Leandro Ferreira*
In the 2018 election campaign, the idea of a universal basic income was present in the program of the main candidates for the presidency of the republic. At that time, Marina Silva, Ciro Gomez, Guilherme Boulos, Lula (later Fernando Haddad) and even Jair Bolsonaro mentioned that they would improve the policy of that time towards increasing the number of beneficiaries with the potential to achieve universality.
The Covid-19 pandemic played a decisive role in proving this: a highway was opened for people to receive government benefits through Emergency help, shifting incomes previously restricted to the poorest to more than half of Brazil’s population. The result of this, although poorly planned and poorly designed, is Help for Brazil, with vast resources and more beneficiaries than the Bolsa Família, not least because of rising poverty. Complete this script ruling of the Federal Supreme Court of 2021 on the regulation of federal law 10.835/2004 on the basic income of a citizenwhich Bolsonaro, strictly speaking, did not do with Auxilio Brasil and can still be questioned in court.
For the 2022 election results, this issue is even more relevant. It is understood that Bolsonaro is using the advantage of being in government to try to change the course of elections with public money. Proof of this are the advance payments of benefits and, in particular, the party Auxílio Brasil. It is necessary to react as soon as possible at the political level, in addition to judicial measures.
There is a clear erosion of support for former President Lula among the poorest segments of the population: false information is actively circulating among the beneficiaries that the current 600 reais will return to the nominal level of the Bolsa Família (about 190 reais), the name of which PT does not name. surrenders in his communication and insinuations that his election will mean the end of the party, contrary to what those who need it want.
Lula and PT, who received a well-deserved trophy for fighting poverty, correctly criticized the party. It is about the financialization of social policy and the opening of space for the market to become a provider of social policy. But what alternative is presented so far? The GOT proposal for a supplementary allowance for children aged 0-6 years has hardly had any impact and would not lead to a significant increase in the average allowance as long as it is within this range. Contrasting the possibility of having fixed, liquid, and secure capital in the hands of the poorest strata with the praise of past conventions and over-purposefulness does not seem to work.
An amount similar to that authorized by the consignee is used to settle rent arrears, bills or arrears, including in the informal market or between family members. Covers unexpected medical expenses during difficult times. It serves to improve living conditions from the door to the inside, through the acquisition of appliances and furniture. The liberal view believes that this resource is useful for creating or improving the conditions for the production of something that guarantees the family’s perpetual livelihood.
After all, it must be understood that the poorest also want and need access to the living conditions enjoyed by the upper classes, including access to credit. The problem is that in order to gain access to them, those who go through processes of vulnerability are exposed to the fury of the Bolsonaro government of the worst in the financial market. Interest on interest, which means not only worsening the financial future of these families, but also great risks for the whole society, which will see an increase in its army of debts. Even Milton Friedman, named on Bolsonaro’s program in 2018, would not bet on this path. The economist, idolized by liberals, some of them in government, understood that overcoming poverty meant promoting the common good, not predatory debt.
It would be better to offer the beneficiaries of Auxílio Brasil a supplement capable of guaranteeing survival, depending on the composition of their family. This alternative can be combined with large annual payments that act as a loan but do not expose beneficiaries to the risks they pose.
Proposals to adjust income transfers are nothing new. The time to reformulate the hugely successful Bolsa Família program is now, as all public policies are in the process of being revised. It’s time to finally move to a basic income, universal and unconditional. This is a lesson learned from the pandemic and a consequence of the 2018 election. After all, the money in your pocket remains one of the most decisive factors in determining the outcome of an election. Bolsonaro knows this and is trying to win the game at home.
*Leandro Ferreira, BSc Public Policy Management USP, MA Public Policy UFABC. He leads the Brazilian Basic Income Network.
