It was a marketing disaster, a political disaster and an economic disaster to publicize what was expected. With the decision to bring forward the IR change proposal and create even more noise around the measures, the president, this time symbolically, aimed his toenail and ended up falling off the stool again. Doesn’t look like he’s in great shape.
It’s amazing that a marketer was consulted to help plan for the disaster. Based on a resentful and childish bet against the evidence of imbalances pointed out by economists and the market, the electoral calculation of the PT core embraced by Lula proved to be a huge mistake.
A minimum of rationality and coldness, without contamination from the jungle of vanities and ideological radicalism of the PT playground, would indicate that the most reasonable path would be to present the adjustment package in detail, which has virtues, and seek some more mature type of dialogue with the agents economic.
“Yes, that was insufficient, that was good, we can improve a little more with Congress”…
Anyway, what would be expected from such a complex topic. Once the course has been agreed and the margins of divergence have been defined, the boat continues. And next year we will talk about IR.
The brazen and improvised politicization of the process was based on the idea that the adjustment would immediately represent a major drain on the government’s image among low-income sectors. It will be? It is a dubious assessment to say the least. The spike in the dollar and interest rates, which will require increases in the Selic by the BC, will certainly prove to be more damaging at this time.
Or else let’s believe in yet another angry and crude demonstration by the Minister of the Civil House, announcing a new phase at the BC, because the future president of the institution lives in Brazil and doesn’t come from Miami. Please.
Lula would have done better if he supported his Finance Minister, and invested in a low-boiling economic environment, without unnecessary turbulence with the market and the logic of economic management.
This columnist is far from being a defender of fiscalism and the whims of Faria Lima. Such a perspective, however, does not give a free pass to the stupidity and recklessness demonstrated in this advertisement. Let’s hope it can be fixed, because the consequences that are announced will not just be bad for Lula.
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