>>1026711 The same thing that went wrong with every single country south of the USA: invading a nation and replacing the population is hard as fuck.
The USA is one of the few successes in history and that's only because most of Europe chose it as their focus point for the "new world". Canada only had the USA as their neighbor so they didn't have much to worry about. Everyone else in the Americas are still facing issues to this very day in regards to controlling their population to keep crime down, they never truly stabilized.
>>1026711 they built an inefficient economy laden with state-run companies and corruption. government is an inefficient allocator of resources, nothing new here. everything looked fine for a while because brazilian industry had one huge customer. once the chinese demand got pulled the whole thing fell to shit. i still think they'll be fine though, the brazilian people need to realize they need more freedom and more capitalism and shift their economy to more of a domestic model.
Brazil is poor because it doesn't produce anything of value, only basic commodities like soy, beef and pig iron. Everything technology related is imported. All automobile factories are owned by foreign companies. The economic growth it experienced a few years back was luck that the commodities market was booming, once that died down they immediately crashed. There are no incentives for development of indigenous industries. Corruption isn't that big of a problem compared to how the government gets in the way of local companies. Red tape, red tape everywhere. Its just a very badly managed country.
Many countries in the Americas managed to genocide their Indian population (Cuba, Haiti, Argentina, Uruguay). Also in Brazil the natives are like 0.7% of the pop. and are concentrated in the Northern and Western states.
>>1026711 Well corruption obviously played a part in it, also the government's excessive overreach. However, the main reason was the response to the 2008 crisis.
We were still riding the China wave and the associated commodities boom. To fend off the crisis our government opened the floodgates of cheap credit through the banks they have majoritarian control over and the state development bank (BNDES).
Which was, I believe, correct at the time. However these two things combined created an artificial boom from 2010 to 2012. The government should have reverted the easy credit policy by the end of 2010 at maximum, but they got too drunk on it. From 2013 onward they started to manipulate everything they could in order to look nice and ensure a reelection, from artificially low rates and state controlled tariffs freezes (also gasoline, which we have to import through Petrobras) in 2013 to flat out book cooking in 2014.
2015 should have been a correction year, but they failed to do everything due to the political crisis (happens when you win a election based on lies and then do what you accused your adversary of wanting to do) and now things are spilling into 2016 and if they don't put their act together in Brasilia maybe even 2017.
PS.: Wasting the Chinese/commodities boom was an error worse than it seems. We have a ridiculously low savings rate (below 15% if I am not mistaken), all open market credit is expensive as you would not believe. The boom should have been used to build up the savings rate.
Well, at least I am getting some nice fixed income returns, so I can live.
Draconian populist-left policies absolutely destroy countries, who would have thought? Brazil, Argentina, Greece, Spain, I could go on and on (not even counting Venezuela here because that's a whole different beast).
Yet there are still people that support Bernie Sanders. It truly boggles the mind
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