MercoPress. South Atlantic News Agency
Brazil announces measures to stimulate economy and domestic consumption
Brazil's Finance Minister Guido Mantega announced Thursday a package of measures aimed at stimulating the economy and domestic consumption, amid an international crisis mainly affecting developed nations as a consequence of the Euro situation. Read full article
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Disclaimer & comment rulesBrazil is cutting tax on various items.To stimulate demand?why don't they leave the tax on and spend it on welfare.who are they responding to,their citizens or some other needy body?is it the need of capitalism?Will the tax reduction suck in imports or lead to the outflow of capital in the near future?
Dec 02nd, 2011 - 12:46 pm - Link - Report abuse 0'Brazil is cutting tax on various items.
Dec 02nd, 2011 - 06:45 pm - Link - Report abuse 0- To stimulate demand?
- Why don't they leave the tax on and spend it on welfare?
- Who are they responding to,their citizens or some other needy body?
- Is it the need of capitalism?
- Will the tax reduction suck in imports or lead to the outflow of capital in the near future?'
Such a lot of questions, Yul. Unfortunately, I do not know the answers.
With any luck, Forgetit will contribute. He is usually good on financial topics.
Obviously they wish to.stimulate internal demand to grow the economy.I imagine as Dilma and CFK meet in Caracas they will equally discourage non mercosur imports but do all they can to sustain and improve the performances of PYMES within the economies which are vital in creating employment.
Dec 03rd, 2011 - 12:48 am - Link - Report abuse 0Big change in policy needed for this to take place, O'G.
Dec 03rd, 2011 - 09:16 am - Link - Report abuse 0Up to now BNDES has put the vast bulk of the country's development money into the BIG industries to make them even bigger.
The trouble is, this takes them into the multinational/globalised arena and monies from profit drift away from the parent country - frequently causing the government to 'nationalise' the company insofar as it is able.
Not a good recipe for maximising state income.
Huge investment in *Brasilian* PYMES (=SMEs) is sorely needed at this time.
Have to agree with Geoff here O'G, but not for the same reason.I would have thought,if they left tax where was,and increased welfare spend,they would have more control on non-mercosur imports.I'm afraid they are going to increase those imports.This is in line with what the USA and Europe want to address their crisis.
Dec 03rd, 2011 - 10:06 am - Link - Report abuse 0If that is the case it will be of less benefit to mercosur than the USA and the multi-nationals.
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