Brazil's so-called class C is being pushed quickly back to classes D and E. This is the biggest novelty of the Brazilian economic landscape at the beginning of this century.
People in class C find themselves headed to poverty due to the consequences of Covid-19 and the disorganization of the Jair Bolsonaro government's (no party) pandemic mitigation policies.
Research from different agencies reveals not only that tens of millions of Brazilians are going back to more precarious situations since last year but that their lives may continue to get worse in 2021.
While the more privileged classes are beginning to stabilize income or make gains, classes D and E are likely to experience another drop of almost 15% in their income this year.
This will not only increase Brazilian social inequality, but will slow economic recovery.
The gigantic low-income population will consume less, which will require less investment and less hiring of new employees by the productive sector.
Translated by Kiratiana Freelon