Lula’s Party Proposes Escaping Economic Crisis With Past Policies
- Workers’ Party would scrap constitutionial spending cap
- PT would introduce capital controls, tax bank spreads
Fernando Haddad, former mayor of Sao Paulo, third right, and Senator Gleisi Hoffman, president of the Workers' Party (PT), right, join demonstrators during a rally against local government officials and in support of jailed former president Luiz Inacio Lula da Silva in Curitiba, Brazil, on Aug. 30.
Photographer: Dado Galdieri/BloombergBrazil’s Workers’ Party wants to return to its policies of government intervention and public spending, even though they helped plunge Latin America’s largest nation into the worst recession.
If it were to win the October presidential race, the Workers’ Party would put the economy back on track by scrapping spending caps, fueling public works, and offering cheaper credit, Guilherme Mello, one of the party’s economic advisers told Bloomberg in an interview. The PT, as the party is called by its Portuguese acronym, would also tax certain financial applications to avoid currency speculation.