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Lulas Social Policies: New Wine in Old Bottles?

Author

Listed:
  • Alcino Ferreira Câmara Neto
  • Matías Vernengo

Abstract

It has become common sense to argue that the reforms of social policies after the 1988 Constitution were somehow instrumental in explaining social progress, and that Lulas policies mark a break with the 1988 Constitution. We suggest that both propositions are misleading. We argue that the financialization of government expenditures has led to worsening income distribution, and by limiting the ability of the state to increase social spending it has limited the ability of the state to reduce social inequalities. We argue that a recovery of Keynesian ideas about full employment and the euthanasia of the rentier are central for the development of a more just and civilized society in Brazil.

Suggested Citation

  • Alcino Ferreira Câmara Neto & Matías Vernengo, 2006. "Lulas Social Policies: New Wine in Old Bottles?," Working Paper Series, Department of Economics, University of Utah 2006_07, University of Utah, Department of Economics.
    • Handle: RePEc:uta:papers:2006_07
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    References listed on IDEAS

    as
    1. Alcino F. Câmara Neto & Matias Vernengo, 2004. "Fiscal policy and the Washington consensus: a Post Keynesian perspective," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 27(2), pages 333-343.
    2. World Bank, 2002. "World Development Indicators 2002," World Bank Publications - Books, The World Bank Group, number 13921, December.
    3. James K. Galbraith, "undated". "What is the American Model Really About? Soft Budgets and the Keynesian Devolution ," Economics Public Policy Brief Archive ppb_72, Levy Economics Institute.
    4. FranÁois Bourguignon & Francisco H. G. Ferreira & Phillippe G. Leite, 2003. "Conditional Cash Transfers, Schooling, and Child Labor: Micro-Simulating Brazil's Bolsa Escola Program," The World Bank Economic Review, World Bank Group, vol. 17(2), pages 229-254, December.
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    Cited by:

    1. Matias Vernengo, 2011. "The Brazilian Economy after Lula: What to Expect?," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 12(1), pages 17-22, March.

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    More about this item

    Keywords

    Income Inequality; Social Policies; Keynesian Policies;
    All these keywords.

    JEL classification:

    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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