Quote Originally Posted by Mizuho View Post
Not even close. Don't get me wrong, that has given them a few points worth of growth, but it by no means explains their record growth under Lula. That was primarily driven by commodity sales. While brazil has oil, it's offshore and difficult to exploit. But Brazil does have an abundance of just about every other commodity sold on worlds markets, from tin to timber, minerals to beef. China's rise, and absurd consumption of just about every commodity on the market, has driven up prices and Brazil has been a huge benefactor from this. That's where the the money comes from for all these social welfare programs. But even a commodities boom wouldn't help Brazil much if it had a completely inept bureaucracy and inflation was in double digit territory. But it wasn't the Left that put brazil on that firm footing, it was PT. PT cleaned up the bureaucracy and make it something resembling a professional class. PT brought inflation down to manageable levels. Then PT got kicked out of power, and that around when the commodity markets took off. To be clear, there are huge economic benefits to the welfare programs that PSDB implemented, but they do not explain most of Brazil's growth during that time period and those programs would be impossible in a brazil facing high inflation and low commodity prices. And low and behold, after 4 years of Dilma...Brazil is facing 7.0% inflation which is nervously high, and commodity markets have plummeted as China has slowed down. Brazil has no recent growth, and as inflation goes up and China slows further, that no growth becomes negative growth. Thats's what happened the last time PSDB was in power and it took years of PT rule to get inflation back under control. Now you are looking at 4 years of rule by a legitimate Marxist, who comes from a party that has a TERRIBLE track record of being able to spur productivity growth or check inflation. PSDB's platform has never been "sustainable" because the only way they know how to grow the economy is by getting lucky with high commodity prices. PSDB is good at redistributing from the rich to the poor, which Brazil certainly has needed and still needs. But that isn't possible long term without growth and without controlling inflation, and PSDB can't and has never been able to do that. Realistically, the country needs both parties: PT to drive growth and PSDB to make sure that growth reaches everyone. Facing low growth and high inflation, as brazil does now, indicates that PT would be the better leading party. And yet Dilma won after a very dirty campaign, and will likely drive the country into recession for several years before voters get a chance to vote her out of office in 4 years time. Tragic.
Paragraph breaks. PLEASE. My eyes were going cross trying to read that. lol

Well taking the lead in office tends to moderate everyone so lets hope that she can see that need. Looks, by what you said, like Brazil is too heavily reliant on China and perhaps needs to expand their trade more. Also getting folks out of poverty there will help a lot with growth in that they turn into more consumers locally for the goods. But you're right in that there has to be some balance.