While modern Americans often complain and demand more and more Big Government Socialist corporate and individual handouts, our neighbor to the south is creating a powerful capitalist economy. In other words, unlike Americans the Brazilians are working for a living.
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| Brazil. The future of Capitalism? |
In a capitalist world someone has to first earn the money before it can be spent. Americans love to spend, but they are not as interested in earning it through hard work. Ring up the national credit card and party all night is now the motto of the USA. Don't worry Americans say. Someone else will pick up the check.
So here is a sincere thank you to our friends in Brazil. Without you we Americans might have to go to work for a living.
Brazil's unemployment rate fell in April. The month's 6.4% jobless rate was the lowest for April since 2002, when the current statistical series began, the Brazilian Census Bureau, or IBGE, said Thursday. Labor minister Carlos Lupi was cited by local Estado newswire as saying Brazil may enjoy its lowest-ever unemployment rate this year.
Economists said that the currently tight labor market, with a shortage of skilled workers, should intensify inflationary pressures. "The Brazilian economy is working at full employment, and should continue that way in the medium term," said Tatiana Pinheiro, of Santander Economia. "We believe the effects of the monetary tightening could be more significant in 4Q11."
Jankiel Santos of Banco Espirito Santo said that "Given the clear dearth of workers, one can expect wage negotiations in the coming months may add to current inflationary pressures."
Growth, Growth and More Growth
Brazil's economy increased 7.5 percent in 2010, a record high since 1986, authorities announced Thursday.
Gross domestic product (GDP) of the Latin America's biggest economy reached 3.67 trillion reais ($2.21 trillion) in 2010, according to the figures released by the Brazilian Institute of Geography and Statistics (IBGE).
It is the highest GDP expansion registered in Brazil since 1986, the IBGE said, attributing the high growth rate to the increase of domestic demands in the country. Industry, which expanded 10.1 percent in 2010, was the most benefited sector from the economic recovery.
Brazil's economic growth surpassed countries such as South Korea, Japan, Germany and the United States and also exceeded the five-percent world average GDP growth.
Growing Middle Class Fuels Brazilian Economy
As the developed world struggles, Brazil grows faster, on the strength of its export economy, but also rising domestic demand. Its middle class continues to expand — and spend. An estimated 35 million people joined the middle class between 2003 to 2009, and 20 million more are expected to be included by 2014. Unemployment is at a relatively low 6.5 percent.
From the bustle of Sao Paulo, where a vista of modern steel and glass skyscrapers seems endless, to its vast farmlands, Brazilian optimism is on the rise and so is its growing consumer class.
They are consuming everything from cell phones and laptops to Coca-Cola and Nikes, and they were out en masse at the Morumbi shopping center in Sao Paulo on a recent Sunday. There are 210 million registered cell phones in Brazil, 10 million more than the estimated population of the entire country.
President Dilma Rousseff's chief of staff announced plans to hand over the country's five largest airports to the private sector in an effort to speed up much needed upgrades.
Brazil is also saddled by huge infrastructure needs — and costs. Some private economists forecast that the country will have to spend some $700 billion to a trillion dollars to get roads, airports, sewers and sports facilities ready for both the 2014 World Cup and the 2016 Olympics.
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