A decentralized look at the U.S.-China trade war

For the time being, it is highly unlikely that the Trade war between Beijing and Washington will be resolved. In May 2019, Trump increased tariffs on Chinese commodities (worth $200 billion) from 10% to a whopping 25%. So far, the US has imposed tariffs worth about $250 billion on China, while China has retaliated with tariffs on US goods estimated at well over $100 billion.

It would be pertinent to point out that trade disputes have not been restricted only to Washington and Beijing. Imposition of tariffs has been a bone of contention with numerous US allies, including Japan.

Of late, trade issues have resulted in major differences between New Delhi and Washington. Even though there are convergences between both countries on numerous strategic issues, resolving the differences between both sides on trade-related matters is likely to be an onerous responsibility.

In response to tariffs imposed by Washington, New Delhi retaliated, and has imposed tariffs, estimated at $200 million, on 29 commodities (including apples, almonds, and chickpeas). India’s decision was a response to Washington’s decision to impose tariffs, of 10% and 25% on aluminium and steel, in May 2018. Last year, New Delhi refrained from imposing tariffs, but did raise import taxes on a number of US goods to 120% after Washington declined to exempt New Delhi from higher steel and aluminium tariffs. The key propelling factor for India’s recent imposition of tariffs was the US decision to scrap the Generalized System of Preferences (GSP) for India from June 5, 2019. India benefited immensely from this scheme, as it allowed duty-free exports of up to $5.6 billion from the country.

Pressure on Trump

Even though no solution is in sight, there are a number of lobbies in the US, especially trade groups and US businesses, which have been repeatedly urging the Trump Administration to find a solution to the current impasse with China.

Only recently for instance, 600 companies, including Walmart, in a letter to the U.S. President, urged him to resolve trade disputes with China, stating that tariffs were detrimental to the interests of American businesses and consumers. The letter was sent as part of the ‘Tariffs Hurt the Heartland’ campaign.

To underscore the detrimental impact of trade wars on the American economy some important estimates were provided. The letter stated that tariffs of up to 25% on $300 billion worth of goods could lead to the loss of two million jobs. Costs for an average American family of 4 would also increase an estimated $2000 if such tariffs were to be imposed.

Reports indicating the challenges to the US economy and FDI from Chinese companies in US

A number of surveys and reports illustrate the profound challenges which the US economy is facing, as well as a drop in FDI from China.

The University of Michigan’s consumer sentiment index also revealed a drop in consumer sentiment from 100 in May to 97.9 in June. This was attributed to trade wars between China and the US.

According to a survey released by the China General Chamber of Commerce USA, investment by Chinese companies in the United States has witnessed a significant decline since 2016 (including a sharp drop in 2018 and early 2019).

A number of important events have been held recently, where efforts were made to draw more Chinese investments to the US. One such event was the Select USA Summit. Speaking at the Summit, US Commerce Secretary Wilbur Ross stated:

We welcome investment from any place as long as it’s investment that poses no challenges for national security.

US states and FDI

What was clearly visible at the Select USA Summit was the fact that a number of US states pitched for expanding economic ties with China, and drawing greater Foreign Direct Investment.

The state of North Carolina sought to attract investments in areas like IT, aviation, and biotech. The US headquarters of Lenovo are in the state of North Carolina. Trump’s trade wars have hit the state in a big way, and one of the sufferers has been soy bean farmers. As a result of a 25 percent imposition of tariffs, the price of a bushel of soy beans has dropped to $8, from $10 in 2018.

Other US states brought to the fore the impact of tariffs on their respective economies. According to a senior official from the state of Louisiana for instance, it has suffered immensely as a consequence of the imposition of tariffs. Agricultural commodities from Middle America to China are imported through export terminals in Louisiana. Don Pierson, the senior official from Louisiana, said that the agricultural economy of the state, as well as the logistics economy of the state, have taken a hard hit as a consequence of the trade wars. Pierson also spoke about the possibility of exporting LNG from Louisiana to China. Chinese companies in the state of Louisiana, which include Yuhuang Chemical Group (Shandong’s), have made major investments. Shangdong’s decided to invest $1.85 billion in a methanol production complex (this was one of the largest Chinese direct investments in US). Wanhua Chemical Group invested over $1 billion (1.2) in a chemical manufacturing complex in southeastern Louisiana.

A number of Chinese companies have also begun to realise that there is need to adopt a nuanced approach, and are still tapping certain US states for investment.

Another important event was the Select LA Summit. The Los Angeles Mayor Eric Garcetti, and Lenny Mendonca, chief economic adviser to the California governor, assured overseas investors of all possible support from the town of LA, as well as the state of California.

Impact of trade disputes and Washington’s stance vis-à-vis Huawei

US states and Chinese provinces have been at the forefront of improving economic ties between both countries. Both are likely to suffer as a consequence of not just the trade war between both countries, but also the US ban on Huawei. The tech company, according to a report published in 2016, contributes 7% of the GDP of the town of Shenzhen (Guangdong province). Affiliates of Huawei provide employment to an estimated 80,000 people, while a research facility in a nearby city of Dongguan, provides employment to well over 3,000.

Conclusion

In conclusion, it is important for all stakeholders, not just businesses from both countries, to play their role in resolving economic and technological disputes between China and the US. It is also important for Chinese provinces as well as US states to play a pro-active role in reducing tensions. Both governments, while realising the importance of federating units, have set up official dialogues and set up other mechanisms for sub-national exchanges. It is important that these platforms now contribute towards reducing the divergences between both countries. While all eyes are on the political leadership of both countries, it is important to realise that the stakeholders in the US-China relationship are not restricted to Beijing and Washington DC.

Normal Joe and the 2020 Election

Sorry if this is a little disjointed. Summer has finally arrived on the California central coast. So, I have been trying to recover my toxic masculinity for the beach, not smooth sailing!

Mr Biden declared that President Trump poses an “existential threat” to the nation. This is not what bothers me because it’s unlikely Mr Biden understands the word “existential.” His team put it up for him to read or he cribbed it mindlessly from someone else’ speech, the way he does.

I am beginning to get a bad feeling about the Biden presidency for another, subtle reason so, pay attention. It’s not so much the continuing gap in the polls between him and Mr Trump, although that too, but only in the second position of my worries. What’s most disturbing is the continuing gap in the polls between Mr Biden and all other Democrat candidates.

Ex-Vice-President Biden is like a caricature of Mr Nobody. In politics for fifty years, he has mostly demonstrated a talent for being re-elected. His name is associated with few important pieces of legislation and the ones that are remembered are currently causing him problems. One such is the Violent Crime Control and Law Enforcement Act, of 1994 which, critics from his party say, resulted in the needless incarceration of many black males. Of course, in his two terms as vice-president, he was vastly overshadowed by his boss, Barack Obama. The thought could cross your mind legitimately that he was selected for the post, in large part for his, this talent, a great capacity for being overshadowed.

I think I may be describing precisely the reason why he is thus far outpacing other Dem candidates. Briefly put: You can’t have everything. Mr Biden ‘s main quality is that he is – for a politician – NORMAL to the point of mediocrity. Repeating myself: In this context, mediocrity is another word for normal.

He is an older white man with a well known political track record (with little to see), one unlikely to generate surprises. His face and his voices are familiar, if nothing else because of his two terms as a vice-president. He is famous for his gaffes but that makes him perhaps a little endearing, like the dear old uncle who invariably drops cream cake on his tie at every family dinner. His main liability may well be his propensity to touch others, including children. But, hey, nobody is perfect and, one suspects, other male candidates – most of them or all of them – probably have much bigger skeletons in their closets, doesn’t every guy?

Just compare Mr Biden to the two current runners up – far behind him, Senator Bernie Sanders and Senator Elisabeth Warren. The first would, on the surface, also qualify as pretty normal. He looks like a handsome grandfather. He has been married to the same woman forever. He speaks well. He is abnormal mostly in a virtuous way: He did not get rich in office. But, but, most of the time, when he opens his mouth this terrible 1949 narrative comes out of it. (I chose that date because it precedes the death of Stalin and the torrent of revelations about the realities of Soviet socialism that followed it.) Mr Sanders has not learned a freaking thing in 70 years! That’s a lot, even for starry-eyed progressives. It’s a bit much even for millennials who feel existentially cheated (this word again) and thus have their own reasons to consider the absurd.

Or take Ms Warren. Actually, she had an honorable career as an academic. (I checked, little bitch that I am!) She expresses herself clearly. The bits and pieces of her extreme left-wing program make superficial sense, considered out of context, one-by-one. Tell the truth, I am a little frightened of Warren for this reason. However, I cannot believe that independents will forget or ignore the lamentable Pocahontas story. Either, she is a long distance liar who used an imagined ethnic identity to advance her career (and therefore, cheated real ethnic candidates, in the putrid calculus of racial advancement). Or, and this may actually be worse, she fooled herself for all of her adult life into believing that her archetypal WASP face was but a mask covering up strong Native American features. Her reactions on the occasion of the fiasco of her DNA analysis results make the latter explanation credible. She could have stopped publication and quickly changed the subject when it came out that her chances of having Native American genes were about the same as those of a recent immigrant from China. Instead, she dug in her heels. Ms Warren has spectacularly bad judgment. I mean that she is far from normal, that way.

So, I am telling you that Mr Biden’s advantage, perhaps his single advantage, may be that he appears normal, even impressively normal, Central Casting normal, I am tempted to say – but that would be cheap- abnormally normal. That would explain his advance against other Dem candidates in spite of the fact that he violates many tenets of current received wisdom about the Democratic Party: He is a man, an old man, white, heterosexual, (probably, he only sniffs females’ hair), not transgender, not even socialist.

Mr Biden’s normalcy may also explain the polls gap with Mr Trump in a projected one-on-one contest for the presidency. In fact, it’s difficult to think of anything else that explains both the gap between Mr Biden and his Dem rivals and the gap between himself and Mr Trump.

It’s possible that this shift in the electoral game has gone largely unperceived thus far because both left and right commentators are distracted. The pro-liberal media are entranced by the antics of the newest and of the oldest members of Congress. Surely, Bernie Sanders’ 1949 economic and social ideas are more riveting than Mr Biden’s normalcy. Certainly, the many surrealistic pronouncements by the best-looking female member of the House are more exciting than Mr Biden’s normalcy. And then, there is the continuing fascination with the left’s desire to hurt Mr Trump, somehow, sometimes, impeachment or not impeachment.

I, myself, may be typical of a mistake conservatives have been making systematically that would blind us to the importance of Biden’s normalcy. Let me explain. I am not a Trump cultist, not by a long shot. I think Mr Trump is rude, crude, unreliable in his words; I think he often speaks before he thinks, many of the things he asserts are just not true. I decided early in his administration that these kinds of features and mishaps would not bother me. I still think they are unimportant against the background of his successes that liberals don’t like, such as his two Supreme Court appointments, and next to his successes that even liberals ought to like, such as low unemployment and solid economic growth. And then, of course, there is just no way I will miss Mr Trump’s only realistic 2016 alternative, the thoroughly crooked Ms Hillary Clinton.

For the past two years, I have been on kind of automatic exercising my rationalist bias. I have been dismissing the obviously hypocritical mass media and its caste-based hatred of Mr Trump. I have treated lightly the howls of pain of the few liberals with whom I remain in contact. I have been seeing them first as expressing loser’s rage, an especially painful rage because the loss was unexpected. Second, the inability of the few liberals with whom I am still in contact to justify their howling on factual grounds also contributed to making me dismissive. Every time I asked one of them to give a single instance of Mr Trump acting illegally, or unconstitutionally, as they abundantly claimed he did, they failed lamentably. And, of course, I believe that immaturity is one of the sources of liberalism.

But, my approach may be too rational by half. When a liberal accuses Pres. Trump of being a would-be dictator, his words may not matter; he may just be expressing the depth of his indignation within the scope of a limited political vocabulary. He may be simply shouting out his disarray in the face of the abnormality of the current American political situation. His words may not mean what they are supposed to mean; they may simply mean, “I am disoriented and scared!”

So, Mr Trump’s main adversary, in 2020, may not be the uninformed and woolly socialism of the left of the Dem Party. It may not be the climate alarmism of practically all its candidates, which leaves the mass of the American public notably cool. (Yes, that’s on purpose!). It may not be the resonating but hard to pin down claim for greater equality, or “social justice.” In his 2020 campaign, Mr Trump may have to fight the lure of a return normalcy incarnated by Mr Biden. Frankly, the prospect makes me nervous.

If the coming race is all about restoring the republic to normalcy, Mr Trump’s road is going to be rocky. (Strangely, someone in his entourage seems to have such foreboding. The 6/15-16/19 Wall Street Journal describes a markedly conventional organization of the 2020 Trump presidential campaign designed to make the president appear more normal – my choice of word.)

In practical terms, in this context, the strategic questions will be as follows: Are there enough Dem voters who would not otherwise bother who will be enticed to vote by Mr Biden’s conventional looks and actions? Are there enough independents who will take the Trump policy achievements for granted, and who are rebuked by the Democratic Party’s new extremism but who will nevertheless vote Democrat because the Party’s candidate, the colorless, marginally live Joe Biden – seems normal?

And if you are one of those conservatives who airily dismiss polls because of the previous presidential campaign, think again; the pollsters called the popular vote just about right in 2016.

Jair Bolsonaro: the Devil?

Scott Sumner wrote recently on The Library of Economics and Liberty a piece in which he apparently buys into Reason’s understanding that Brazil’s president Jair Bolsonaro is “the most extreme and repellent face of a resurgent, evangelical-driven right-wing attempt to drag the country backwards by decades”. Reason, on its turn, is buying into The Intercept’s understanding of Bolsonaro.

There is little new on the piece: Bolsonaro is a racist, a misogynist, a homophobic, a fascist… All the accusations that mainstream media is used to throw at him, mentioning no clear examples or just inventing ones. And once again, it is my job to defend not Bolsonaro himself, but the truth.

Bolsonaro was born in 1955. He is in many ways a typical aging Brazilian man. Coming from a lower middle-class family, as a young man, he joined the army. He was very young but lived the years in which the military took over power to defend Brazil from the communists. Many people today might think that the communist threat didn’t call for that. Nevertheless, this is not what common people in the 1960s understood. They were afraid and begged the Army to defend the country. Most people were happy to give up democracy in the name of security. Bolsonaro was among them. Maybe they were very wrong, but one should try to empathize with them.

Because of the environment in which he grew, statism and protectionism are in Bolsonaro’s blood. Actually, that’s how we all grew up in Brazil. We expect that the government will solve the problems, and we are not used to asking where the money will come from. We also believe that the government has to protect the Brazilian workers and businesspeople against foreign competition. To become economically conservative in Brazil is crazily hard. You have to fight against a deeply established culture. Bolsonaro seems to be fighting against his best instincts that tell him that he should protect the Brazilian market and promote development.

I seriously doubt that Bolsonaro is corrupt. In any functional democracy, this should be a given, but sadly in Brazil, especially after the PT years, to have an honest president is a great relief. I’m certainly not saying that he is incorruptible. Also, Bolsonaro was not virtuous enough to give up many of the privileges he had over the years as a politician. Nevertheless, compared to much of the Brazilian political class, he stands as an honest guy.

In a sense, all this talk is pointless. Bolsonaro was elected. He is the president. He is profoundly against all that the PT government did. The PT government brought Brazil into its deepest economical, political and moral crisis. Bolsonaro and the people around him are trying to revert this. I’m certainly not saying that he shouldn’t be criticized. But he needs help. And Brazilians need help as well. Our real enemy is certainly not Bolsonaro.

Back in Brazil: bureaucracy

After two years away, I’m trying to put my life back on tracks in Brazil, and one of the main obstacles for doing so is the country’s crazy bureaucracy. Maybe this will come as no surprise for many, but Brazil is known for its big fat bureaucratic system, and basically, any rational analyst I’ve ever heard or read believes that this is one of the main obstacles for the country’s economic growth.

One of the problems I’m facing is getting the money from my FGTS. FGTS stands for “Fundo de Garantia do Tempo de Serviço”, a compulsory savings account that all Brazilian workers are forced to have. The moment you get a job, your employer is responsible for putting a percentage of your salary in the account. In case you are fired (or retire, or get cancer – seriously), you can get the money.

FGTS was created in 1966, at the beginning of the military regime that lasted from 1964 to 1985. Funny enough, people on the left, who demonize the Military governments, are today the main defensors of FGTS. Reality is, as you can probably tell, that this does little to help workers. FGTS has a very low interest rate, lower than the country’s inflation. That means that you actually lose money with it. Any other private investement would be better. Besides, it is clear that its reason to be is not to help workers. FGTS was created because bureaucrats realized that Brazilians had no culture of savings, therefore the government had to create one in order to have some money reserve to use. And using it government did. FGTS accounts have frequently been used by the government to try to boom the economy Keynesian style. Trying to get your FGTS money is crazily hard. Bureaucracy turns into a maze and can win you by fatigue. Perhaps I should just leave my money with the government.

The Bolsonaro government is trying to modernize the economy, and part of the process might involve putting an end to FGTS and other peculiarities created by Brazilian bureaucrats in the past. The left, however, complains that workers are losing rights. I can tell by personal experience that I would be losing my right to have a very poor savings account that I didn’t choose and that I have a very hard time to get access to. But try to explain this to millions of workers that are still hostages for labor unions and left-wing political parties.

Tariffs and Immigration

Pres. Trump announced yesterday (6/7/19), on returning from Europe, that the threatened tariffs against Mexican imports were suspended “indefinitely.” It looks like Mexico agrees to do several things to stop or slow immigration from Central America aiming at the United States.

Well, I am the kind of guy who, on learning that he has earned the Publishers’ Clearing House Giant Jackpot immediately worries about accountants, and about where to stash the dough. So, here it goes.

Mr Trump never did specify how much Mexico would have to do to keep the threat away durably. Two problems. First, if I were the Mexican government, I would worry about his moving the goalposts at any time.

Second, – and those who hate him won’t miss it – absent specific goals, Mr Trump put himself in a position to claim a (considerable) political victory no matter what happens next. To take an absurd example, if the number of migrants from Central America decreases, by 1% in July and August, he will be able to say, “ I told you so, my tariff pressures work.” As the French say, “ Why cut yourself the switches that will be used to whip you with?”

Part of the agreement reportedly, incredibly, includes a provision that those migrants who are waiting for their American formal court appearance will be allowed to so in Mexico, and be allowed to work there while they wait. This sounds amazingly unfair to Mexico. (I sure hope some significant money changed hands in the background on the account of his provision.) Mexican public opinion is not going to respond well to this feature if it understands it.

Another feature of the agreement is that Mexico will allow itself to be designated as a third and “safe” country. This has to do with ordinary international asylum and refugee agreements language which generally specify that an asylee or refugee may not chose his country of destination but must seek legal status in the first safe country he reaches. So, for Syrians, that would be Greece, or Turkey, rather than say, Germany, or Sweden. You know how well this provision worked out in Europe! Even more seriously, Mexico is not safe by any measure: The Mexican homicide rate is more than five times higher than that of the US – which is itself not low. (Wall Street Journal, 8-9 2019, p. A6). Imagine what it will be against an alien, vulnerable population.

As I write, Mexico is already deploying its National Guard on its southern border to impeach passage. This is a brand new force; it has no experience; expect accidents or worse. When this happens, it won’t play well with the Mexican public. The southern border of Mexico is short, only about 150 miles but still, the Mexican National Guard has only 6,000 members, total.

American conservative opinion remains badly confused about the facts of immigration in general. This, in spite of my own valiant efforts. ( See my “Legal Immigration Into the US” – in 37 short parts, both in Notes on Liberty and on my blog. Ask me for the blog’s name via jdelacroixliberty@gmail.com.) On Friday evening (6/7/19), in less than 30 minutes, I heard two different Fox News commentators refer to the migrants arriving in caravans from Central America and that are overwhelming our national processing capacity as “illegal immigrants.” That’s wrong. People who run after the Border Patrol to turn themselves in as a prelude to their claiming asylum are not illegal immigrants. There is nothing illegal about such acts, however you deplore them. And, in our constitutional tradition, nothing can be deemed retroactively as against the law. If we don’t like what the law currently produces, we must change the law. Period.

I used to hope for a wholesale, inclusive change in our immigration laws. I now think this is not going to happen in a bi-partisan manner because there are still many Dems who deny the obvious: We are currently facing an immigration crisis. If the plight of would-be immigrants held in overcrowded facilities or let loose in strange cities without resources, does not move their hearts, nothing will. I now think the administration should opportunistically seek piecemeal reform as may be facilitated by temporary situations. Big change will not happen until the GOP gains control of both houses of Congress, in addition to the Presidency. I believe that equivalent Dem control would not make immigration reform possible because there are too many liberal ideologues and too many Dem politicians who want open borders, for different reasons.

One more thing: Mainstream conservatives and some spoiled libertarians have been clamoring on the social media that tariffs are wrong, always wrong, wrong, no matter what. They point out rightly that tariffs are first and foremost taxes on the consumers of countries that impose them. I am myself completely persuaded of the merits of free trade as a means to maximize production. This does not prevent me from seeing that trade pressures, including the imposition of tariffs, can be used to extract advantages from other countries. In fact, I suspect such maneuvers may often be the best alternative to military pressure. In this case, and temporarily, I understand, Mr Trump’s tariff mano-a-mano with the tough leftist Mexican president, seems to have borne fruit. So, I would like the never-never–never tariffs people on my side to provide a rough estimate of how much this particular tariff action – against Mexico – may have cost American consumers, total.

Back in Brazil: more impressions

Another thing that calls my attention in Brazil (or rather, in Rio de Janeiro) are the crazy traffic jams. All day long, traffic moves painfully slowly. Really. There is no rush hour. Every hour is rush. The reason is not hard to understand: there are way too many buildings for too few streets and poor options in mass transportation.

Thinking about this, I came across this excellent text. It is in Portuguese, so for those who can’t read it, I’ll summarize. Basically, zoning laws in Rio de Janeiro through the 20th century were completely crazy, following a very nasty relationship between politicians and real state companies. A company wanted to build taller buildings and profit, the city hall would not oppose, especially when a luxurious apartment was waiting for the mayor. The result is that old neighborhoods like Tijuca and Botafogo simply have no space on the streets for so many cars.

But what is the problem with many tall buildings? That’s what New York is all about, and I simply love the Big Apple! Well, that’s true, but NY has something that Rio doesn’t: a great mass transit system. Rio has four subway lines. Or three. Wait, maybe it’s just one. Here is the thing: on paper, Rio has four subway lines, which already makes no sense, since it only has lines 1, 2 and 4. Line 3 was planned but never built. Line 4 is just an extension of line 1, and line 2 trains enter line 1 (!). Although the system was privatized in the 1990s, it is very clear that it maintains a very suspicious connection with the state government. Sergio Cabral, Rio’s former governor, and presently in jail, was married to a lawyer who defended the Metro company. It is also clear that bus companies subsidize politicians who maintain their interests. In sum, Cariocas are hostages to a terrible public transport system that favors a criminous relationship between big companies and politicians.

Rio ends up representing very well a problem we see all over Brazil: people believe this is capitalism. Because of that, they vote for socialist parties. It should be painfully obvious from the examples of USSR, Cuba, Venezuela, Nicaragua, North Korea, China, Vietnam, Eastern Europe, and so many others that socialism simply doesn’t work. But here is the thing: people in Rio (and actually in Brazil and Latin America in general) suffered and suffer so much under crony capitalists that they can’t help but thinking that socialism might be the answer.

Hear, World! Socialism failed, just like Mises predicted. But as long as people suffer under crony capitalists, it will still be appealing, be it in a poor neighborhood or a college campus in the US, be it in a poor country in Latin America. The job is not done. Freedom isn’t free. We still have a long way to go freeing people from evil.

Back in Brazil: first impressions

After almost two years living in the US, I’m back in Brazil, more precisely in Rio de Janeiro, for a short visit. When I left Brazil two years ago, I was hoping that Bolsonaro would be elect president and that with that things would start to change for the better. I still have hope, but change is slower than I would wish.

Things in Brazil are crazily expensive. One liter of milk is almost 4 reais. One liter of gasoline is 5 reais. Considering that a poorly skilled worker makes less than 2 thousand reais, imagine how much it costs to live in Rio de Janeiro. If you live in the US, just remember how much you pay for a gallon of milk or gasoline. And also how much a poor, very simple worker makes in the US.

But thankfully Brazil has universal healthcare! Only that hospitals have always been terrible here. Seems to me that Brazilian TV has a video that they just play in a loop, showing how terrible it is. Sadly, mainstream media continues to ask the government for better health (and better education, and better services in general) instead of admitting that government-run services will simply never be good.

Brazilians (or at least people in Rio) are also very aggressive. I believe I understand why. Everyone here has been deeply hurt.  “It´s the law of the jungle”. Or “grab what you can and let the devil take the hindmost”. Injustice has hurt these people pretty deeply.

So, yeah. Keeping desiring Socialism! Keep supporting the likes of Bernie Sanders and Alexandria Ocasio-Cortez. Nothing has helped poor people over the years more than free markets. Few things have hurt them more than socialism. Coming back to Brazil, I can tell.