Yara Aquino Reporter Agência Brasil
Brasília – President Dilma Rousseff described more spending by consumers as a positive indicator of greater social inclusion. The president was responding to criticism of measures by the government to stimulate consumption in a continuing effort to keep Brazil away from the negative impact of the international crisis.
Critics claim the measures have resulted in high levels of family indebtedness.
Dilma said that compared to international standards, indebtedness in Brazil was not high. “I do not agree with those who say you should not stimulate consumption. On the contrary, such stimulus is intrinsic to our model of development, a model characterized by social inclusion and justice. It would be strange, in Brazil, to implement a growth model that excluded 16 million people from consumption.” [the reference is to a study by the government that found some 16 million Brazilians continue to live in extreme poverty; a top priority of the administration is to lift these people out of misery]
Dilma went on to say that the government was not just making spending easy, but promoting investment. She defended public investments as a way to leverage growth. “We know that private spending is cyclical and is influenced by fear; government spending is not subject to the same influences,” she declared.
Dilma added that she was trying to untie what she called the triple knot of exchange rate, interest rates and taxes in order to alter investment conditions in Brazil and make further public spending viable. She said Brazil has “interior strength” to deal with the international crisis. “We are firmly planted on our own two feet. We have consistent economic policy. We are not about to make adjustments [such as an austerity program] that leaves 54% of young people without jobs.”
Link - Dilma critica teses contrárias ao estímulo do consumo e nega endividamento elevado das famílias
