Fiscal budgetary deficits, high taxes, and manipulative business regulation threaten to tank the already bruised Brazilian economy. The country has for the past few years seen a consistent decline in performance of the national economy with the government doing little to help. It is however quick to publicize minimal improvements that such industry titans as Luiz Carlos Trabuco Cappi can only refer to as chicken flight. Carlos goes further to explain this short-lived boom arguing while warning businesses not to get too complacent but brace for harder times.
Speaking during a recent World Economic Forum session held in Sao Paulo, Brazil, Luiz Carlos Trabuco Cappi supported the chicken flight claims by arguing that the country had adopted a cyclical economic trend. This means that it isn’t growing but rather experiences short-lived episodes of market recovery that are closely followed by recession. He compared the current economic recovery being experienced by different industries in Brazil to the 2016 boom that precedent a severe halt in the financial period leading to 2017.
Therefore, instead of getting comfortable with the boom, Luiz Carlos Trabuco is of the opinion that businesses should brace for tough times ahead. He would nonetheless mention that the country can still escape this tedious cycle and revamp their economy by implementing a series of legislative reforms. Such would include policies that seal holes within the public accounts departments as well as others that set a ceiling to government spending.
Cushioning majority citizens
According to Luiz Carlos Trabuco Cappi, the economic turmoil experienced in the country has also exposed the inequalities between the majority of the citizens and the elites. For instance, some individuals receive pensions 15 times the maximum allowable in the private sector. The long-term banking industry player would point to this as one of the causes of the ever-burgeoning public sector budget. He would go on to point at this as the primary reasons he is backing the calls for the pension reforms that would harmonize pension payments within the public sector.
About Luiz Trabuco Cappi
Luiz Carlos Trabuco Cappi has carved himself a niche in the Brazilian Banking and investment industry where he is considered one of the most followed opinion shapers. The fete is well deserved considering it was acquired after years of hard work in the industry and climbing the ladder to head one of the country’s biggest bank, Banco Bradesco S.A. Here, Luiz Carlos serves as its chairman to the board, a position he assumed in 2017 as well as Chief Executive Officer, a position he has occupied since 2009.