The Economic Gap

In the past, I've discussed how the Brazilian economic miracle is not exactly the all-encompassing phenomenon the media might have you believe, due to still-low salaries, high taxes, consumer debt, and exorbitant prices for technology and some consumer goods. Here are some other examples of day to day economic struggles that Brazilian consumers are facing. While some may not seem like immediate dangers, they can potentially cause problems in the long run and to hinder growth rates.

-While American consumers struggle with credit card debt, Brazilians are also dealing with credit card fees. Credit card annuities in Brazil are amongst the highest in the world, as are annual interest rates, which range from 188 to 433 percent.

-Despite a boom in construction and home purchases due to increased credit and higher employment rates, there are disturbingly similar trends already emerging in the Brazilian housing market, although there's been very little reporting on the subject. According to one story, there has been a "visible increase" in homeowners seeking advice on arrears, since some buyers are being deliberately misled about spending obligations, and already, financial firms are profiting. It even points out that Brazilian law allows banks to repossess a home after just three delayed payments.

-Even though salaries are on the rise and unemployment is at a record low, Brazilians are amongst the most unsatisfied with their jobs and income amongst 23 developed and developing countries, says a recent study. Also, Brazilians counted lack of sleep, health care costs, and job loss as some of the major causes of job-related stress.

-In the recently released Legatum Prosperity Index, which measures wealth and wellbeing worldwide, Brazil came in 45th out of 110 countries. While the results seem to be dependent on subjectivity, the rationale for Brazil's score does have merit: poor public security, education, and governance. Brazilians surveyed were unsatisfied with the educational system, which was seen as being in short supply and low quality, and showed little confidence in democratic institutions. In this study, these conditions were seen as obstacles for economic growth and prosperity, as well as overall quality of life.

Finally, here's an interesting report on how education affects the economy in Brazil (Portuguese only):

 

Comments

[Tricia]

Do you know where I can find statistics on education and literacy by country?
I'd love to talk with you sometime about how you are searching your Brazil/Rio news. I have some google alerts set but get SO much BS on a daily basis.
BJOS!!

[F.Sousa]

Excelente post, foi direto ao ponto.

Acredito que uma boa maneira de tentar diminuir o tamanho do problema é incentivar a população mais velha a retornar à escola e aos jovens a permanecerem.

E isso é algo que pode ser feito pela própria população, principalmente a mais jovem que pode e deve incentivar seus pais e colegas a retornar/manter os estudos.

É claro que não mudaria lá muita coisa levando em conta a qualidade do ensino público, mas é melhor do que esperar uma solução mágica do governo.

[Elias]

Great, Rachel!

it's interesting to think about educational system in Brazil because it's a subject too complex. It's quite common to hear that brazilian public schools don't work, and that's why our educational system is so "weak", but in my opinion that's just a part (and maybe a small part) of the problem.

I've met some students from private schools, for example -- and from middle class --, who don't know basic things. I'm talking about students who don't know that Romeo and Juliet was written by Shakespeare, or that Argentineans speak Spanish, or what America means. And I'm not kidding.

This kind of things makes me think that our "public schools" aren't all the problem: there are more things behind that. We have to study what's going on with our edecational system and make something to change it.

And well, I hope we get that.

Have a nice day, Rachel. Your blog is awesome!
Elias.

[Jolly]

Vocal Brazilians always think "education" is a cure all panacea. No thoughts about the excessive bureaucracy, lack of equality of opportunity, weak enforcement of contracts, etc.

here is a recent article that mentions shortcomings other than "education":

http://www.economist.com/node/17522484

read the comments section for more cluelessness..