From the gold bricks to the bricks, Brazil cried losing the real economy and ruining a strong coun

Mondo Finance Updated on 2024-02-05

[Editor's note: This article is the original and exclusive first release of Toutiao, please do not plagiarize**].

When it comes to "de-industrialized" countries, the United Kingdom and Brazil are famous. The difference is that one is at the top of the pyramid and the other has fallen from the former pyramid into the abyss.

The country that has fallen into the abyss is Brazil. It has the fifth largest land area in the world. The country is rich in various resources, and Shinong Industry and Commerce is far ahead.

However, the country has been in decline step by step due to repeated decision-making mistakes. In January 2023, Lula, who is approaching the age of 80, was re-elected.

He made it clear that he hoped that by the end of his term, the Brazilian people would no longer suffer from hunger. Why did Brazil, a big country that used to be the "breadbasket of the world", have such a situation?

——Accumulation of hard returns, Lula's ambition]——

The current dilemma for the Brazilian people is that a large number of people live on subsistence allowances. There are two reasons for this predicament.

That.

First, the inequality between the rich and the poor. Brazil exports coffee and iron ore in a staggering amount, but the profit-making capitalists get the majority and the intermediaries get a small share.

Because of Brazil's long-standing policy of "liberal democracy", the toiling masses at the bottom have no benefit at all, and the authorities are helpless about it.

That.

Second, there are few jobs. Japan is also a small country, but it allows the existence of small private workshops, which also relieves the official economic pressure to a certain extent.

Brazil, on the other hand, has a serious imbalance in light and heavy industry. Therefore, after the decline of heavy industry, due to the lack of attention to light industry, the number of unemployed people increased sharply.

There are no more than 200 million people in Brazil, and in 2017, there were 50 million poor people in Brazil. After vigorously alleviating poverty, by 2022, it will increase to 67.8 million.

Some particularly poor households are still poorly clothed and hungry. This is also the fundamental reason why Lula issued a grand ambition after he came to power again.

In the past, Brazil was blessed with unique talents in all aspects, like the pride of the sky. Mistakes in decision-making again and again eventually turned "gold bricks" into "slab bricks".

——Reasons for bricks, advanced consumption]——

The first reason why Brazil has changed from "BRICS" to "bricks" is that it consumes ahead of time.

In 1822, Brazil declared its independence. For more than 100 years, Brazil has been committed to economic development. But the colonial economic system and its influence on the Brazilian people were deeply rooted.

This led to a serious imbalance in the economic development of Brazil at that time. When the Brazilian authorities discovered the problem, they began to restrict tariffs and vigorously develop local businesses.

The Brazilian authorities intend to create an economic kingdom that produces and sells itself and is safe and secure. This vision is not unambitious, but people will eventually be different, and dreams will eventually be empty.

Most Brazilians are born wealthy, which means they have little concept of money. Not only do most civilians not save money, but even some entrepreneurs with a lot of money don't save money.

In times of peace and prosperity, such habits have no effect. But if the times are turbulent, it's a different story. Brazil, on the other hand, has always been a democracy and does not have much financial surplus.

For the Brazilian authorities, if they want to vigorously develop the economy and stimulate the economy, it is absolutely impossible to do without money. Fortunately, there is no money to borrow, so Brazil has borrowed from neighboring countries and some countries in the world.

Since it is borrowing money, it has to be repaid after all. Brazil came up with a brilliant idea for repaying the money. That is, the borrowed money is used to develop industries and exports, and then the money earned from exports is used to pay off debts.

This approach was not problematic at first, but over time, it became so easy that Brazil later had to use half of its foreign exchange to repay its debts every year.

Advance consumption can only be used for emergency purposes, and cannot be relied on for a long time. At that time, Brazil may not have realized the seriousness of the problem, perhaps it was aware of it, and it was not taken seriously.

At that time, Brazil's manufacturing industry was in short supply in various countries, and Brazil always thought that this phenomenon would last forever. Even when Brazil is heavily indebted, it always feels like it has a long way to go.

The frightening thing is that people in Brazil have adapted to this habit of advanced consumption. Once there is any change in the export manufacturing industry, the economic situation is in danger of falling in an instant.

-- Causes of slabs and bricks, industrial imbalance] ——

The second reason why Brazil has changed from "BRICS" to "Slab Brick" is the industrial imbalance.

During World War I and World War II, there were many wars, and all countries in the world were miserable and overwhelmed. But even the biggest fighting will not affect Brazil in the slightest.

At that time, Brazil was single-minded and enthusiastic about the development of industry. By 1920, more than 130,000 businesses had sprung up in Brazil. After World War II, industrial GDP had reached its peak.

Brazil's three major industries, shipbuilding, aviation, and railways, once led the world, but then the problem occurred was the railway industry.

In 1969, airlines were established in Brazil. For the whole world, it was far ahead, and Asia at that time was extremely backward compared to it.

By 1970, Brazil was a veritable shipbuilding power, ranking second in the world. The number of direct or indirect employees is as high as more than 100,000.

But then there were problems with the development of the railway, because most of the contractors for the construction of the railway were private enterprises. This is related to the "privatization of industry" that Brazil has always advocated.

This is where the importance of uniform weights and measures comes in. The specifications and grades used by each company in the construction of railways are different.

The difference in materials is only a minor issue. Seriously, the other end of these railways is not connected to other railways, but to the entrepreneurs' private industrial parks.

In this way, the problem is big. Even if the official wants to unify the scheduling, there is no clue. Brazil's policy of "liberal development" is at the root of this.

If you want to get rich and build roads first, although Brazil developed earlier, as far as the railway is concerned, it is a mistake after all. The development of heavy industry has been unbalanced. However, there is a huge gap in the development of light and heavy industries.

Compared to light industry, it is much weaker. Brazil's population was only a little over 100,000 at its peak. The shipbuilding industry alone provides more than 100,000 jobs.

So much so that Brazil does not have so much manpower to develop light industry. After leading the world in heavy industry, it should have focused on the development of light industry to counterbalance, but Brazil chose a path to go black.

Soon, Brazil, which was ahead of the imbalance in the consumption industry, ushered in a "salary draw from the bottom of the kettle" in the economy.

-- Salary drawn, debt-ridden] ——

In 1984, the manufacturing sector was the last of Brazil's total GDP, accounting for an all-time high of 31%. At this time, the prosperity was over, but three years later, it became a thing of the past.

In 1987, Brazil was in economic trouble. The reason for this is that the prices of various materials exported have jumped off the building. Brazil has historically been ahead of consumption, using foreign debt to develop manufacturing for exports.

In the early stage, half of the foreign exchange can be earned, and the foreign exchange earned in the later stage has plummeted due to the price reduction. In desperation, Brazil officially announced that it would suspend the repayment of principal and interest to various countries.

It is natural to repay debts, how can you face the aggressiveness of a group of creditors if you don't pay back? As a result, Brazil made a decision that was later regretted and sold off the airlines.

As soon as the precedent of losing the real economy opened, it could not be contained. Coupled with another wrong decision by Brazil, Brazil's overall economy has already begun to decline.

This decision is to open up to the outside world in an all-round way and develop a consumption-oriented economy. In other words, after Brazil sold its airlines, it began to develop the tertiary industry.

Although in the 21st century, all countries in the world are transforming and developing the tertiary industry, but for Brazil at that time, it was obviously out of date. Brazil's own industrial system was not firmly established, and it began to "deindustrialize".

Brazil has always had the habit of advanced consumption and took the liberty of developing the tertiary industry, and the final result was to draw a prison and an economic prison.

From 1987 to 2017, Brazil has been committed to the development of the tertiary sector. The original domestic manufacturing industry has been severely weakened.

As a result, Brazil's manufacturing industry only stays in the most basic industries such as coffee, beef and mutton. These industries are universal, and the competition was once fierce.

Brazil's light industry has always been neglected, and now the tertiary industry is vigorously developing, and the living space of light industry has been compressed again and again.

In 2018, Brazil made the list of seven companies in the world's top 500. There are 3 in the tertiary industry and 3 in heavy industry, and the remaining 1 is in light industry.

The industrial competition of countries around the world is, in the final analysis, manufacturing. Brazil's unique conditions have been wasted again and again, so that it continues to fall into economic difficulties.

As early as 1979, Brazil's GDP per capita surpassed that of South Korea. By 2017, GDP per capita was less than one-third of South Korea's.

The house is full of gold and jade, and Mo can keep it. Brazil, which is rich and rich, has fallen into the abyss because of wrong decisions again and again.

——The Chosen Son, reduced to bricks]——

From God's point of view, Brazil is a veritable "darling of God".

Brazil's geographical location can be said to be extremely superior, to what extent, even the catastrophe of World War I and World War II did not affect it, but followed the United States to "lie down and win".

Brazil is located in the east of South America, in addition to its geographical location, the domestic resources are also quite abundant, once coveted by Japan.

Brazil is the fifth largest country in the world in terms of land area after China, the United States, Russia, and Canada. With a mild climate all year round and fertile land, Brazil can easily take off.

Compared with the Gobi Desert in the United States and the freezing weather in Russia, Brazil can be said to be a paradise for mankind. At one time, Brazil was far ahead of the world in the development of agriculture and commerce.

Rare diamonds, ** oil, iron ore and other resources are also idle in Brazil. Brazil can be said to be born with a good skin, but after all, the belly is reckless.

Brazil, as the darling of God, is a well-deserved "BRICS" country. The wealth that the Brazilian people possess is innate and basically enjoys it.

In the early days, the Brazilian people were rich and idlers, but as time went by, these people began to lose. Once the loser loses, no matter how big the foundation is, it can't withstand the squandering.

Up to now, Brazil, which has a history of more than 200 years, has embarked on a different "deformed" path. The former "gold bricks" of South America have also become "slab bricks".

——Conclusion]——

If you govern a big country and cook small food, Brazil is a proper negative teaching material.

It is hoped that before the end of Lula's term, Brazil, which has been struggling to return, will see a significant improvement. As a result, the problem of food and clothing is no longer a problem, and the economy has also recovered significantly.

I sincerely wish that Brazil can change the world.

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