Lula today edited provisional measure that will inject billions into the economy via payroll loans for private initiative workers. A stimulus to consumption, therefore.
Even in the government’s own economic team, there is a certain degree of concern for encouraging demand at the time when inflation bites the pocket-and the popularity of the government.
It turns out that, in Lula’s view, the economic team understands nothing to earn elections. And Lula thinks only elections with tax expansion – spending, to use a more popular word.
The president does not agree with the view that the imbalance of public accounts, caused by always higher spending than revenues, has something to do with inflation. And therefore with interest.
Pressured for low popularity and focus on elections, only sees one way ahead: to find programs that facilitate families consumption.
It has not been easy for two reasons. The first is the fiscal trap created by Lula himself. The more he ranses inside her, the greater the distrust of economic agents.
The second reason is political in nature. The Fareja Congress that Lula embarked on a high risk bet: that of a minority government, without new ideas or great plans, to search, cost what it costs, the lost popularity.
The cost is already very high. Political cost. And for the economy.
