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O povo em primeiro lugar

Economic Impact

 

Virtuous Circle

The Bolsa Família moves local trade and commerce and generates employment. Photo: Eduardo Aigner/MDS
The Bolsa Família helps not only the families that receive the benefits but also local trade, industry and agriculture.  The beneficiary uses the funds to make purchases that start the wheels of the economy turning.  With the increase in sales the small merchant hires a helper and buys more from the local producer and he, in turn, buys more from the producers who increase production and recruit more workers, with their new jobs the helpers hired by the merchant and the workers hired by the producer increase their purchasing power and begin to consume more – and so on, and the wheels of the economy continue to turn in a virtuous cycle.

The Bolsa Família and the Economia according to Ipea, see here