Inequalities are a characteristic feature of human history, and an egalitarian configuration for all from an economic point of view seems utopian. The greatest attempt at a modern experiment in this direction was that of the bankrupt Soviet Union, which eventually joined the capitalist system in the early 1990s.
After all, some individuals dare more than others, take risks, and end up being rewarded for creating opportunities and inventions that enrich them, while spreading social well-being through productivity.
Recent decades, however, have been marked by the “financialization” of capitalism, in which money simply produces more money. Not only do innovative businesses generate profits, but the accumulated wealth is perpetuated on an unprecedented scale.
According to the latest Global Inequality Report — the third volume of international work carried out by more than 200 researchers coordinated by French economist Thomas Piketty, author of “Capital of the 21st Century” — income and wealth inequalities continue to grow at an ever-increasing pace.
When it comes to wealth accumulation, 0.001% of the world’s population (56,000) hold three times as much wealth as the entire poorest half of adults (2.8 billion).
In terms of per capita income, it is no surprise that Brazil, with all its acknowledged problems, ranks as the fifth most unequal country in the world. The others are South Africa, with the scars of apartheid, Colombia, Mexico and Chile.
The 10% of Brazilians at the top of the income pyramid capture 59.1% of national income, while the poorest half receive only 9.3%.
In the case of wealth concentration, which includes financial assets and other assets, such as real estate and investments, the country ranks sixth. The richest 10% own 70% of the total, and the richest 1% own more than a third.
The government of Luiz Inácio Lula da Silva (PT) has taken measures towards greater tax progressivity, so that the richest pay more taxes. Recently, an income tax exemption was approved for those earning up to R$5,000 per month.
This is an important change since, of more than 4,800 projects analyzed by the National Congress between 1989 and 2020, only 5% were progressive, according to a study by the University of São Paulo.
The crucial problem at the moment, however, is the brutal concentration of revenues that the PT administration is irresponsibly promoting by leading the Central Bank to maintain interest rates of 15% per year to combat inflation generated mainly by uncontrolled public spending.
This year, 1,000 billion reais will be paid in interest to those who invested a little money, the same amount going to the 41 million INSS beneficiaries. This makes Brazil fertile ground for rentiers and the perpetuation of inequalities through “financialization”.
editorials@grupofolha.com.br
About The Author
