Imagine calling your bank account’s easy number to find out your current account balance and discovering that you have a debt of R$9 trillion?
The next question would be “but how much do I have to pay?”, to which the robotic voice would respond “you can pay 80% of the debt, but if you do nothing, in 2030 your debt will take over 100% of your income”.
I believe that right after the call, you would think about a plan to control your expenses, analyze your fixed and variable expenses, think about renegotiating some commitments and build a plan to reduce this debt.
However, the attitudes after the call were completely irresponsible with your current economic condition, as you increased expenses, were not concerned with the structure of your costs and did not present a plan that showed responsibility with your finances.
What are the consequences?
Your creditors will lose confidence in you. Not because they don’t like you, but because your behavior does not demonstrate responsibility, and the possibility of you not honoring some commitments begins to be considered.
Well, the character in question is called Brazil, and some investors have seen it that way over the last 60 days. The consequences are even more harmful:
To avoid comments that “a solution was not presented to help the current situation”, the study by the Independent Fiscal Institution of the Senate (IFI) deserves to be highlighted, which showed that .
Otherwise, it is expected that the general government’s gross debt will reach 86.3% at the end of Lula’s term, exceeding 90% in 2027.
After all that, could it get any worse? Yes you can!
What if I gave a raise to all my employees via the monthly payments they receive?
The minimum wage increased by 7%.
What is the impact?
The addition of each R$1.00 to the minimum wage has . Therefore, the government has a new cost of R$38.9 billion.
The question now is, but what about the revenues to offset this expense?
In the absence of this and other responses, we will have – according to the fixed income futures market -, and Brazilian businesspeople without confidence to activate the Brazilian economy through new projects and contracts.
