Vacation links (Friday)

  1. Excellent piece on economic history and Indonesia
  2. The geographical dilemma facing South Asia
  3. The heroic Gwangju Uprising of 1980
  4. A blinkered explanation for the rise of Jair Bolsonaro

What I learned in my bachelor’s degree

I took my bachelor’s degree in History between 2001 and 2005. All the people I asked told me that the course I took was the best in the country. I suppose they were right, but today I understand that they were predominantly talking about the graduate program at the same school. A department with a good master’s and doctoral degree does not necessarily translate into a good undergraduate degree, in the same way that good researchers and writers are not necessarily good teachers. Most of my professors were very bad teachers. I hope to be saying this without bitterness or arrogance, just realizing that although they were good academics, they were mostly not good at imparting knowledge.

Perhaps one of my professors’ difficulties in transmitting knowledge was precisely the constant questioning about the validity of transmitting knowledge. Brazilian pedagogy is strongly influenced by a form of social-constructivism created by educator Paulo Freire. Freire strongly insisted that teachers could not be transmitters of knowledge, but that students created knowledge on their own, and that teachers were, if at all, facilitators of this process. At least that’s what I understood or is what I remember from my pedagogy classes. Paulo Freire’s pedagogy is admittedly a translation of Marxism into the teaching field: students are the oppressed class, teachers are oppressors. Freire wanted pedagogy to reflect a classless society. The result, in my view, was that teachers were terrified of being seen as “the owners of the truth”.

My bachelor’s degree had the bold goal of training teachers and researchers at the same time. In my view, this created a difficulty: students needed to learn to cook and be food critics at the same time. It was not an easy task for people of 18, 20 years of age. Most classes ended up being quite weak. Another problem is that my post-Marxist professors wanted us to have a critical attitude: we needed to be critical of everything that was understood as “traditional”. This ended up creating distrust in the students’ minds: if everything is to be criticized, what should I believe? Of course, contradictorily what professors said should not be criticized, especially the proposition that everything should be criticized. In general, the program tended to generate people of 18, 20 years boisterous or confused. Or both.

Another experience of my bachelor’s degree was the encounter with party politics. In my high school, I had little contact with highly politicized people or student unions. The same cannot be said of my undergraduate studies! I met many people who were already involved to some degree with political parties, always on the left. Some people say that Christians are the main reason churches are empty. I can say something similar about my undergraduate colleagues. It is largely thanks to them that I became conservative. The hypocrisy, the aggressiveness, the arrogance of many of them made me suspect that there was something very wrong with the left. It took a few years, but eventually, I discovered classic liberal or libertarian authors and found my intellectual home.

But there were positive things about my undergraduate studies as well. Undergraduate was my first great opportunity to leave home a little more. I met some people with whom I am still friends today. And I had some good classes too. Some professors were more conservative, and largely ignored the department’s directives. Their classes were more traditional, more expository, more dedicated to informing us about things that happened in history, without much questioning. I remember a quote from my professor of Contemporary History I (roughly equivalent to 19th century): “when writing your paper, don’t say “I think … ”. You don’t think anything. When you are in the master’s or doctorate, you will think something. Today, simply write “the so-and-so author says …”. Be able to understand what the authors are talking about. That is enough for you today ”. There were also professors who were able to introduce a more critical perspective but in a less radical way.

Perhaps my biggest disappointment with undergraduate is that I almost didn’t get to teach History. The education system in Brazil is essentially socialist. The government assumes that everyone has the right to free, good quality education. And you know: when the government says you have a right to something, you’re not gonna get it, it will be expensive and of poor quality. The life of a teacher in Brazil is quite harsh. I have several friends in the teaching profession, and I am very sorry for them. Maybe I should have listened to my mom and study engineering.

But I don’t want to end it bitterly! I studied History because I really wanted to be a teacher. I still think that being a teacher is a beautiful vocation. Unfortunately, in Brazil, this vocation ends up being spoiled by the undue state intervention. I also studied History simply because I liked History, and I still do. If I had the mind I have today, possibly I would have studied something else. But I didn’t, and I am grateful for the way my life happened.

What I learned in the Master’s

In my master’s degree, I studied international relations. As far as I can judge, the program was very good. Excellent even. It was a very good two years, in which I was challenged like never before. The master’s degree was very difficult for me. I was very curious about international affairs, but I knew almost nothing about international relations theory. The professors assumed that students were at least familiar with the content. I was not. So, I went through the experience of learning to cook and learning to be a culinary critic at the same time. I had to chase a lot. But it was good. The master’s taught me like no previous experience to study on my own.

Looking back, I understand that the program was strongly influenced by a light form of postmodernism. That was very difficult for me. There was a strong rejection of more traditional theories of international relations, such as realism and liberalism. It was all very new to me, but I knew that being a classic realist was not an option well regarded by the professors. I ended up finding a kind of lifeboat in constructivism. I didn’t want to be ashamed of being a realist, but my intuition told me that there was something wrong with postmodernism. It was only after the master’s degree, teaching the theory of international relations and studying several other things, that I understood that postmodernism is really crazy, something deeply twisted.

Constructivism is largely weird also. The most sensible thing I read in international relations was John Mearsheimer’s offensive realism. Stephen Walt is an author who also made sense to me in my post-master’s life. In short, I admire my master’s program for its academic excellence, but I find the theories espoused by several of the professors completely flawed.

It was very difficult for me to write my dissertation. I did not have a clear theoretical basis, just the instinct that I did not want to follow a postmodern line and the certainty that a more traditional theory would not be well accepted. I wrote the dissertation without having a very solid theoretical basis. But my research, modesty aside, was still very well done. I researched the arrival of the first Protestant missionaries to Brazil in the 19th century.

It was a topic of personal interest. I was a recently converted Protestant, and I wanted to know more about my history. As they say in Brazil, I joined hunger with the desire to eat. My question, which I was not able to ask so clearly at the time, was whether the presence of missionaries in Brazil, the majority coming from the USA, had affected Brazil-United States relations in any way. Even today, I find it very difficult to analyze causality in such cases, as someone would do in the hard sciences, but I believe that with the information I gathered I can defend that yes, American Protestant missionaries affected Brazil-US relations in many ways. Brazil and the USA were predominantly disinterested in each other in the early 19th century.

In the late 19th and early 20th centuries, this situation changed dramatically, especially on the part of Brazil. The USA started to play a central role in Brazilian foreign policy. It does not seem to me to be the case that the missionaries caused this change, but I believe that their presence in Brazil cooperated, along with other factors, to make this happen. Would Brazil change its foreign policy at the end of the 19th century in one way or another? This is a type of question that, honestly, I’m not interested in answering. But I believe it is clear that the missionaries helped the two countries to become a little more aware of each other.

I faced some opposition from colleagues for choosing this topic. One of the things I heard was that, being a Protestant, I would not have the necessary distance to do a good research. I also heard that missionaries would be little more than tourists, and that they would, therefore, have no chance of affecting relations between the two countries. These were harsh criticisms, which still make me sad when I remember them. I see in these criticisms a certain prejudice against evangelicals that is still present in Brazil, inside and outside academia. Ironically, I did not find the same thing on the part of the professors. On the contrary! Every one of them was always very supportive of my research, and in fact, they found the topic interesting and pertinent.

I would very much like to be able to return to the topic of my research with the head I have today, but I don’t have time for that. To some extent, I would also like to go back to those classes knowing the things I know today. But I also believe that I would not have that much patience. I have a better notion of what I consider epistemologically valid or not. I suppose the master’s degree would be more difficult to take today. Anyway, the master’s degree gave me my first job as a professor: I started teaching international relations when I hadn’t even defended the dissertation, and I did it for eight years. It was a very good eight years. Although I am away from this area, I still like what I learned, and I feel benefited by the time I studied and taught international relations.

What I learned at the doctorate

The 19th century Brazilian political system was dominated by two parties: Conservatives and Liberals. Although these parties were formally established only in the late 1830s or early 1840s, part of my thesis involves understanding that these parties existed, albeit in an embryonic form, since independence in 1822.

What I noticed is that since independence, conservatives have had a more realistic view of international relations. For them, securing the territory (and the government’s dominance over it) was crucial. Liberals had a more, well, liberal view of international relations. Although they did not deny the traditional formulation of the state (territory, population, government, recognition by other nations), they were more optimistic about the possibility of cooperation with other countries.

The view of conservatives and liberals about international relations matched their ideas about domestic politics very well: conservatives advocated a more centralized and stronger government, with greater control over the territory. One of their great fears was the possibility of Brazil’s fragmentation into several small countries, as happened with Spanish America. Their defense of the monarchy was linked to this: a monarch with greater powers would guarantee the maintenance of the territory. Liberals advocated a more decentralized government, with greater freedom for individuals, and also greater freedom for provinces, which would not be controlled so directly by the central government. The fear of fragmentation of the territory was lesser, and some liberals understood that if individual provinces decided to leave the union, well, that was their right.

These views on international and domestic politics also matched the way liberals and conservatives viewed the United States. Early in the country’s history, conservatives tended to see the United States as a young, unimportant republic. The proclamation of the Monroe Doctrine changed this attitude a little, but it remained a fact that conservatives preferred to direct Brazilian foreign policy towards Europe. Liberals, for their part, saw an example to be followed in the USA, with their conscious departure from the European way of doing politics, especially their federalism. Throughout the 19th century, as the United States grew in power, these attitudes changed, but not by betraying the basic understanding that the two parties had about international relations: conservatives feared possible US imperialism, especially in relation to the Amazon. Liberals were less jealous about the national territory, and in any case, they did not see the United States as a threat.

The great irony I found in my thesis is that in the late 19th and early 20th centuries, liberal and conservative ideas about the United States converged. The monarchy was overthrown and the republic proclaimed in Brazil in 1889. The liberal and conservative parties were formally extinct. Part of my thesis involves saying, however, that despite this formal extinction, liberal and conservative attitudes continued to exist in both domestic and international politics. In domestic politics, Republicans represented, at least in part, a radicalization of liberal ideas. Foreign policy was initially marked by this radicalization, but that soon changed. After a very troubled 1890s, the Baron of Rio Branco took the reins of Brazilian foreign policy in 1902.
Rio Branco was a frankly conservative individual. Early in life he chose not to get involved in domestic politics, partly because he did not want to be in the shadow of his father, Viscount of Rio Branco. He followed the diplomatic career. However, as I have already explained, the views of conservatives in domestic politics found a clear counterpart in foreign policy, marked above all by the defense of the territory. And this was the foreign policy of the Baron of Rio Branco.

The thing is that Rio Branco chose a liberal, Joaquim Nabuco, to be Brazil’s ambassador to Washington. Both Rio Branco and Nabuco understood that Brazilian foreign policy should focus on the USA, but for different reasons. On the international stage of the 1900s, Rio Branco believed that an alliance with the USA, albeit informal, was the best way to guarantee Brazil’s security against European imperialism. Nabuco did not ignore this aspect of international relations, but he also believed in a higher ideal: that the approach to the USA could represent a counterpoint to the bellicose European international relations, leading to the progress of civilization. So the irony was this: both Rio Branco, the conservative, and Nabuco, the liberal, wanted to get closer to the USA, but for very different reasons.

Studying to write my thesis was a very pleasant process. I liked the characters I met, I liked the stories and I liked the theme I chose. During the doctorate I was intellectually more mature, and I managed to have a high degree of independence in the way I conducted my research. In other words, I did not allow myself to be led by theoretical perspectives with which I did not agree. And I also think that what I learned has real practical implications. I am glad that it was not my responsibility to decide on Brazilian foreign policy in the 19th century, but I understand that conservatives were often being fearful. I know that they were often being hypocrites. Of course, hindsight is always beneficial, but I believe that liberals were generally right.

There is a catch to this story: Brazil was the last country in the West to abolish slavery, in 1888. Until then, an unimaginable number of slaves crossed the Atlantic to work mainly on coffee and sugar cane fields. This is a dimension of the history of Brazil to which I regrettably gave little importance at the time I was writing. Today I see things differently: the country of slavery yesterday, not for nothing, is the country of socialism today. And I think it’s important to think about how such a strong dependence on slavery probably affected the way domestic and international politics were made.

 

Brazil’s economy after the pandemic

I wrote an article on the path to economic recovery in Brazil after the pandemic. The article was published by Instituto Monte Castelo, a Brasilia-based think tank, and it is in Portuguese. Here is a summary of the key points.

Brazil’s economy is overwhelmingly interventionist, as shown by its progress (or lack thereof) in data compiled by the World Bank in its Doing Business studies, or Heritage’s Foundation Index of Economic Freedom, or the World Economic Forum’s Global Competitiveness Report. As predicted by theories of economic interventionism (more recently, Robert Higgs and Sanford Ikeda; but, classically, Ludwig von Mises), a time of crisis invites more government intervention or, remarkably at certain historical junctures, disintervention.

From a free market perspective, what can be done?

Brazil’s situation is, to a certain extent, a reflection of the global scenario. A global crisis was bound to happen, given the unrealistic inflation of asset prices in global financial markets, reflecting the artificial propping up of the major economies around the world by injections of money and credit, as well as increased public spending after 2009. COVID-19 triggered it, but it was the tip of the iceberg. Brazil suffered from capital outflows and its currency devalued sharply against the US dollar.

In terms of how the external scenario reflects on Brazil, the only thing that can be done is decrease the level of risk in Brazil’s economy, or maintain interest rates on a level that reflects the amount of risk in the economy (given that Brazil’s Central Bank has been cutting rates throughout the year). The fact that the President is fighting with his cabinet and with the other branches of the government also reflects poorly in terms of political risk.

However, there is a lot that can be done in terms of the domestic scenario. The economic crisis resulting from the pandemic also reflects, in part, a change in consumer preferences and in how things will have to be done safely to avoid contamination. This means that some businesses will not thrive as much (restaurants, for example) and that other industries will incur in much higher costs to operate more safely. This disequilibrium would have happened regardless of government-mandated restrictions, and alert entrepreneurs will spot a chance to obtain gain by creating value for their consumers and clients.

However, it’s much harder to shut down inefficient companies, fire people, and open new ones, and hire people, in a heavily interventionist economy such as Brazil’s.

Shutdowns and other government imposed restrictions, especially on the local level, are making things worse. Brazil’s case is one of a milder shutdown. The government is offering a small compensation package for the trouble, but not much compared to the “stimulus” packages in Europe and the US. This probably reflects a more sober approach by Brazil’s Central Bank. However, on the one hand small businesses struggle to get access to credit due to the red tape, so this favors large companies and will concentrate the market in the long run. There’s also an idea of propping up airline companies and other inefficient businesses. This, in my view, would be a mistake. But lobbyists will line up to get their share of the cake.

The path to economic recovery in Brazil will necessarily have to involve local and federal deregulation, cutting lots of red tape, and major tax reforms. Labor laws have been made more flexible a few years ago, and the current administration managed to pass a massive pension reform that will reconfigure some of the public debt. However, this is not enough. Deeper reforms to cut public spending on a more permanent basis will have to be proposed, and the federal government will have to work harder to signal institutional and political stability and predictability.

The challenge is that the current administration can’t get reelected in 2022 with very little to show in terms of the economy, and the effects of the reforms proposed above will only become clearer in the long term. The temptation is to do just what the US seems to be doing – anti-trade nationalism to punish a foreign scapegoat, or the abstract scapegoat of ‘globalism’, appease some of the cronies with monetary and fiscal populism, red herrings making the population and the media focus on culture wars, etc. But this temptation is to be expected according to the economic theory of interventionism. Whether it will be overcome, only time can tell.

On growing up in Brazil, political liberty, and religion

Steve Bishop recently interviewed me for his blog and we talked about my personal background, my Christian faith and my interest in Reformational philosophy, a tradition of thought of which Abraham Kuyper was an early proponent and Herman Dooyeweerd, the main exponent.

Here is a personal part of the interview that might be of interest to NOL readers. I answer a question about what influenced my intellectual development:

Another influence I should mention came from people and events that taught me to mistrust the hubris of political authoritarianism. My Italian granddad was a child during World War II and his family never joined the Fascist party. As a result, they had much less access to food and clothes and suffered a lot during the war. This is part of the reason why he later decided to try something new in Brazil. I grew up hearing his stories about the horrors of war. My other grandfather was older and he had been drafted by the Brazilian Army to join the allied forces and fight the axis powers in Italy. But, before shipping to Europe, in the Army base, he decided he shouldn’t go fight the war, so he had to hide for a few years before amnesty was granted for defectors. When I was born, Brazil was still under the rule of a military junta, but later transitioned to a convoluted period of democratic transition. High inflation was destroying people’s livelihoods. I remember running in front of the “price man” at the supermarket to get products for the previous day’s price before the new tags were placed in them. My father got his salary and would have to immediately spend most of it by stocking up groceries for the entire month. This was very early in my childhood, until age nine or so, but I still have vivid memories of the national currency changing name every six months or so. By college time, I was already immune to the idea that politicians are more enlightened than the rest of us.
Then, when I read books such as The Road to Serfdom or, say, Orwell’s 1984, they helped me conceptualize what I had already noticed intuitively. I had already grasped Lord Acton’s maxim that “absolute power corrupts absolutely”. If you have, let’s say, an Augustinian view of the potential damage we can cause to fellow human beings if unhampered by checks and balances, then you can easily identify some of the naivete about human nature both right and left on the political spectrum, and that can lead you to the normative point that civil government should be limited in scope.
Further on, I talk about current projects:
In 2018 I delivered the Calihan Lecture at the Acton Institute and applied the notion of sphere sovereignty to interpret the crisis we are facing in the public square. This lecture has recently been published in the Journal of Markets & Morality. Last year I finished a project on the classical liberal background of the anti-revolutionary movement. An article summarising the main findings will come out in the Journal of Church and State in 2021. I didn’t want it to be too controversial and deliberately toned down the argument after the first peer review, but the main point is that Groen van Prinsterer and Kuyper fall under the category of “anti-rationalist liberals”, together, of course, with figures such as Lord Acton, Edmund Burke, Alexis de Tocqueville, and others who were, together with the anti-revolutionaries, very critical of the “rationalist liberalism” of, say J.S. Mill or the French liberals. As part of this project, I wrote an epilogue to the Portuguese translation of Kuyper’s speech on the social question, a book chapter for a South African publisher on Christian ethics and entrepreneurship in an interventionist economy.

This, of course, alludes to F.A. Hayek’s distinction between two kinds of liberal tradition, one of which he rejected (rationalist liberalism) in order to embrace the other (anti-rationalist liberalism).

“Medicare For All” will never work: a Brazilian view

Even though I don’t follow the news, it’s somewhat impossible not to know that Bernie Sanders is making a lot of buzz as the possible Democrat candidate for the coming presidential elections. I know: he presents himself as a democratic socialist; he says that some European countries are good examples for the US. I believe that as a Brazilian I have something to say about that.

Bernie Sanders often compares the US with countries like Denmark or Sweeden. I believe there is a fundamental problem with that: the US is a gigantic country with a gigantic population. And a very diverse population at that! Nordic countries are tiny, with a tiny and homogenous population. How about comparing the US and Brazil? The two countries have about the same size and the population is not too different. Besides, Brazil is as culturally diverse as the US. Maybe more!

So here are some things about Brazil that I think people should know. Brazil is by definition a social democracy. That is not written anywhere, but one has only to read our constitution to be aware of that. Brazil’s constitution is very young: it was promulgated in 1988. As so, it reflects more recent political ideas. For example, it basically puts healthcare as a human right that the government has to provide for the population. So, Brazil has (in theory) a free universal healthcare system.

How is healthcare in Brazil in reality? Horrible. Inhumane. Media news are basically the same every week: long waiting lines for the most basic treatments. People dying without care. Few doctors. Overprice. Medication and equipment rooting without use. I don’t think that people in Brazil are different from people in the US. We have the same chromosomes. The difference is in how we deal with the issue. Brazil decided that healthcare is a right and that it should be provided by the government. The result is that we don’t have healthcare.

I believe I know why things are the way they are in Brazil: healthcare is a need. No doubt about that! But there is something really bad when a need is turned into a right. A right means that you have to get it, no matter what. But, really? No matter what? Second, there is something very deceiving when one talks about “free” healthcare. Really? Free?! Doctors have to get paid. Medicine costs money. One can’t possibly be serious when they say “free healthcare”. Finally, I suspect that the Austrian School of economics has something very important to say about the government running the healthcare system. More than anyone else, Friedrich Hayek pointed to how free prices are important for the economy. In a truly free economy, supply and demand interact with prices: high prices mean low supply; low prices mean high supply. This simple mechanism functions as a compass for everyone. However, when the government interferes, the result is inefficiency.  Too much medicine is bought and just rots. Or too little, and people die.

I’m not sure how many Bernie supporters read Notes on Liberty. But I really wish some of them would check what happens in Brazil. We tried to have a free universal healthcare system. We tried to have free college. We tried all these things. It didn’t work. I believe that the Austrian School can explain why. I know, it’s a bummer. There is nothing nice about people dying for lack of treatment. However, if you agree with me that this is a problem, I believe I’m in the right position to say that socialism – democratic or not – is not the solution.

That day when the communists tried to seize power in Brazil

On March 31, 1964, the military seized power in Brazil. Between 1964 and 1985, five generals assumed the presidency of the country. The period is generally called the Military Dictatorship. Although it ended more than 30 years ago, this period is still influential in Brazil’s political environment. A part of the Brazilian right still praises the military regime as a golden period in Brazilian history. A part of the left still condemns the regime as the darkest period in our history. Jair Messias Bolsonaro, the current president of the republic, is an admirer of the military regime and considers that not only was this necessary but also beneficial for the country. Dilma Rousseff, the former president impeached in 2016, was an urban guerrilla during the military regime and as far as I know, she has never publicly regretted this episode of her biography. Hardly a week goes by without the mainstream media and left-wing observers warning that Bolsonaro intends to strike a blow and reinstitute the dictatorship. Although the military regime was undoubtedly striking in the Brazilian reality, I would like to remind you today that Brazilian history did not begin in 1964.

1935. Brazil is governed by President Getúlio Vargas. Vargas came to power in 1930 through a coup. Defeated candidate for the presidency that year, he did not accept the result of the elections and with the support of the army, he took the power. Vargas was provisional president until 1934 when he was indirectly elected by Congress to remain in office. Vargas is pressured on the one hand by Integralistas, a group with fascist characteristics, and on the other by the Communist Party of Brazil. Faced with this scenario, with support from the USSR, the communists led by Luiz Carlos Prestes decided to take power by force.

The attempted coup took place between November 23 and 27, 1935. Low-ranking leftist militaries revolted in barracks in several cities in the country, including the capital Rio de Janeiro. The military who participated in the coup attempt believed that the working class would support them. The Communist International, in particular, saw Brazil as a “semi-colonial” society, in which a revolt against the government would be enough to lead the population to a spontaneous upheaval. That’s not what happened. The coup d’état had no expressive support from the population and the revolutionaries were soon defeated by legalistic forces.

The consequences of the coup attempt were dire. Luiz Carlos Prestes could not accept that his movement had simply been poorly organized and that the population did not support communism. There had to be a culprit. Prestes decided that it was the fault of Elza Fernandes, code-named Elvira Cupello Colonio, then about 16 years old. Elvira joined the group of communists of the 1930s under the influence of her boyfriend, Antonio Maciel Bonfim, code-named Miranda, general secretary of the Brazilian Communist Party. Prestes suspected that she was a police informant and decided that she should be killed. Elvira was murdered by strangulation on March 2, 1936.

In response to the coup attempt, Vargas hardened his regime, effectively becoming a dictator in 1937. The entire period from 1930 to 1964 would be deeply influenced by him.

After 1935, the Brazilian army became progressively more anti-communist, culminating in the 1964 coup.

There is no doubt that the leaders of the movement were paid (and very well paid) by the Comintern. There is no doubt that they were aided by foreign spies, mostly Europeans.

I don’t want to fall into the Tu quoque fallacy here, but my experience is that Brazilian leftists hardly remember the country’s history before 1964. Many criticize the anti-democratic character of the regime that was established in the country that year. Many denounce that the 1964 coup was carried out with US support. But I don’t remember many leftists making similar criticisms to the 1935 coup attempt.

I don’t want to be unfair. I have friends who identify themselves as leftists and who value democracy. But I must say: socialism can start democratic, but it inevitably leads to dictatorship. This is the only way to have their plans realized. People don’t seem to have learned that in Brazil. Or in other parts of the world.

Brazil, the country of Carnival (?)

Maybe for most English speakers it isn’t even known, but we are in the Carnival week. Carnival is a festive season that occurs before the liturgical season of Lent. The main events typically occur during February or early March. It typically involves public celebrations, including events such as parades, public street parties and other entertainments. I’m unashamedly taking some elements from Wikipedia here to try to explain it. It is basically equivalent to Mardi Gras. Carnival (or Carnaval, as we say it in Portuguese) is a big thing in Brazil. Or maybe not. That’s what this post is about.

Carnival is a Christian feast, at least in its origin. It occurs right before lent. Lent is the forty days that antecede the Passover. The idea was that people would fast (at least to some degree) during the forty days of lent. Therefore, Carnival was the last opportunity for forty days to indulge in some pleasures of the flesh. Carnival literally means “remove meat”, from the Late Latin expression carne levare. “Farewell to meat” is another possible translation. However, carne is not solely meat in Latin; it also refers to the flesh, especially in the Christian association between sin and flesh. Carnaval, therefore, is the feast of the flesh – taken literally or not. At least in Brazil, to my knowledge, the relationship between Carnival, Lent and Passover is little known. I believe that most people just take it to be a major party that happens sometime between February and March.

Brazil is popularly known as the country of Carnival, Samba and Soccer. Of these three, I kind of like the last one. Not so much the first two. To my knowledge, Carnival has always been very popular in Rio de Janeiro, at least since the early 19th century. At that time, it was known as Entrudo, a celebration in which mostly people throw water on one another, like in a water balloon fight. However, there were some improvements: people started throwing some liquids other than water if you know what I mean and that even at strangers. The party was also an opportunity for slaves to poke on their masters. Carnaval eventually became associated with the slaves’ African culture, and I suppose that’s how the Christian origins were somewhat lost. Today, Carnaval in Rio is strongly associated with Samba music.

I haven’t done a very scientific research for this, but to my knowledge, most people in Rio actually don’t like Carnaval. Carnaval is a street party, with all that comes with it: people leave tons of trash behind; people get drunk, and often violent; the music can get really loud and sometimes going on for hours, even into the night. Given the specific nature of the festival, there are people having sex on the street and other things happening as well. It is hard to say this without sounding moralistic, but the thing is that Carnaval ends up being the most anti-libertarian thing one can imagine. If “don’t do onto others what you don’t want to be done onto you” is the golden rule we’re trying to put into practice, Carnaval is the undoing of this.

In the late 19th century, some authorities already realized that the festival was getting out of control and tried to organize it somehow, mostly to no avail. But things really got out of control in the early 20th century. Coming out of the monarchy, Brazilian intellectuals were dedicated to the task of identifying the Brazilian identity. Sérgio Buarque de Holanda made a huge contribution to this with is Roots of Brazil (Raízes do Brasil), in which he said that Brazilians had a hard time understanding and applying the impersonal relationships necessary for a modern capitalistic society. Another major contribution in this conversation was done in 1933 by anthropologist/sociologist Gilberto Freyre in his book Casa-Grande e Senzala (English: The Masters and the Slaves). In this book, Freyre argued that the Brazilian national identity was the result of miscegenation (both biological and cultural) between masters and slaves.

On the one hand, I want to say that Freyre’s argument was revolutionary because he was saying that Brazilians were not an “inferior race” because of race-mixing. Just the opposite: Brazilian culture was permeated by highly positive elements exactly because of miscegenation. Consider that Freyre was saying that in the 1930s, when race-mixing was still a major taboo in the US, not to mention Nazi Germany. But on the other hand, I believe that Freyre contributed to a movement that gave up trying to “civilize” Brazil.

The topic of civilization is always a polemic one because it implies that some cultures are superior to others. I don’t want to go that way. But I also don’t want to be a cultural relativistic. Some cultures are superior to others in some aspects. There is nothing culturally superior in leaving tons of trash in the streets after a street party. There is nothing culturally superior in imposing your music taste on others. There is nothing superior in imposing your take on sexuality on others.

In the late 19th century, some authorities were trying to organize Carnaval in Rio de Janeiro because things were getting out of control. In the early 20th century, most authorities gave up that enterprise because they decided that Rio de Janeiro (and Brazil) is that “mess”. Instead of trying to correct the bad aspects of Carnaval, they decided to celebrate it as the very essence of Brazilian culture. Eventually, into the 20th century, Carnaval became a great example of panem et circenses policy.

I understand that in the early 21st century more and more people in Brazil are getting sick and tired of Carnaval, and that has some connections with politics. Typically (though definitely not always) people on the left want to celebrate Carnaval. People on the right typically (though definitely not always) don’t want to. Some people on the left are already saying that Bolsonaro’s government represents the taking over of government by Christian fundamentalists. I doubt. They may be right at a very low degree. But for the most part, what is happening is that Brazil is too diverse for a single project of nation to work for everybody. Ironically Gilberto Freyre was right: we are the result of this mixture, and this is not a bad thing. People only need to learn to respect the opinions, tastes and preferences of the other elements in this mix.

Edge of Democracy in Brazil?

The past few days Brazilian internet was packed with commentaries about The Edge of Democracy (Portuguese: Democracia em Vertigem), a 2019 Brazilian documentary film directed by Petra Costa that was nominated for Best Documentary Feature at the 92nd Academy Awards (and lost). To be honest, I didn’t watch this movie and I’m not planning to. My life is already quite busy as it is. However, judging by the trailer and by what people were saying, “The film follows the political past of the filmmaker in a personal and intimate way, in context with the first term of President Lula until the events leading to the impeachment of Dilma Rousseff, analyzing the rise and fall of both presidents and the consequent sociopolitical crisis that swept the country. The arrest of Lula paved the way for the rise of Jair Bolsonaro and his eventual presidency” (from Wikipedia). Vox says this: “Filmmaker Petra Costa grew up in a politically involved family in Brazil, and that’s her starting point for The Edge of Democracy, in which she traces recent developments in Brazilian politics and shows how the country moved so quickly from a fledgling democracy toward far-right authoritarianism”. So, it seems to me that the movie is about how Brazil was becoming a vibrant democracy under the rule of the Workers’ Party and now it’s becoming a far-right autocracy. Judging by that, these are some thoughts on how I see democracy in recent and past Brazilian history.

Brazil was a Portuguese colony, but this was different from America being an English colony. There were not thirteen colonies in Brazil. Portugal’s oversight of Brazil was stronger than England’s over America. There was basically no space for local rule in Brazil. Therefore, Brazil came from its colonial days with basically no self-government experience.

Brazil became independent from Portugal in 1822. But again, this was different from America’s independence. In 1808 the Portuguese royal family came to Brazil, running away from Napoleon. Brazil became a United Kingdom with Portugal in 1815. Dom João VI, the Portuguese king, gave in to the court’s pressure and went back to Portugal in the early 1820s. However, he left his son Dom Pedro I as prince regent in Brazil. And at this Pedro declared Brazil’s independence in 1822.

Dom Pedro I was crowned as Emperor of Brazil and ruled until 1831. Suffering multiple pressures, he went back to Portugal like his father before him. From 1831 to 1840 Brazil was ruled by several regents. In 1840 Dom Pedro I’s son, Dom Pedro II, became emperor. He ruled until 1889, when he was deposed by a military coup.

Brazil has been a republic ever since, but not like America. We didn’t simply have presidential elections every four years. The first two Brazilian presidents were virtually military dictators. Civilians came to power in 1894 and ruled until 1930, but these were not exactly democratic times. Mostly the country was ruled by coffee oligarchs.

The last of these coffee planter presidents ruled until 1930. Then Getúlio Vargas came to power in a coup. He ruled until 1945. Vargas was deposed but continued to be a major political player. So much so, that he came to the presidency in the 1950s. He committed suicide in 1954, while still in office. Basically, the country was still under Vargas’ shadow from 1945 to 1964. And that’s when the military came to power.

Brazil was under military governments from 1964 to 1985. This is the historical period that people tend to remember and refer to the most. The military came to power because the population asked them to. There was a great fear of communism, and the army would theoretically defend Brazil against this. I am not saying that this fear was justified or that military governments was the right solution, but this is how most people thought at that time.

The last military president surrendered power in 1985. Since then, Brazil has been ruled by civilians. The Workers’ Party (or Partido dos Trabalhadores, PT, in Portuguese) became one of the most competitive political forces in Brazil in this period. Officially founded in 1980, it always had Luiz Inácio Lula da Silva as one of its main leaders. The Workers’ Party always presented itself as broadly leftist, without further specification. Among its founders were sympathizers of Roman Catholic Liberation Theology, radical socialists who defended armed opposition to the dictatorship, and union workers (Lula among them).

Lula was presidential candidate in 1989, 1994 and 1998, always coming in second place with about 30% of the votes. During those years Lula and the Workers’ Party were radically opposed to the economic reforms Brazil was going through. Like in other countries, Brazil was suffering from the crumbling of years of populism. The Washington Consensus was the order of the day, but the Workers’ Party was against everything it called “neoliberalism”. “Out with FHC (Fernando Henrique Cardoso, Brazil’s president from 1995 to 2002) and the IMF” was their usual chant. The party even defended not paying Brazil’s staggering international debts. Lula still hung out with socialist leaders, mostly Fidel Castro. However, in 2002 he presented a different platform. Advised by advertising professional and political strategist Duda Mendonça, he announced that, if elected president, he wouldn’t undo FHC’s economic reforms. Plagued by several international economic crises (Mexico, Asia, Russia, Argentina), Brazil was having a hard time entering the free-market world. The once highly popular FHC came out from office with low popularity. The combination of these factors (FHC’s low popularity at the time and Lula’s promise to pursue a less radical path) opened the way for the Workers’ Party to come to Brazil’s presidency.

In the first years of his government Lula was true to his promise. He not only maintained but deepened FHC’s economic reforms. After the initial shocks, Brazil slowly reacted to the free-market medicine and the economy started to grow. This guaranteed Lula’s reelection in 2006, although by then major corruption scandals already surrounded his presidency, centrally the Mensalão scandal. This scandal broke in 2005 when it was discovered that the Workers’ Party gave monthly payments to several deputies from other parties to vote for legislation that was favored by the ruling party. Although the investigations implicated some of Lula’s closest allies, the president himself managed to get off scot-free.

Lula’s second term in office marked a change from the first and even from his party’s historical stand up until then. The Workers’ Party since its inception always posed as a firm adversary to corruption. Political corruption is hardly something new in Brazil. Going back to the beginning of this text, one of Brazil’s historical problems has always been the difficulty of separating public and private. This was ironically famously observed by Raymundo Faoro, one of the Workers’ Party initial supporters. In Donos do Poder (Owners of the Power) Faoro observed that Brazil has always been led by ruling elites who saw public property as their property. In this scenario the very idea of corruption becomes fuzzy since ruling elites believe they are not stealing – they are simply using what is rightly theirs! It is against this scenario that Faoro and others proposed a technocrat professional bureaucracy. After the Mensalão scandal, however, the Workers’ Party became cynical towards corruption. Their usual response to it became to say that previous governments also did it, that they didn’t invent corruption or simply to say that Lula was an innocent man being politically persecuted by the elites. In sum, Workers’ Party officials and supporters were divided between those who, while not denying the veracity of the corruption scandals, tried to minimize it, and those who completely denied it.

Lula left his second term in office still high on popularity. So much so that he was able to elect his successor, Dilma Rousseff. Dilma, however, would face several difficulties in her presidency. Number one, although somewhat forgotten by the general public, the corruption scandals were still a reality that would surface every now and then. Second, Brazil was suffering the effects of the 2008 world economic crisis. Finally, Dilma was herself a shamefully inept leader.

As I mentioned before, Lula came to power in 2003 mainly because he and others in the Workers’ Party were able to (partially) come to terms with the fact that the Washington Consensus is called a consensus for a reason: as much as some things in political economy are debatable, some are not – centrally, you can’t spend money that you don’t have forever. Dilma would have none of that. Although she is famously very confused in the way she speaks, all things point to the fact that Dilma is trapped in a painfully outdated Keynesian mentality. Trapped in this mentality, she overspent – against Brazilian law. For this reason, she was impeached.

Dilma’s impeachment was followed by a short government of her vice-president, Michel Temer, and now the country is governed by Jair Messias Bolsonaro. Bolsonaro was for many years an obscure politician from Rio de Janeiro, elected mostly to corporately defend the military as workmen. Almost an unofficial union leader for soldiers. Bolsonaro, however, is also an admirer of the Brazilian army in general. He graduated from Academia Militar das Agulhas Negras, something akin to West Point. As a reformed army captain, he fiercely believes that the military did save Brazil from communism in the 1960s. As I mentioned before, that’s exactly what people in the 1960s believed. I’m not saying that they were right.

Ironically, leftists greatly benefited from the military governments of the 1960s-1980s. The guerrilla in Brazil’s countryside was crushed by the armed forces and the urban armed resistance was mostly weak and disorganized. Some important leaders in the Workers’ Party came precisely from these two. But Brazilian armed forces were shamefully unprepared to fight a cultural war. While some sectors of the left were still following Mao Zedong or Che Guevara, trying to reach power by force, others were reading Gramsci and the Frankfurt School, following a more cultural path to power.

In any case, the left was very good at posing as victims. In the years that followed the military governments, there was a tendency to romanticize the resistance. Some people, artists and politicians, made whole careers on that. To be “persecuted by the dictatorship” became a major asset.

But the truth is that Brazilian left never fought for democracy. This isn’t meant to depreciate them. It’s just a statement of fact. Actually, what I meant in the first paragraphs was to show that Brazil has a very weak democratic tradition. Beginning very early in the 20th century, shortly after the Russian Revolution, communists tried to take power in Brazil by force. Again, this is just a statement of fact. This continued up to the early 1960s when, fueled by Cold War fear (some might say paranoia, I don’t really mind), people begged the armed forces to take power. Has it not lasted for so long, the military governments would probably have been long forgotten or taken as something positive. But because they lasted for so long, the left was able to play its cards and pose as democratic victims of an authoritarian regime.

And this is, I believe, how we come to 2020. Bolsonaro has, I believe, a wrong idea about the military governments. Even if they were truly necessary to avoid a communist coup, they shouldn’t have lasted for so long. Besides that, the military presidents had their ups and downs in how they governed the country. Bolsonaro mostly can’t see that. The left, on the other hand, romanticizes the dictatorship. Some of them seem to actually believe in the lie that they were fighting for democracy. They were not. Had they won the war against the military forces, Brazil would have become something akin to Castro’s Cuba or Mao’s China. Had the military not won against the guerrillas, Brazil would have something akin to Colombia’s FARCs.

In sum, Brazil is still trapped in things that happened in the 1960s. Socialists, of course, wanted a big state. That’s basically their ideology. Ironically, in order to fight that, the military built an equally gigantic state. Petra Costa’s family got rich, fabulously rich, during the military governments. Today her family has contracts with the Workers’ Party. Some things change, but others remain the same: some people don’t care if governments are red or blue. All they care about is the green of the dollars. And a smaller state would be bad business for this kind of people.

Why some countries are stuck in poverty

It is fairly common for young children in Brazil (or at least in Rio de Janeiro, the part of the country I know better) to call adults “uncle” or “aunt”. My closest friends’ children call me uncle and I’m totally ok with that. I do see them as my nephews and nieces. That also happens in schools: children up to 11 or 12 call the teachers “aunt”. Some people think that this is normal or even cute. However, I studied in a school that strictly forbid children to call the teachers aunt. The teachers were supposed to be called simply “teacher”. One interchange became folkloric in my house: “Am I your father’s sister? Am I your mother’s sister? Am I married to your uncle? Then I’m not your aunt.” Ouch! As gruff as it might sound, that’s the mentality I grew up with. My mother was also never totally comfortable with some of my friends calling her “aunt”.

One of my favorite interpretations of Brazil came from Sérgio Buarque de Holanda (1902-1982). In his book Raízes do Brasil (Brazil roots, 1936) he made an analysis of the country, saying that the problem with Brazilians is that they are cordial. Using Max Weber’s categories, Holanda said that Brazilians don’t know how to conduct formal, impersonal relationships. It is really hard for them (or I should say, for us) to understand that the guy in office is the guy in office and not our friend.

I would say that many times I saw Holanda’s interpretation in action. Students who thought they were my friends and that because of that I would go easy on their exams. Colleagues who thought I wouldn’t fine them when I was working in the library. People I barely knew, who were friends of my friends, who thought I would give them answers for the exams. I managed to be friends of some students, but that was the exception. Most students had a hard time distinguishing between “Bruno, my friend” and “Bruno, my professor”. Worse, some, I don’t know how, came to the conclusion that I was their friend.

Lula da Silva, Brazil’s former president, presented himself as a father. He introduced Dilma Rousseff, his successor, as a mother. Getúlio Vargas, the horrendous dictator from the 1930s was widely known as “the father of the poor”. I’m sad to say that Jair Bolsonaro, Brazil’s current and supposedly right-wing president, doesn’t really scape this logic. It may be nice and cute when little children call adults aunt or uncle, but it sickens me when grownups use this language. Even more so, when they use it to people they don’t even know!

Sergio Buarque de Holanda is one of the few things from college I profited from reading. It helped me to escape the Marxist bog that is much of Brazilian humanities academia. Years later I read Good Capitalism, Bad Capitalism and I discovered that Brazil was not alone. That is the problem with many so-called capitalist countries that still lag behind. They are not really capitalist in the sense that the US, much of Western Europe or Japan and other Asian countries are, and one of the main reasons for that is that people don’t know how to conduct impersonal, formal relationships. The teacher is not your aunt, and the country is not a big family.

130 years of Republic in Brazil

Yesterday Brazil celebrated 130 years of Republic. It might be a personal impression but it seems to me that there is growing support for monarchy among conservatives. It’s very funny.

Brazil was initially a monarchy. Dom Pedro I, the prince regent of Portugal, declared Brazil’s independence from his father’s country in 1822. But he had to go back to Portugal less than 10 years later, leaving his son, Dom Pedro II, in Brazil. Dom Pedro II was too young to govern, and the 1830s were a mess in Brazil. When he effectively became emperor, things got much better.

Dom Pedro II ruled Brazil for about 50 years. To my knowledge, he was a wise man, genuinely concerned about Brazil. The 1824 Constitution was fairly liberal, and so were the emperors. Centrally, Dom Pedro II wanted to abolish slavery, but he was going against Brazilian elites on this. It’s not a coincidence that slavery was abolished in 1888 and the monarchy fell in the next year.

To my knowledge, Brazil had two good emperors and the constitution that ruled the country at that time was mostly good. However, Brazil was extremely oligarchal, and there was little that the emperors could do about that. I believe that Dom Pedro II was a wise and patient man, who slowly did the reforms the country needed.

I don’t know if Dom Pedro II’s daughter, Isabel, would have been a good empress. But I know that Dom Pedro II himself didn’t offer resistance when some republicans changed the regime. He peacefully went to exile in Europe. Dom Pedro manifested on some occasions that he was a republican. Maybe he was being ironic. Maybe not. In any case, I believe that he was glad to see the country coming to age, and being able to take care of itself without an emperor.

The first 40 years of Republic were not too bad. They were not perfect either! Slavery didn’t make a comeback. The republican constitution was written after the American one. The economy was mostly free, was it not so from the fact that coffee oligarchies ruled things to benefit their business. Things got really bad when the horrendous dictator Getúlio Vargas came to power in 1930.

I think there is something funny in the way some conservatives miss the monarchy. It wasn’t too bad. But it was also a time when Brazil suffered a lot under slavery and oligarchy. I’m certainly not sure if the monarchy was the best antidote to that.

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.

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.