![One of the main names in Lula's first administration who dealt with the economic aspects, Marcos Lisboa, has said that the Brazilian economy is headed for a new era of severe crises. Photo: Reproduction/YouTube](https://braziltimes.news/wp-content/uploads/2023/01/marcos-lisboa-768x432-1.png)
Based on the economist’s assessment, the country will face a scenario of uncontrolled spending on public goods in the future
The economist stated that the agenda of stimulating investment with subsidies and guidelines adopted by Lula, before leaving the Presidency of the Republic, caused low growth and a fiscal crisis that today is more serious than 20 years ago.
Marcos Lisboa pondered that, even after two years of the pandemic, the economy reacted better than expected, but explained that the 42 measures approved in the Bolsonaro government, 12 of which were constitutional amendments, such as taxi driver assistance, truck driver assistance, protection for ethanol, distribution of benefits, “throwing society’s money into the sea to benefit some”. “The tragic aspect of Brazil is that when things start to improve, people go backwards”, said the economist.
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Lisboa points out that Brazil has been submerged in an “immense institutional misstep” in the last decade and referred to the Dilma government as “very technically and politically incompetent”.
“It was an incredibly clumsy, ineffective agenda, with little dialogue and technically superficial”, said the economist. “In the last election, it was impressive how Congress appropriated funds,” he maintains. “With the electoral fund, for example, you have to explain to the foreigner that Brazil gives US$ 1 billion for the parties to contest the election, apart from the party fund, apart from the free electoral time.”
The 2012 crisis was contained by the reforms carried out by interim president Michel Temer, who succeeded to the post with the impeachment of Dilma Rousseff. Marcos said that it was enough for the crisis to be contained for the groups “organized, with support from the left and the right, to realign themselves to return to capturing the State”.
With Lula’s election, the president of Insper believes that we are on the way to another severe economic crisis, according to the results of the Stock Exchange.
“This risk exists and it has worsened in recent weeks. If this expansion of the imbalance in public accounts continues, the debt could get out of control in the short term, and the risk is of an increase in inflation and interest rates in the medium term, with recessive impacts on the economy.”
The economist alleges that he has hope in the “pragmatism of a part of the leadership of the left if things start to go awry”. He warns that if the elected government maintains the position that the market is the villain, it will not have good results. “This fallacy that the market is a union, someone we negotiate… It doesn’t exist”, he concluded.
Source: Revista Oeste