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Unemployment and social policy cuts have increased extreme poverty in Brazil, …

by Ace Damon
Unemployment and social policy cuts have increased extreme poverty in Brazil, ...

Brazil

23:38 08.11.2019URL short

The IBGE released a study this week revealing that extreme poverty rates in Brazil are the highest since 2012. Sputnik Brazil talked with economist Fábio Sobral about the main causes for these numbers.

According to a survey by IBGE (Brazilian Institute of Geography and Statistics), the number of Brazilians living below the extreme poverty line reached 13.5 million, that is, people who have less than $ 1.90 a day, which equates to approximately $ 145 per month. This is the largest contingent of people in this condition in the historical series of the study, which began in 2012.

Commenting on the main reasons that led Brazil to this index, Fabio Sobral, professor of economics at the Federal University of Ceará (UFC), in an interview with Sputnik Brazil, cited large-scale unemployment and social policy cuts.

"Certain benefits of continuing benefits (BPC) are critical to avoiding this extreme poverty. But especially the fall in economic activity leads to job losses and this has a cascading effect, where direct employment ends up causing indirect jobs. Commercial sectors dismiss with the fall of consumption, industrial sectors no longer have the orders of these commercial sectors, transport sectors are also affected, and there occurs this effect of association, "he argued.

According to the expert, the increase in extreme poverty indicators in Brazil affect the ability to resume growth due to the loss of consumption power of the population, which, according to him, generates a cycle.

"Most of the consumption comes from people earning up to two minimum wages, and the reduction of these people means a significant reduction in consumption. The wealthier people tend to invest their earnings in the financial market, in addition to exceeding their personal consumption. .

Fábio Sobral mentions that along with an increase in people below the poverty line, Brazil has an unemployed number of more than 12 million people, about 24% of the individual and informal workforce, as well as a record increase. of people without signed wallet.

"There are already more informal workers than formalized, the informal worker tends to work longer hours and earn less. In fact there is a time for the replacement of formalized workers by informal workers, because it yields greater profitability for capital," says the expert. .

"So the choice for immediate profitability means the disappearance of large portions of consumers, which ends up reversing the deepening economic crisis," added the economist.

. (tagsToTranslate) Extreme poverty in Brazil (t) social policies

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