This package of evils will set the country ablaze.
If actually implemented, the economic package announced this week by coup leader Michel Temer and his Finance Minister, Henrique Meirelles, is likely to quickly convulse Brazil.
If actually implemented, the economic package announced this week by coup leader Michel Temer and his Finance Minister, Henrique Meirelles, is likely to quickly convulse Brazil. Taken together, the measures aim to address the current crisis with a brutal squeeze on workers and the middle class to increase the profits of capitalists, especially rentiers. The upper bourgeoisie, which orchestrated the coup and manipulated the "idiots," will reap the benefits; the vast majority of the population will bear the burden. However, the package of evils is so perverse that even sectors of the elites fear an explosion of revolts in the coming months. The old class struggle, which some pragmatists thought had ended, may hinder the ambitions of the coup plotters.
Among other harmful measures, the package includes the creation of a ceiling for investments in education, health, social security, and welfare. This measure violates the Federal Constitution itself, which established rules for the allocation of public resources to these essential services for the well-being of the population. The objective of this regression is to eliminate the current mandatory spending allocations. If the cruelty of Judas Temer were already in effect in the country, spending in 2015 on these vital areas for society would have been R$ 600,7 billion, about half of the R$ 1,16 trillion accounted for in that period. The obvious results would be longer hospital queues, fewer students in classrooms, and other social tragedies.
In the interview where he announced the package, Judas Michel Temer argued that "public sector spending is on an unsustainable trajectory." Hence the urgency of the evil! The lackey of the rentiers said nothing about the exorbitant spending on public debt interest, which enriches the 1% of the wealthy who live off financial speculation. The "fiscal austerity," so fashionable in devastated Europe, would only affect salaried workers and the middle classes of society. On that occasion, Minister Henrique Meirelles, darling of the "market god," also announced that he was studying mechanisms to reduce the tax burden on large businessmen and speculators.
Raising the retirement age
In addition to setting a ceiling on spending in health and education, the "interim president" reaffirmed his intention to carry out a "profound" reform of Social Security. In several interviews, his outspoken minister anticipated that the objective would be to impose a minimum retirement age of 65 – even for those who are already close to retirement. Because the initiative is explosive, with devastating effects on the very support of the coup government and on this year's elections, the more "political" sector of the Planalto Palace is avoiding addressing the issue. According to a sly note in Folha de S.Paulo, "the government has already reassured its shock troops in Congress: it will only present the Social Security reform after the municipal elections."
Also in the works is a proposal to eliminate rights established in the Consolidation of Labor Laws (CLT) – such as vacations, 13th-month salary, bonuses, and other historical achievements. The idea is to resurrect a defeated proposal from the unfortunate reign of FHC (Fernando Henrique Cardoso), which stipulated the prevalence of negotiated agreements over legislation. In last week's interview, Michel Temer touched lightly on the subject – also a inflammatory one. However, he did not hesitate to announce the end of the minimum wage valorization policy, which was created under pressure from the labor movement in an agreement signed with former President Lula. The so-called "de-indexing of the minimum wage" had already been anticipated by Henrique Meirelles at a gathering with "investors" in New York, as revealed by Época magazine.
Handing over the pre-salt reserves and other attacks on sovereignty.
In addition to these blatantly unpopular measures, Judas Temer also announced several actions against the national state. "The interim president highlighted that he will support a bill approved by the Senate that alters the rules for pre-salt oil exploration, removing Petrobras' exclusivity in these activities and ending the state-owned company's obligation to participate with at least 30% of the investments in all exploration consortia in the layer. The bill, authored by the PSDB senator José Serra, passed the Senate and will be evaluated by the Federal Chamber," excitedly described the pro-privatization Estadão newspaper. The colonized media also celebrated the decision to use the resources of the Sovereign Fund, to accelerate the privatization process of state-owned companies, and to decapitalize the BNDES (Brazilian Development Bank).
The presentation of the package of evils pleased the so-called "market god," which demanded harsh and immediate measures from its servants in the assault on the Planalto Palace. It was also celebrated by the rent-seeking media, which is already trying to embellish the sinister figure of Judas Michel Temer. The enthusiasm of the coup plotters, however, is restrained. They fear that the package of evils will generate strong wear and tear for the "new" government and encourage the expansion of street protests. To the democratic question would be added the defense of threatened rights. There are even fears that a massive wave of protests will reverse the votes in the Senate in the judgment of the "merits" of Dilma's impeachment, scheduled for September. Everything indicates that the country will experience moments of strong social tension. The effects of this fire are unpredictable!
* This is an opinion article, the responsibility of the author, and does not reflect the opinion of Brasil 247.