Members of the Workers' Party criticize Bolsonaro's irresponsible coronavirus policy.

180-degree turn, by Lindbergh Farias and Marcelo Sereno

The reaction of countries to the coronavirus pandemic is almost unanimous. First, with a policy of containing the spread of the disease. Each in its own way has limited social interaction and invested in hospitals, healthcare teams, free testing kits, free flu vaccinations, and scientific research. There is a race for a vaccine and more modern medications to combat this modern scourge. In the countries most affected by the pandemic, there is a lockdown of social life, with the closure of schools, theaters, cinemas, churches, temples, and even factories and offices; only essential services remain open and functioning. The solidarity and playful reaction of the populations of China and Italy to the virtual closure of cities and their social spaces has moved the world. Second, with policies to encourage economic activity, both monetary and fiscal. Central banks in the US, France, the UK, and Japan have reduced interest rates, created programs to buy public and corporate bonds, the FED decided to inject $1,5 trillion into the economy, and in the UK, more than £600 billion will be invested in infrastructure and the National Health Service (NHS) by 2025. The response is the same in Europe, Asia, and North America. It's a 180-degree turn in economic policy, according to economist Ester Dweck in an article for Jacobin magazine, "The fight against the coronavirus bears similarities to a war economy."

Meanwhile in Brazil, the Bolsonaro government is treating the coronavirus crisis with disdain, spreading fake news about the severity of the disease, encouraging street demonstrations in its defense, and opposing democratic institutions, putting people's health and lives at risk. There is a clear delay in the reaction of Brazilian federal authorities to the coronavirus. And even Trump, who scorned the threat of the virus, declared a national emergency, allowing, among other things, access to $50 billion to help states and municipalities. Bolsonaro and Guedes also want to maintain their nefarious austerity policy, in this case counting on the explicit support of the mainstream media, the high state bureaucracy, and sectors of big business and banks. The veto of the increase in the BPC (Continuous Benefit Payment) is the best example of this conservative unity. Without a substantive change in this policy, we will not only fail to combat the effects of the coronavirus, but we will also remain trapped in the economic stagnation that has plagued us for the last 3 years.

Several measures need to be adopted urgently, both to address the current health emergency and to protect people's lives and the economy. The first step is to strengthen the SUS (Brazilian Unified Health System), unfreezing the health resources held back by Constitutional Amendment 95 (PEC 95), the Spending Cap Amendment, and revoking Ordinance 2.979/19, in order to guarantee the transfer of SUS resources to municipalities. This will allow us to guarantee free coronavirus testing and increase the availability of ICU hospital beds to address the likely rapid increase in severe coronavirus cases, a problem experienced in Italy. In this sense, the exchange of experiences between countries should be one of the main guidelines of health policy, particularly monitoring the practices adopted in the immediate fight against the disease, such as research on vaccines and new medications.

Cooperation between the federal government and states and municipalities is essential for a rapid overcoming of the epidemic in the country. Starting with the adoption of a single protocol for protecting the population, in a continental country, quarantine, travel, and social distancing policies to prevent new infections must be unified.

But it is in economic policy that we need a 180-degree turn. Starting with the end of austerity policies. The first measure is the repeal by the National Congress of Constitutional Amendment 95 and the relaxation of the fiscal target. And to face a crisis of this magnitude, it is urgent to create an emergency fund to support states and municipalities and to adopt a combination of monetary and fiscal policy measures with the aim of overcoming the crisis and resuming growth.

In a stagnant economy with a high percentage of "informality" in the labor market, the first measures should focus on protecting jobs and income. The natural course of action is to ensure job stability in the public and private sectors for the duration of the pandemic, coupled with incorporating the 3,5 million families already on the Bolsa Família waiting list, eliminating the waiting list for INSS (National Social Security Institute) pensions, and implementing a policy to increase the minimum wage. An extra dose of creativity will be required to maintain a minimum income for the millions of precarious workers and those in the so-called "gig economy." We believe this could be a combination of cheap credit and a minimum income for the duration of the pandemic. To achieve this, the Central Bank needs to continue lowering the Selic rate and quickly define a policy for injecting resources into the economy, similar to the policy adopted by the US Federal Reserve.

Beyond emergency measures, public banks need to resume their role in providing financing to individuals and businesses. And a broad infrastructure program should be implemented with the support of BNDES, which needs to regain its leading role.

The economy needs to keep moving.