The Brazilians may not know how to run an Olympics, but they are just aces at impeachments.
Americans should take note.
After a lengthy period of deliberation, the Brazilian parliament has formally removed from office President Dilma Rousseff, the corrupt left-wing populist who has been trying to do for Brazil what Hugo Chávez and his epigones did for Venezuela.
The entire Brazilian political class has been in bad odor of late, with a wide-ranging corruption scandal at the state-owned oil company reminding the world why sensible people do not think much of state-owned enterprises, petroleum-oriented or not. Brazil was riding high for about five minutes there while commodities prices were unusually strong, but President Rousseff’s anti-business, anti-trade, anti-investor, welfare-statist agenda — which differs from the current Obama-Clinton-Sanders-Trump economic vision mainly in aggressiveness rather than substance — did what it usually does. Unemployment and inflation took off, and public-sector spending increased radically, resulting in an unbalanced fiscal position that caused Brazil’s government debt to be downgraded to junk-bond status.
As with the food riots in Venezuela, the Left in Brazil and internationally has whispered darkly that this represents a “coup” against a populist progressive who angered the world’s corporate bosses and free-market fundamentalists. “Corruption is just the pretext for a wealthy elite who failed to defeat Brazil’s president at the ballot box,” the Guardian sniffed. The truth is that Brazilians are not eager to go back to being the country in the Western hemisphere that people cite to illustrate what India used to be like.
What is of note is that Brazilians have made the connection between corruption and poverty.
Rousseff’s corruption, at least that which has been persuasively documented, is pretty small stuff by Brazilian standards — indeed, by U.S. standards. It is “pedaladas fiscais,” what we might call “creative” public finance. Brazil has state-run but notionally independent banks and pension funds, whose coffers were raided through a series of loans to the Brazilian government in order to hide the fact that the government’s finances were such a complete and total shambles that payments otherwise could not be made to popular programs such as cash handouts to the poor and housing assistance — the stuff that politicians such as Rousseff and her party use to buy loyalty. In the United States, that sort of thing is just standard operating procedure for the federal government when it comes to things like Social Security, and for local government when it comes to public employees’ pensions: magical accounting.