Brazilians’ average income broke a record, but inequality in the country continues to grow. This is what data from the National Household Sample Survey (PNAD), released by IBGE, shows. For Carla Beni, an economics professor at FGV, the interest rate structure in force in Brazil is one of the main factors that deepens this social abyss.
In an interview with Now CNN this Saturday (9), Beni explained that the average income figure of R$3,367 includes the sum of all sources of income: work, retirement, social benefits, rent, pensions and income from financial investments.
“There was an increase in income regardless of whether one was richer or poorer, but the difference between one and the other is very large,” he stated. According to the professor, these data indicate that Brazilian society can be divided into two groups: those who spend more than they earn and those who spend less than they earn.
She explains that this second group with surplus income usually invests this surplus in the financial market. Having had one for four years, this person obtains significant income, further amplified by the mechanism of compound interest.
“This accentuates inequality. If you need a loan, you pay much more than you should. And those who have a financial investment, receive even more than they should, because they have the benefit of the rate and compound interest”, adds the professor.
Other factors
Beni mentions that another determining factor for inequality is the level of education. According to data presented by the FGV professor, a worker with completed higher education receives, on average, R$6,947, while a worker with no education receives R$1,518.
Furthermore, the professor pointed out that food, like food, has a disproportionately greater impact on the budget of the poorest families. It was also cited as a growing problem: “People are literally buying less food because of gaming debt,” he warned.
Regarding social benefits, Beni highlighted that more than 60% of the jobs created last year were occupied by Bolsa Família beneficiaries, which demonstrates that receiving the benefit does not prevent the worker from being in the formal market.
In relation to the Continuous Payment Benefit (BPC), the professor pointed to a higher-than-expected growth, attributed both to the inclusion of new health conditions eligible for the benefit and to a significant volume of legal actions that guaranteed access to the BPC for a growing number of people.
When asked about the differences in income between the country’s regions, Beni clarified that the outstanding performance of the Central-West is essentially due to the Federal District.
“If you separate it, the Federal District comes first with an income of more than 4 thousand reais, then comes São Paulo and then Rio Grande do Sul”, he explained. According to her, this detachment is mainly due to public servants, new competitions and new hires carried out in the region.
