2015年3月4日 星期三

Is the samba slowing for Brazil's middle class?

Economic growths have lifted millions of Brazilians out of extreme poverty and have led many families into the middle class over the past decade. However, sustainable social gains in Brazil seem doubtful as for almost 3 years Brazil has grown very little or nothing at all. It is potentially headed for recession. Brazilian families who usually bought on credit will be no longer doing so. People are afraid to spend. Decline in consumption leads to less jobs created or available in the market, which creates a vicious cycle. I doubt if the middle class families can maintain their living standard or if some of them will be kicked out from the middle class, pitifully. Also, Bolsa Familia, the direct government payments to the poorest of the poor, may not help these people anymore as the government is planning big spending cuts. The disastrous economic performance hit the middle class and the extreme poor.


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