'Inequality in Brazil is a political choice,' says economist.

Irish economist Marc Morgan Milá stated that the fiscal adjustment measures of Michel Temer's government tend to further increase inequality in Brazil; "The freezing of public spending for 20 years may have a negative impact on inequality because it is the poorest who depend most on these expenses. Also weighing on the equation are land legislation and fiscal policy, whether in the creation of fairer taxation or in the removal of tax breaks that benefit the wealthiest," says Milá, who is in Brazil participating in studies with economists from Ipea.

September 24, 2017, 09:31 PMUpdated June 26, 2018, 16:09 pm

Irish economist Marc Morgan Milá stated that the fiscal adjustment measures of Michel Temer's government tend to further increase inequality in Brazil; "Freezing public spending for 20 years may have a negative impact on inequality because it is the poorest who depend most on these expenses. Also weighing on the equation are land legislation and fiscal policy, whether in creating a fairer tax system or in removing tax breaks that benefit the wealthiest," says Milá, who is in Brazil participating in studies with economists from Ipea (Photo: Aquiles Lins).

247 - Irish economist Marc Morgan Milá stated that the fiscal adjustment measures of Michel Temer's government tend to further increase inequality in Brazil.

"Freezing public spending for 20 years could have a negative impact on inequality because it is the poorest who depend most on these expenses. Land legislation and fiscal policy also weigh on the equation, whether in creating a fairer tax system or in removing tax breaks that benefit the wealthiest," says Milá, in an interview with Folha de S. Paulo.

According to him, successive Brazilian governments chose not to confront the problem, avoiding policies that could limit the income of those at the top of the pyramid, such as a fairer tax system. "Brazil's recent history leads us to say that there has been a political choice in favor of inequality."

According to the economist, poverty and inequality are related. "In the last 15 years, poverty has been reduced, that's undeniable. At the same time, inequality has improved somewhat because many poor people have moved up. But the poor are still very poor, and the income gap between the two extremes is very high. Excluding the richest 20%, the income of the remaining 80% in Brazil is equivalent to that of the poorest 20% in France. Inequality is similar to that of France at the end of the 19th century. Hence, it's possible to see the journey ahead. Perhaps a hundred years won't be necessary; after all, Brasília was built in five," he stated.

Marc Morgan Milá is in Brazil, where he is participating in studies with economists from Ipea (Institute for Applied Economic Research). The group intends to launch, later this year, a series on Brazilian inequality beginning in 1926.

Read the full interview..