[forinti]

Exactly, austerity was applied only on the demand side (social spending and infrastructure), but the problem was precisely the demand side. The private sector didn't need more loans or tax cuts, they needed customers and profits.

[brguy]

Most of the budget is fixed by law, so those were pretty much the only areas where costs could be cut. Social and infrastructure spending was actually record high before the crisis hit, so to say everything was caused by austerity is misleading.

[forinti]

Well, I didn't say everything was caused by austerity. I said austerity made it worse.

Social and infrastructure spending might have been high, but I think they were actually insufficient. Politics and economics are too skewed to the right in Brazil. Look at our budget surpluses for the last few decades:

https://brasilfatosedados.wordpress.com/2014/12/07/3047-supe...

And then look at the UK's budget history:

http://3.bp.blogspot.com/-u_6bLBEcvus/VIL2bc4et6I/AAAAAAAAB7...

Even Thatcher had deficits all along.

[andrenth]

> Politics and economics are too skewed to the right in Brazil.

This is the most absurd out of touch with reality statement I've read this week.

Brazil has 30+ parties almost all with "social" or "socialist" in their name. It's 50 shades of red down here.

[forinti]

It is a matter of personal opinion, after all. Anyway, I took the trouble to enumerate the ten largest parties in the brazilian congress and got their political position from Wikipedia (so as not to corrupt it with my own ideas):

PT - Centre-left; PMDB - Centre; PSDB - Centre (implemented neoliberal agenda in the 1990s); PP - Centre-right/Right; PSD - Centre-right; PR - Centre; PSB - Centre-left/Left; PTB - Centre; DEM - Centre-right (this I find hard to believe); PRB - Centre-right.

[woliveirajr]

Please give me some minutes to edit wikipedia skip you can get it right :-)

The "right" or "centre-right" would get votes from democrats with a big smile...