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A systemic error: how to change?

Rafael Herzberg's picture
Consultant energy affairs Self employed

Rafael Herzberg- is an independent energy consultant, self-employed (since 2018) based in São Paulo, Brazil* Focus on C level, VPs and upper managers associated to energy related info, analysis...

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  • Sep 2, 2022

A systemic error: how to change?

Brazilian government enters and government leaves and there is always a strategy: increase expenses that were not included in the budget.

As a rule they are associated with populism. But as the three Powers are perfectly tuned and interested in this increase in expenses, tradition prevails.

And so what?

When the budget is burst, the country's economic and financial situation is harmed and the result is well known: solid inflation.

At first, that of the "granting of benefits" linked to the increase in expenses, there is a positive wave. The glaring problems are mitigated.

But in the medium and long terms it is very expensive to pay for the inflation. It is a tax that unceremoniously affects the entire population, in particular the less favored.

The most interesting and convenient strategy would be to reduce expenses and balance the budget. As the consultants say, first kill the bear and then skin it!


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