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Empregos e Salários

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The C Class already is the majority of the population, injects more than R$ 1.17 trillion into the economy

As a result of these continuous wage adjustments over the past decade, the wage share of GDP in Brazil has increased. That is, workers’ progressively have a greater share in production of the country's wealth through their earnings. After a downward trend dating from the beginning of the FHC government, the wage/GDP ratio began growing again in the Lula and Dilma governments, going from 46.26% in 2003 to 51.40% in 2009, including social contributions of workers and excluding freelancer remuneration.

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It’s not only the millions of workers who receive the wage gains who are positively impacted. The funds that go into the pocketbooks of working women and men feed consumption and turn the economic wheels of the country. The increases granted in 2013 alone should inject about R$ 12 billion more into the Brazilian economy in 2014, according to DIEESE data.

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"The main thing is we now have a law that gives security and stability to the workers who earn [the] minimum wage. (...) Everyone knows beforehand what the rules and criteria for raising the minimum wage will be from here until 2015. An adjustment for inflation is not enough to increase the purchasing power of the minimum wage over time. Everyone deserves a better life, isn’t that true?"

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English

At the beginning of the Lula government’s second term in 2007, government and unions reached an agreement that became known as the Minimum Wage Valuation Policy: the MW would be adjusted each year based on the variation of the Gross Domestic Product (GDP) in the previous year (2014 considers 2012’s GDP), plus the previous year's inflation as measured by the National Consumer Price Index (INPC). In the Dilma government, in 2011, approved by the National Congress, the policy became Law No. 12,382, effective 2015.

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Not only did the real increase of 72.75% of the minimum wage replace the losses suffered by workers during the lost decade of the 1980s and the 1990s neoliberal period — marked by low growth and the privatization — but also it safeguarded the greatest increase in purchasing power in its history. Considering the most expensive basic products basket values in January this year (R$ 325.26), the worker today has a purchasing power equivalent to 2.21 baskets — by far the best minimum wage/average food basket ratio recorded annually since 1979.

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The increase in the number of public servants has been carried out at a constant and responsible fashion under the PT administrations without leading to imbalances or excessive deficits in the fiscal accounts of Brazil.  According to a survey by IPEA, spending for active and retired personnel at the three levels of government, have been maintained at stable levels in relation to the size of the GDP.

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There is a lot of misinformation and bad faith in the discussion of the need for strengthening public institutions, especially those that directly serve the citizen. Supporters of a Minimal State are the first to attack the supposed bloated machine. For them, Brazil should follow the example of the so-called First World countries: reducing personnel and maintenance costs of the government, giving private initiative the prerogative of providing essential services to the population.

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