‘Tough economy’ is not convincing, and Lula goes into campaign mode with a focus on purchasing power

Inflation, unemployment and a partial drop in prices did not help the PT member’s popularity; new Unwinds and end of blouse tax are the government’s new bets

Ricardo Stuckert / PR

“It’s the economy, stupid!” The phrase by political consultant James Carville was used during Bill Clinton’s victorious campaign for the White House in 1992. At the time, the Democrat widely used the economic recession during the government of his predecessor, George Bush, as one of the main themes of his advertisements. More than three decades later, the phrase remains relevant in Western politics, but has gained new contours in times of narrative war on social media.

In Brazil in 2026, President Lula (PT), invested heavily in economic data to convince the electorate: Record unemployment and controlled inflation were combined with successful negotiations with the United States to eliminate most of the “tariffs” imposed by the Donald Trump administration on Brazilian products. Income Tax exemption for those earning up to R$5,000, Pé de Meia, an income distribution program for young people who attend school, and Gás do Povo were the three “brands” chosen by the government to promote the Brazilian economy.

The strategy, however, . Since the consolidation of Flávio Bolsonaro (PL) as the main opposition candidate, Lula has seen his lead in the polls fall and his own rejection increase. In private conversations, PT members admit that the main problem is communication: despite frequent praise for Sidônio Palmeira’s work, the left recognizes that, in the field of the internet, the right “does nothing”.

With the dominance of the networks, the opposition won the economic narrative war: public debt, losses of state-owned companies and, mainly, tax increases were the data used not only by allies of the Bolsonaro family, but also by centrist politicians, many of them from parties that make up the Lula government.

Still adjusting the form, the PT decided to change course in content: the assessment is that Numbers alone will not help convince the electorate. Therefore, the strategy is to focus on “tangible savings” and purchasing power. The new unfolds, which offers discounts of up to 90% on debt payments, and the end of the “blouse tax”, created by the Lula government itself, there are two new focuses in the government. The idea is that these measures will have an immediate impact on the voter’s pocket.

Another key agenda for the PT is the advancement of the discussion of Extremely popular, the idea’s main objective is to win over the younger and disillusioned electorate, who reject Lula. The resistance of the productive sector, however, helps the opposition’s narrative that the Lula government’s supposed fiscal irresponsibility will “break” Brazil. Despite this, the assessment is that, with just a few months left before the election, the agenda helps to boost the current president’s candidacy.

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