Brazil failed to control inflation in 2021? it’s not like that

Inflation

Rising food and energy prices put pressure on inflation last year.| Photo: Arquivo/Gazeta do Povo

Inflation data in the first world in 2021 came out – the second year in a row of a full-fledged pandemic – and this was the following: the United States, the number 1 economic power on the planet, had inflation of 7% in the year. It’s the worst since 1982 – meaning the last time a disaster like this happened was 40 years ago. The other rich countries, measured in the OECD as a whole, were no better. They were just below 6%, the worst result in 25 years. Inflation of this size, for a serious country, is a tragedy.

It is also the inevitable consequence of what the governments of the United States and the rich in general did during the year: they shoved money into businesses and directly into the pockets of citizens, believing that it was worth doing anything to keep their various lockdowns up, and deal with the calamities caused by them. As money doesn’t grow on trees, exactly what happens here happened there when the government opens the safe in an attempt to face some problem: crazy inflation.

The economic debate at the moment in Brazil, however, in yet another of its regular delusions, decreed that the international reality does not exist – ugly inflation, nowadays, only exists in the Bolsonaro government. Brazil had to face the economic disgrace caused by Covid like any other country in the world; did more or less the same things as other governments, basically opening the public coffer in various relief missions. It ended up with 10% inflation – and the outrage of economists, journalists and left-wing bankers. “How awful”, everyone is saying. “This Guedes ended up with Brazil”.

What did they want in a year like 2021? Brazil is not on Mars. It is obvious that there was inflation – not least because the government’s most excited critics spent the year demanding more and more public money to “save lives”. It turns out that the Brazilian inflation of 10% last year is a success, compared to the inflation of the most successful countries. The Lula-Dilma reign, without any Covid, ended up with inflation above 14% in 2016. What is the problem, then, with the 2021 number?

There’s no problem; there was, rather, a solution in a context of world calamity. Inflation of 7% in the United States or 6% in Europe is equivalent to more than 20% in Brazil, or God knows how much – it’s already on the verge of out of control, so much so that it hasn’t happened there for 40 years. The fact, supported by numbers, is that Brazil had better results with inflation last year than most countries in the world.

The public is in no danger of hearing this. On the contrary: all the news is a “failure” to fight inflation, plus the misfortunes that come with it: unemployment, recession, poverty. There is no rest of the world in these lamentations; there is no inflation anywhere, no stagnant economies, no lack of work, no loss of income, or anything. The only government on the face of the Earth is the government of “Bolsonaro”.

It is the result of a system. Journalists from the economic area, with their denunciation stories already written in advance, will interview economists already knowing, also in advance, that they will say exactly what they want to hear. Combine the hunger of some with the desire to eat of others and what you have is the “inflation scandal” of 10% – plus recession, unemployment and poverty caused not by the “lockdowns” that paralyze the production of Brazil two years ago, but “for Bolsonaro”. Economic information, nowadays, that’s it.

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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