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Federal Debt In Brazil

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Brazil’s economy and federal debt

The country I live is Brazil. It’s a third world country that is always needing and owing money over fiscal policies loans and developed countries. Brazil has a very poor and unprepared form of taking care about the country’s economy. It looks like we’re always owing each day more, the taxes are each time bigger and the inflation takes care of the country in a way that, we never know what will happen tomorrow, but the only thing we can predict is that the inflation for Brazilians will be bigger.

Some changes inside the government are totally necessary to stabilize an economy when things do not go as planned. Some government purchases of goods and services, when possible, need to be cut off. If this service is a public utility service, or it provides life quality to citizens, this service should keep existing in order to maintain the order inside the state. If it’s a relative spent, that will not make a huge difference if cut, sometimes needs to be reconsidered for a while.

There are some services that are more difficult to cut or move, since it provides some indispensable needs. One example of this service is the Social Security, that feeds people who contributed the whole life and are now being provided without any action by them. This is a transfer payment made by the government that couldn’t be …show more content…

In Brazil, because of the unstable economy, the taxes are each time higher and the government lost control, because if they lower the rate, the country will not be able to pay all the debts. If the rates are each time higher (what usually happens), the economy inside the country loses consumers for other countries, and the economy doesn’t develop because people do not spend money inside the country. That’s what happens and that’s why brazilians only buy when they travel

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