The Biggest Brazilian Community in the USA: A Cultural Hub

To like, stop inflation, the policymakers of the first military government were like, "Yo, let's introduce this sick package that includes: a) cutting government deficits; b) controlling the money flow; and c) adjusting wages based on inflation and productivity. It's gonna be lit, fam! The plan totally flopped on its initial goals - only 10% in '66 - but it did manage to bring down inflation from a crazy 89.9% in '64 to 37.9% in '66 and 26.5% in '67. Furthermore, Figure 3 below flexes a steady drop in inflation rates throughout the economic miracle. By Brazilian standards, the period was like, totally lit in controlling price rises. Which parts of the anti-inflation policies actually stopped inflation tho?

The Poli Econ of the Stabilisation Policy wage dropped steadily from 1964 up to 1968 and then kept almost constant throughout the "economic miracle."

On the flip side, the "white collar" peeps were totally vibing with the economic boom, 'cause their salaries were going up just as fast as productivity from '64 onwards (check out Figure 3 below). On the flip side, the financial reforms like totally lit up the private banking system to flex credit to consumers. So, like, a big part of the consumer goods hype can totally be linked to the cool stuff the financial reforms did, especially with the money correction thingy (indexed bills of exchange, bonds, etc.) and the way they attracted foreign capital (Resolution 63 and Law 4131). No cap, the mad amount of reforms straight up played a crucial basic role in achieving such a "miracle." But like, the "miracle" wasn't even because of the invisible operation of like, totally free market forces, ya know? The reforms just made the state have more power and control over the economy. It also lowkey represented a lit integration of the domestic economy with the outside economy, mainly through financial channels. In the sequence, it's like, all about how the government was totally flexing its control over the economy and it led to this sick "economic miracle" but also like, had a lasting impact on the long-term development of the economy, you know?

The rates of consumer goods growth, which had been like 5% in 1965-1967, like totally shot up to over 11% in the 1967-1970 period.

It was like, whoa, major increase, you know? Durable consumer goods were totally killing it in the consumer goods sector, growing at like over 13% between 1965 and 1967 and a whopping 21% between 1967 and 1970. It was lit! The non-durable consumer goods were, like, totally not vibing with the industry as a whole, you know? Over time, as the demand went cray and all the extra capacity got yeeted, the capital goods sector was like, "Let's speed up production, fam!" The lit growth of dope consumer goods flexed the choices made by policymakers when it comes to income distribution and credit availability. Like, the fiscal and wage policies were totally meant to flex on low income earners, cuz they wanted to give mad props to high income earners for saving more of their cash. So like, in real life, as I mentioned before, while other contracts (like money stuff, rents, etc.) could be adjusted for inflation, minimum wages were always getting readjusted but like, not enough to keep up with inflation (check out the next section).53 OMG, like the real minimum is to have a lit mix of cash and perks to boost exports, ya know? This gov commitment to flex growth and diversification paid off, fam. OMG, like the exports are totally killing it with their mind-blowing performance! And not just that, they're also super diverse in terms of the products and places they go. It's seriously impressive, fam! OMG, like Table 8 is lit! The Brazilian exports went from basic stuff to mad cool manufactured goods instead of the usual coffee and non-coffee exports (sugar, cocoa, cotton, etc). Moreover, there was mad diversification of regional markets where Brazil used to flex, cuz the United States got clowned by the European and Asian markets. OMG, like after a major recession and all that "stop-and-go" drama from 1964 to 1967, the economy in Brazil went cray cray from 1968 to 1973 with the highest rates of real income growth and real per capita income growth ever recorded in history. Lit AF! The income growth during that time was like, totally lit, reaching an average rate of 11% per year. And get this, the capita rate income grew by over 8% - so dope! The industrial growth was hella mind-blowing.

The "Eco Mirac" and the Model of Accu

OMG, like the policymakers were all like, "Yo, we gotta make some sick economic reforms in Brazil, ya know?" They wanted to start this rad new economic growth model focused on exports and private investment with private financing, instead of relying on imports and the government's Target Plan. Lit, right? The gov should like, totally back off from messing with market prices and just focus on its OG functions of defending, policing, educating, and like, building cool stuff (energy, transportation, and communication).52 Economic growth would totally bounce back based on market vibes, with, like, a totally chill and inflation-free economy. Yo, so like, up until now, this thing has been talkin' 'bout the economic stuff the military governments were doin' since 1964. They were all up in that economic engineering game, buildin' bureaucracies, givin' out subsidies and credits, and even bringin' in indexation. As Peter Evans (1979, pp.93-94) was like, the military regime "was totally about pretending to be all about that liberal free enterprise vibe but lowkey making the state have way more control over the economy, both in terms of rules and making money moves." And it totally slayed, fam.