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Learn more about the impact of the minimum wage on the economy

Download the report in PDF.

Funds in the hands of the poor drive retail sales

Retail sales volumes have doubled in the last 12 years, with record job creation, minimum wage recovery and cash transfer programs. The 42 million people who entered class C are responsible for the expansion of the consumer market, and supply of credit is one of the main tools. Class C, which in 2003 represented 38% of Brazil's population, has grown to 54%: 108 million people consumed R$ 1.17 trillion in 2013 and were responsible for 58% of credit transactions in Brazil, according to the Datapopular institute.

The Minha Casa Melhor (My Better House) program focused on the beneficiaries of the Minha Casa Minha Vida (My House, My Life) program, implemented by President Dilma offers a line of credit of R$ 5000.00 per family, with subsidized interest of only 5% per year for the purchase of furniture and appliances such as a sofa, table, bed, washing machine, refrigerator, digital TV, microwave and tablet. Not much? Altogether R$ 18.7 billion will be injected into the economy. The comfort and access to durable goods at one end means more production and employment at the other. It's win-win for both sides. Brazil wins.

Learn more about the Minha Casa Melhor program.

Income improvement comes with more health and more education

The elimination of extreme poverty and the rise to class C of millions of Brazilians generate increased consumption, more production and investment, a record number of jobs. And also create another virtuous circle, helping to build a better country. With Bolsa Família, for example, parents can keep their children in school — indeed, they are required to do so. The program cares for children from an early age, even before birth: prenatal testing, periodic medical evaluations and vaccine coverage. Growing in a healthier manner and with more education children become more skilled adults for the job market. Their children will no longer have to receive the Bolsa Família. They will have a new path featuring other opportunities: kindergarten, full time school, a technical education, access to higher education ... These are doors that were opened by the Lula and Dilma governments and they do not stop growing.

Learn more about access to education.