Passe Livre Movement protest. Newton Menezes/Futura Press. All rights reserved
In June 2013, the fuse for the large demonstrations in Brazil was the fare price increase of public transportation, which immediately affected millions of people. At the time, the increase was 20 cents. 2016 has begun with protests against the increase in public transportation fares throughout Brazil. In Sao Paulo and Belo Horizonte, it has gone up 30 cents; in Rio de Janeiro, 40. Like they did three years ago, the protests are being drawn to the Passe Livre Movement (MPL), a small autonomous group advocating full public subsidy for public transportation, so that the cost to the users is zero. The difference between 2016 and 2013 is that, today, an economic and political crisis with no end in sight is providing the powder that any spark can ignite, setting off massive turmoil. Disenchantment with politics is widespread, and so is indignation about corruption scandals, the loss of purchasing power, rising unemployment and lack of economic prospects.
Transportation fares are just one among many rising costs. In a context of diminishing wages, electricity rates, petrol, rents, school supplies and other basic items are increasing. At the close of 2015, inflation was 10.7%, the highest in 13 years, well above the official target of 4.5%. It rose even above savings, hurting mostly small savers who are not investing in more profitable products. On this issue, the government clings to a policy of expenditure contraction, cutting public investment and reducing social rights and benefits. The fiscal adjustment austerity program, coupled with an unfavourable international context, inhibits the government’s capacity to react to the recessionary spiral.
