Dollar Hits R$6.27: The Price of Political Irresponsibility

Hello friends, how are you?

Yesterday (Wednesday), December 18th, an event happened that marked Brazil's economy, the dollar closed its historic high at R$6.27. This just shows how much the real, the local currency, is increasingly losing its purchasing power. Some may say that the future is still uncertain, but my friends, what is happening and what is to come will undoubtedly be a dark and dangerous future for the people of Brazil.

The economic scenario is not at all encouraging for Brazil, unfortunately many Brazilians have no idea what is happening right now. This only shows the ignorance of a large part of the voting population who, whether they like it or not, are also responsible for what our country is going through. It's sad and disappointing to imagine that my vote has the same weight as those people, but in a civilized and democratic world, that's what happens, right?

The Poor Don't Eat Dollars

This is the intellectual level of a part of the Brazilian people, unfortunately, many people do not understand the consequences that the constant rise of the dollar in our local currency can have. But one thing that everyone is quickly starting to notice is the increase of products in the supermarket. Just so you know, a kg of coffee on the shelves of any market today costs an average of R$60.

This is absurd if we consider that Brazil is a world producer of coffee and is also responsible for 30% of production in the world. How is it that in a country where there is so much coffee, the price that reaches the market for the Brazilian consumer is extremely expensive? Well, there are some factors that contribute to this, such as high taxes and production costs, for example. But a large part of the Brazilian people don't understand any of this.

The current government has never spent as much as it does now and to make our situation worse, these absurd expenses are for no reason at all. A lot of irresponsibility from the State and I had never seen a government create so much tax in less than 2 years in office. The pandemic is over, there is no reason to justify these attitudes of unrestrained spending and taxes created every week.

The Most Strong Inflation in Brazil

Basically inflation is a general increase in products and services in an economy. This reduces our purchasing power and this generates a devaluation in our local currency. While in the past we paid R$0.10 for a loaf of bread, today in some places it is possible to pay for the same loaf for R$1.00.

I remember very well when I was a child and I went to buy bread at the bakery, my mother gave me R$1.00 and asked me to buy all the bread and guess what, I came home with 20 loaves, that is, each loaf cost just R$0.05 and this is a beautiful example of what inflation causes in our currency over the years and the trend, from what I'm seeing, is going to get even worse.

Meanwhile, the Brazilian people, especially the poor, are the ones who suffer most from all this. If it was already difficult to survive with little money, imagine now that due to inflation, purchases will be less and less and while more money is paid in the markets, people take fewer shopping bags home. If the traditional media "hides" what is really happening with the economy in the country, but Brazilians already feel this going to the market.

Recently, something very funny and curious happened to me at the same time. My mother asked me to buy something for her and she only gave me R$100. She had given me a list and then I went to do my shopping and hers. Arriving at the checkout to pay, her purchase ended up being R$127, an increase of 27% due to the products that she imagined that the 100 reais would be enough to buy everything.

When I arrived at her house, I explained that due to inflation, those 100 reais from the past are not the same as today. Purchasing power is lower compared to a few years ago and we need to adapt to avoid this type of mistake happening again. I even understand my mother, because she is elderly, but to survive in today's times, we have to know very well what to spend and what to stop spending.

Therefore, measures could cause some type of reaction in the market, but as long as this current government continues, we will all suffer the consequences. If schools had classes on economics, I can say that this scenario that Brazil finds itself in would be practically impossible for this to happen. But unfortunately, education is not a priority in this left-wing government and the worst part of all this is that things will get even worse.

Posted Using InLeo Alpha