The role of state and liberalism becomes the target of debate – 01/17/2021

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Public spending by countries exploded with Kovid in 2020. Governments around the world have run for the rescue of businesses and jobs. Inequalities have intensified, and the debate over the role of the state in the economy, as it happens from time to time, has been revived.

In Brazil, where the Chicago School – an American university that was the birthplace of neoliberalism – has been in vogue ever since Paulo Geddes came into the Ministry of Economy, the liberal model has lost strength. In most parts of the world, fiscal austerity was set aside so that the population could be driven out, and economists question whether it would be resumed.

To try to understand where the world and Brazil will go in the coming years Estado In addition to the two original “Chicago Boys”, spoke to Brazilian economists and bankers and, therefore, the Guides veteran at the University of Chicago. The two trained in the United States disagree on the best economic course to take Chile, but agree that increasing states’ size and performance in the economy is not a short-term change.

Both funded their studies in Chicago between 1955 and 1964 by the US government. While one says that “unfortunately” there should be greater regulation of activity from now on, one celebrates the signs of change towards the state “to promote productive development”.

In Brazil, the discussion is beyond the question of the stability of a large state in the economy in the coming years. The debate also included questions about Guides’ lack of ability to implement the Gujars he promised. In the first two years at the helm of the Bolsonaro government’s economy, he only managed to approve pension reform – which was possible only by the efforts of a large portion of congressmen.

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Who are The “Chicago Boys” were Chilean economists whose studies in the United States were funded by the US government during the Cold War. The contract with Chile’s PUC, trained 30 Chilean professionals – part of them related to the economic team of the Pinoshe dictatorship.

Information is from the newspaper s. State of Paulo.

About the author: Sarah Gracie

"Proud social media buff. Unapologetic web scholar. Internet guru. Lifelong music junkie. Travel specialist."

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