Lula busts the economy to stay in power
Lula, with his populist logic, destroys economic fundamentals to try to win the elections. Nothing for the country, everything to remain in power.
TL;DR
- Government spent approximately R$ 250 billion in 2026 for consumption expansion, aid, and debt renegotiation programs.
- Bolsa Família received an increase in an election year, allegedly violating the Fiscal Responsibility Law.
- The PEC ending the 6x1 scale was approved, with potential negative consequences like increased unemployment and prices.
- Tax debts of individual micro-entrepreneurs are being forgiven, costing R$ 12 billion and potentially incentivizing default.
- High interest rates in Brazil are attributed to fiscal imbalance and high default rates, which are reportedly encouraged by government actions like debt forgiveness.