“Eating baloney and burping caviar”
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Brazil is dealing with its biggest protests in 20 years — while in the midst of hosting the Confederations Cup and spending approximately $28 billion to prepare for next yearâ€™s World Cup and the 2016 summer Olympics.
The protests started last month over a 7% hike — about 10 US cents — in bus fare prices. But they have now turned into an outcry over stagnating economy, political corruption, and public spending priorities. Though Brazilâ€™s biggest paper seems confused by the whole thing, #ChangeBrazil has a pretty simple video explainer of the protests here.
In 2010, Brazilâ€™s economy was growing at a blistering 7.5% and was the envy of the world. This year, Brazilian economists expect economic growth of under 3%, and first quarter growth came in at just 0.6%. Unemployment, at 5.8%, however, is near a record low, and the countryâ€™s ambitious stipend program has pulled some 36 million out of extreme poverty since it began in 2003.
The more immediate problem, Bloomberg writes, is inflation:
After a decade that saw 40 million people rise from poverty, Brazilâ€™s middle class finds itself squeezed by faster inflation, rising debt and a weaker currency. Consumers are spending less at supermarkets and hairdressers as the classic weekend event, a prime cut barbecue, becomes a stretch for some.
Food prices in particular rose at double the rate of inflation last year, Bloomberg adds. No surprise, then, that tomato prices have landed on the cover of national magazines. That transportation increase, Roberto Ferdman writes, means Brazilians making minimum wage could end up spending as much as 26% of their income on bus fare.
The glitz of Brazilâ€™s sports spending hasnâ€™t fixed the countryâ€™s more pressing needs. Travis Waldron flags some details: Government watchdogs say that more than 80% of Brasiliaâ€™s schools arenâ€™t up to basic standards; in Cuiaba, 70% of the cityâ€™s wastewater is left untreated.
One prominent Brazilian sports writer borrowed a local phrase to describe the disconnect between Brazilâ€™s image and its reality: “We’ve been eating baloney and burping caviar.â€ť — Ryan McCarthy
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