Monday, June 24, 2013

Brazilian Protests: An Analysis of the Economic Fallout

In an article in Forbes, Kenneth Rapoza writes about possible economic and political fallout from the Brazilian protests.

As Rapoza notes, Brazil's sluggish economic growth had already been a source of concern before the protests began. If the government spends more money on improving public services (one of the complaints made by many protesters), that may provide political relief, but could have a negative impact on the economy.

Rapoza writes that since the middle class is now a majority of the population, "there are more of them to complain." 

This echoes analyses from other observers: the very success of Brazil's previously robust economic growth, along with a massive number of people moving from poverty to the middle class, are contributing to the discontent that we see in the streets. 

No comments:

Post a Comment