Austerity on the march in Portugal and Brazil


The austerians, the folks who impose a “new fiscal order” on nation-states in order to assure the ongoing profits of banksters and corporateers, are exercising their reign across the globe, forcing governments to public abandon healthcare systems, public spaces, public sector pensions, and other institutions that had characterized the post-World War II political and social landscapes.

The rhetoric the austerians use is inevitably pretentious and portentous, declaring, in effect, that the plight of the poor in developed in late-stage developing nations is essentially their own fault, and that programs designed to lift them from poverty are really sloth-inducing handouts.

The bottom line, of course, is the bottom line. Not the bottom line of the social contract, but the bottom line on corporate and banksters spreadsheets.

Austerianism, in short, makes the world save for corporatocracy.

Two classic examples can be found in events unfolding in two nations an ocean apart, yet united by a common language.

Austerity on the march in Portugal

Portugal, one of the PIIGS nations [along with Italy, Ireland, Greece, and Spain] of post-Bush crash Europe, has never recovered from the crash, and state financing has been critical to keeping the country viable.

But enough is enough, the austerians have decreed.

From United Press International:

European Union finance ministers supported sanctioning Spain and Portugal for breaking targeted budget deficits Tuesday.

The EU’s economic and financial affairs council decided Spain and Portugal should be sanctioned for breaking rules that countries’ budget deficits must remain within 3 percent of gross domestic product.
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“The Council found that Portugal and Spain had not taken effective action in response to its recommendations on measures to correct their excessive deficits” the European Council said in a statement on its website on Tuesday. The Council’s decisions will trigger sanctions under the excessive deficit procedure.”

According to the EU, Portugal and Spain have 10 days to appeal the decision. And the commission has 20 days to recommend fines that could amount to 0.2 percent of GDP.

But top EU officials have indicated the sanctions are likely to be symbolically set at zero, according to the Wall Street Journal.

In other words, Portugal has just been served notice.

Austerians and the Brazilian coup

The government of Brazilian President Dilma Rousseff, while less than perfect, had been struggling to keep the social contract alive, but that didn’t suit the Brazilian plutocracy, the spiritual descendants of the colonial land and cattle barons who exploited the native population and were the largest buyers of African slaves, outstripping the American South by far.

They used their bought-and-paid-for legislators to oust Rousseff through a vote of impeachment for crimes that, events have subsequently made clear, could be more rightly charged to them than to Rousseff.

And now, challenged with potential criminal charges for their own looting, they are busily engaged in the sell-off of the Brazilian commons, opening up endangered landscapes for industrial agriculture, displacing native populations, and generally grabbing up as much as they can whilst the sun still shines.

The latest grab, via teleSUR English:

Brazil’s unelected interim President Michel Temer said his government is considering the privatization of two of the country’s busiest airports in Sao Paulo and Rio de Janeiro.

“It is possible that we will privatize Congonhas and Santos Dumont, which should give a good sum” of money, Temer said in an interview with the Folha de S.Paulo website, referring to Congonhas airport in Sao Paulo and Santos Dumont in Rio de Janeiro.

The interim government, imposed by the Brazilian Senate, is considering two options for privatizing the airports: one would keeping the government airport authority Infraero as a minority partner while giving most control to private companies, while the other would keep Infraero as the biggest stockholder with 51 percent of shares while private companies would manage the airports.

In both cases such moves would lead to thousands of people losing their jobs, as private contractors would seek to bring in new staff with new contracts and less oversight by the state.

Temer said the sale of state assets and major privatization plans is meant to generate sufficient revenues to meet the fiscal target for 2017, which foresees  a deficit of around US$42 Billion.

So who are the Brazilian lootocrats?

Glenn Greenwald has conducted a fascinating interview with U.S.-born Portuguese-speaking journalist Alex Cuadros, who covered the Brazilian plutocracy for Bloomberg.

Author of the just-published Brazillionaires: Wealth, Power, Decadence, and Hope in an American Country, a book on Brazil’s financial elite, he describe the relevance of the Brazilian experience for folks in the U.S.

From the Intercept:

[T]he relationship between Brazil and its billionaires is relevant to an American reader. There was something about studying this relationship in a country that’s not my own, where I don’t have nearly as much baggage, that made it easier to see how it works. But really it’s a relationship that exists in most countries today. In the end I think that the Brazilian billionaire tradition is simply an extreme version of a natural relationship between wealth and political power.

There are some differences. In Brazil, partly because the state has always had a large presence in the economy, a lot of wealthy families owe their fortunes to personal connections to the government or even outright corruption. This clashes with the American ideal of the self-made man who gets rich thanks only to his own talent and hard work.

But of course, if you look at the richest people and companies in the U.S., they tend to defend their fortunes by putting their money to work in the political system, swaying the rules in their favor through lobbying, campaign donations, and other, less transparent contributions. Obviously there’s a difference between outright graft and legal forms of influence, but the desire and the effect are often similar: to allow the very rich to claim a larger piece of the economic pie without necessarily making the pie larger.

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