COVID-19: Study evaluates impacts of emergency basic income program on Brazilian economy
Three researchers at the Center for Studies on New Developmentalism (CND) at the FGV´s Sao Paulo School of Business Administration (EAESP), Marco Brancher, Guilherme Magacho and Rafael Leão, have produced a study about the economic impacts of the coronavirus and emergency basic income programs.
The study examined the impacts on the Brazilian population’s income and employment, as well as gross domestic product. It also analyzed a proposal to pay those most affected by the crisis an emergency basic income of one minimum salary (R$1,045) per month and the effects this would have on income, employment and GDP. The results obtained were compared to the emergency basic income of R$600 per month recently approved by Congress.
The researchers found that an emergency basic income of one minimum salary would boost GDP by R$76.5 billion per month and create 16.7 million jobs. This would prevent losses equivalent to 3.1% of GDP in 2020 if this program were to run for just three months. According to this study, the proposal approved by Congress would create 7.1 million jobs and boost GDP by R$32.6 billion a month, equivalent to 1.3% of GDP in 2020.
The purpose of the study was to expand discussions about the need to implement an emergency basic income program in Brazil and its impacts on the economy and jobs.
The complete study is available here.
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