 2019. The president went so far as to put a clown to answer reporters' questions when confronted. Then he invented a story about a "Private GDP" to explain the fiasco. And then the Covid-19 pandemic came. Bolsonaro starred in one of the world's worst performances during the pandemic, the worst among the G20 countries. He said he was taking care of people's lives and the economy. In the end, he didn't save either of them.
Brazil's GDP grows 1.1% in 2019, the smallest increase in 3 years (G1, March 2020)
The government separates 'public GDP' and 'private GDP' to try to show that the economy is doing well (spoiler: it is not) (Folha, March 2020)
Bolsonaro uses a comedian to avoid answering about low GDP. President asked a comedian to answer journalists' questions about the country’s economic activity (Gaúcha ZH, March 2020)
“It's more of a fantasy,” says Bolsonaro about the market crisis caused by the coronavirus epidemic (BBC Brasil, March 2020)
The GDP in 2020 drops 4.1%, according to an IBGE survey (Agência Brasil, March 2021)
The GDP shows that Brazil remains stuck in low economic growth (Exame, December 2021)
2022: Brazil will record a slow growth rate in comparison with its peers (Poder360, December 2021)
A GDP of 1.7% in 2022 implies a low growth rate until the end of the year, says economist (CNN, June 2022)
Brazil has a setback of up to three decades in the economy, education, and environment (O Globo, June 2022)
Brazil lost the growth trend it had achieved (BBC, July 2022)

6. HUNGER IS BACK

Hunger has returned under the Bolsonaro administration. Brazil, which left the hunger map in 2014, now has over 33 million citizens living in food insecurity. Children are the most affected, and families have to get into debt and sell what they have to buy food.
Hunger increases twofold in Brazil in 7 years and affects children the most (Folha de S. Paulo, May 2022)
The number of hungry Brazilians soars and reaches 33.1 million, according to a survey (Uol Notícias, June 2022)
According to a study, 33.1 million Brazilians have nothing to eat (Metrópoles, June 2022)
Flávio Bolsonaro: "Those who receive Auxílio Brasil's BRL 400 do not go hungry'' (Estado de Minas, June 2022)
Brazilians sell the little they have to buy food (Jornal Nacional, July 2022)
Over 60 million Brazilians suffer from food insecurity, says FAO (G1, July 2022)
Without meat, families look for chicken bone and skin (UOL, July 2022)
Even with the BRL 600 financial aid, Brazilians need to sell personal items to eat (Uol, August 2022)
Datafolha: One in three Brazilians didn't have enough to eat at home  (Folha, August 2022)
Bolsonaro says that Lula's steak is just hot air, and there is no 'real' hunger in Brazil (Folha, August 2022)

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