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Eurico Gaspar Dutra

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Incomes policies in economics are economy-wide wage and price controls , most commonly instituted as a response to inflation , and usually seeking to establish wages and prices below free market level.

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59-624: Eurico Gaspar Dutra ( Portuguese: [ewˈɾiku ɡasˈpaʁ ˈdutɾɐ] ; 18 May 1883 – 11 June 1974) was a Brazilian military leader and politician who served as the 16th president of Brazil from 1946 to 1951. He was the first president of the Fourth Brazilian Republic , which followed the Vargas Regime . Dutra was born in Cuiabá , Mato Grosso . He later falsified his birth year to 1885, at age 19, so that he would have

118-608: A " social contract " in which unions would accept smaller wage increases, and business would constrain price increases, imitating Nixon's policy in America. Price controls ended with the election of Margaret Thatcher in 1979. Australia implemented an incomes policy, called the Prices and Incomes Accord during the 1980s. The Accord was an agreement between trade unions and the Hawke Labor government. Employers were not party to

177-790: A physical compatible with the age, in order to facilitate his entry into the Army. He studied at the Preparatory and Tactical School of Rio Grande do Sul (1902–1904) and at the Military Academy of Brazil (Military School of ‘’Praia Vermelha’’ in Rio de Janeiro) in 1904, of which he was expelled for taking part in an uprising that same year, related to the Vaccine Revolt , but pardoned, returned to school, now based in Realengo, completing

236-485: A president be a native-born citizen of Brazil, at least 35 years of age, a resident of Brazil, in full exercise of their electoral rights, a registered voter, and a member of a political party ( write-in or independent candidates are prohibited). The president of Brazil serves for a term of four years, and may be re-elected for a single consecutive term. This two-term limit, however, is not for life—a former president who has served for two consecutive terms may run for

295-462: A presidential term, given that, according to the Constitution , the vice-president becomes acting president during the president's travels abroad. A sitting president (or governor or mayor) who wishes to run for a different office, regardless of the intended jurisdiction or branch of government, must resign from office at least six months before election day . The possibility of reelection

354-486: A region comprising the Netherlands and the northern part of Belgium). In 1982, then Prime Minister and Finance Minister Rob Muldoon imposed a simultaneous freeze on wages, prices and interest rates in an effort to curb inflation, despite public resistance. These measures were subsequently repealed by Muldoon's successor David Lange and Finance Minister Roger Douglas . In 2007, Robert Mugabe 's government imposed

413-623: A shift from centralised wage fixation to enterprise bargaining . The Accord ceased to play a major role after the recession of 1989–92, and was abandoned after the Labor government was defeated in 1996. Italy imitated the United States' price and wage controls in 1971, but soon gave up the policy to focus on controlling the price of oil . The polder model in the Netherlands is characterized by tri-partite cooperation between employers' organizations such as VNO-NCW , labour unions such as

472-588: A trial then takes place at the Supreme Federal Court . In the case of "crimes of malversation", which must fall into one of seven broad areas and which is defined in more detail in law, a trial takes place at the Federal Senate . During the trial, the vice president exercises executive power. If the trial does not result in a conviction within 180 days, the president resumes office; a conviction results in removal from office and succession by

531-673: A volatile political issue away from the Committee of Public Safety and Maximilien Robespierre , enabling them to focus on larger political issues more closely related to completing the French Revolution . By creating the General Maximum, Robespierre shifted the attention of the French people away from government involvement in widespread shortages of money and food to a fight between consumers and merchants. The text of

590-640: Is a ranch located on the outskirts of the capital and is used as a country retreat by the president. The Palácio Rio Negro in Petrópolis , Rio de Janeiro, is a summer retreat of the president, although used rarely. The official residence of the vice president is the Jaburu Palace in Brasília . In the 2000s, the federal government decided to establish Regional Offices of the Presidency of

649-461: Is known as the thirteenth salary ), the president receives 13 payments per year, resulting in an annual salary of R$ 402,151.10. The Palácio do Planalto in Brasília is the official workplace of the president and the Palácio da Alvorada their official residence. The president is entitled to use its staff and facilities. The Residência Oficial do Torto , popularly known as Granja do Torto ,

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708-546: Is said to have begun with the Wassenaar Accords of 1982 when unions, employers and government decided on a comprehensive plan to revitalize the economy involving shorter working times and less pay on the one hand, and more employment on the other. The polder model is widely, but not universally, regarded as successful incomes management policy. This model is also used in Belgium , hence its name (the "polders" are

767-458: Is the 39th and current president. He was sworn in on 1 January 2023. As a republic with a presidential executive, Brazil grants significant powers to the president, who effectively controls the executive branch, represents the country abroad, and appoints the cabinet and, with the approval of the Senate , the judges for the Supreme Federal Court . The president is also the commander-in-chief of

826-633: The FNV , and the government . These talks are embodied in the Social Economic Council (Dutch: Sociaal-Economische Raad, SER). The SER serves as the central forum to discuss labour issues and has a long tradition of consensus, often defusing labour conflicts and avoiding strikes. Similar models are in use in Finland , namely Comprehensive Income Policy Agreement and universal validity of collective labour agreements . The current polder model

885-682: The French Revolution , "The Law of the Maximum" imposed price controls (by penalty of death) in an unsuccessful attempt to curb inflation, and such measures were also attempted after World War II . Peacetime income policies were resorted to in the U.S. in August 1971 as a response to inflation. The wage and price controls were effective initially but were made less restrictive in January 1973, and later removed when they seemed to be having no effect on curbing inflation. Incomes policies were successful in

944-588: The Law of Suspects , when a citizen informed the government about a merchant who was in violation of the law, they were considered to have done their civic duty. During World War II , price controls were used in an attempt to control wartime inflation. The Franklin Roosevelt Administration instituted the OPA ( Office of Price Administration ). That agency was rather unpopular with business interests and

1003-732: The Paulista Avenue ; the building also houses Banco do Brasil's regional headquarters in São Paulo. The presidency of the republic also maintains regional offices in Porto Alegre and in Belo Horizonte . For ground travel, the president uses the presidential state car , which is an armored version of the 2024 Chery Tiggo 8 Max Drive . A 1952 Rolls-Royce Silver Wraith is used by the president on ceremonial occasions, such as Independence Day commemorations, state visits and

1062-682: The United Kingdom during World War II but less successful in the post-war era. Incomes policies vary from "voluntary" wage and price guidelines to mandatory controls like price/wage freezes. One variant is "tax-based incomes policies" (TIPs), where a government fee is imposed on those firms that raise prices and/or wages more than the controls allow. Some economists agree that a credible incomes policy would help prevent inflation. However, by arbitrarily interfering with price signals , it provides an additional bar to achieving economic efficiency , potentially leading to shortages and declines in

1121-774: The armed forces . Presidents in Brazil have significant lawmaking powers, exercised either by proposing laws to the National Congress or by using Medidas Provisórias ( provisional measures ), an instrument with the force of law that the president can enact in cases of urgency and necessity except to make changes to some areas of law (provisional measures cannot be used to change criminal law or electoral law). A provisional measure comes into effect immediately, before Congress votes on it, and remains in force for up to 60 days unless Congress votes to rescind it. The 60-day period can be extended once, up to 120 days. If Congress, on

1180-602: The fifth constitution of Brazil was enacted, marking the country's return to democratic rule. Later that year, the government created the Social Service of Industry (SESI) and Social Service of Commerce (SESC), and the General Staff, the future General Staff of the Armed Forces (EMFA). The same year, the president ordered the closing of casinos and prohibited gambling in the country. In 1947, he registered

1239-535: The inauguration of the president-elect. The presidential aircraft is a military version of an Airbus A330-200 , called KC-30. Two modified Embraer 190 jets, air force designation VC-2, are used for short and medium range presidential travel. When the president is on board, the aircraft receive the call sign " Brazilian Air Force One ". Two modified military versions of the Eurocopter Super Puma , air force designation VH-34 , are currently used as

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1298-672: The president of the Federative Republic of Brazil ( Portuguese : presidente da República Federativa do Brasil ) or simply the President of the Republic , is the head of state and head of government of Brazil . The president leads the executive branch of the federal government and is the commander-in-chief of the Brazilian Armed Forces . The presidential system was established in 1889, upon

1357-556: The 1974 federal election, Progressive Conservative Party leader Robert Stanfield proposed the imposition of a wage and price freeze on the Canadian economy as a response to rising inflation due to the oil crisis . The Liberal government under Pierre Trudeau was originally opposed to this idea, but after winning the election, introduced the Anti-Inflation Act in 1975. This act contained wage and price controls on parts of

1416-753: The 4th Cavalry Divisional Regiment (1931–1933) in Três Corações , where he fought the Constitutionalist Revolution in São Paulo in 1932. Defended the government of President Washington Luís against the rebels of 1930s, but already in 1932, fought the Constitutionalist Revolution in São Paulo. Appointed commander of the 1st Military Region (1935–1936), stood out in reaction to the communist movement in 1935 , episode known as “Intentona Comunista”, occupying

1475-501: The Accord. Unions agreed to restrict wage demands, and the government pledged action to minimise inflation and price rises. The government was also to act on the social wage. At its broadest, this concept included increased spending on education as well as welfare. Inflation declined during the period of the Accord, which was renegotiated several times. However, many of the key elements of the Accord were weakened over time, as unions sought

1534-659: The Brazilian economy under his administration was 7.6%. During the Dutra government construction of the hydroelectric plant of Paulo Afonso, Bahia, and the President Dutra highway linking Rio to São Paulo was initiated. In October 1948 his government set up the Superior School of War (ESG), with American support. Upon leaving the presidency, he remained active in politics until he ran again for president in

1593-470: The General Maximum was written towards businessmen who were profiting on a large scale from the demise of the French economy. However, in practice, the law ultimately targeted local shopkeepers, butchers, bakers, and farmers-the merchants who were profiting the least from the economic crisis. With the General Maximum, Robespierre offered the people an answer regarding whom to blame for their poverty and their hunger. Furthermore, considering its association with

1652-760: The National Defense magazine in 1918, fought the uprising known as the "18 Fort" in 1922, in Rio de Janeiro, and participated, integrating the North Detachment, under the command of General Mena Barreto, of the fighting against an insurgency erupted in Manaus that radiated to Pará . By having fought the Revolution of 1930 , he was sent to the command of the 11th Cavalry Independent Regiment in Ponta Porã . Promoted to colonel, Dutra took command of

1711-473: The Republic in certain key Brazilian cities. Those regional offices are not presidential residences, but they are fully staffed offices ready to receive the president and his ministers at any time, and they function as a presidential workplace when the president is in those cities. The first regional office of the presidency was established in the city of São Paulo, and is located at the Banco do Brasil building at

1770-468: The Republic of the United States of Brazil . On 15 March 1967, the country's official name was changed to Federative Republic of Brazil . On that same date, Arthur da Costa e Silva was sworn in as President succeeding Castello Branco. Since Costa e Silva, therefore, all presidents of Brazil have borne the full title of President of the Federative Republic of Brazil . Incomes policy Incomes policies have often been resorted to during wartime. During

1829-802: The appointment of Osvaldo Aranha delegate of Brazil to the United Nations (UN) , the forfeiture of the Brazilian Communist Party (PCB) , breaking off diplomatic relations with the Soviet Union (USSR) and achieved, in Petrópolis , the Inter-American Conference of Peacekeeping and Security of the Continent, which was attended by the U.S. president, Harry Truman . Closer relations with the Americans

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1888-408: The best chance of being credible and effective for the sectors of the economy dominated by monopolies or oligopolies , particularly nationalised industry , with a significant sector of workers organized in labor unions . Such institutions enable collective negotiation and monitoring of the wage and price agreements. Other economists argue that inflation is essentially a monetary phenomenon, and

1947-525: The country was officially styled Republic of the United States of Brazil , and from 1937 to 1967 the country was styled simply The United States of Brazil , and thus the full title of the presidents of the Republic from 1891 until 1967—that is, from Deodoro da Fonseca 's inauguration as President (between 1889 and 1891 he served as Head of the Provisional Government) until the end of Humberto Castello Branco 's term in 1967—was President of

2006-596: The course in 1906. He was also a student of the School of War in Porto Alegre (1906), the School of Artillery and Engineering, where perfected in mechanics, ballistics and metallurgy (1908–1910), and the School of General Staff, where he graduated as the 1st in class and received the rare mention "très bien" (1922), acting shortly after, in the repression of the São Paulo Revolution of 1924. Helped found

2065-504: The dollar. The 90-day freeze became nearly 1,000 days of measures known as Phases One, Two, Three, and Four, ending in 1973. In these phases, the controls were applied almost entirely to the biggest corporations and labor unions, which were seen as having price-setting power. However, 93% of requested price increases were granted and seen as necessary to meet costs. With such monopoly power, some economists saw controls as possibly working effectively (though they are usually skeptical on

2124-554: The economy and remained in force until 1978. In 1979 the anti-inflation board was dissolved and the Anti-Inflation Act repealed. The National Board for Prices and Incomes was created by the government of Harold Wilson in 1965 in an attempt to solve the problem of inflation in the British economy by managing wages and prices. The Callaghan government in the 1970s sought to reduce conflict over wages and prices through

2183-618: The end of the regime that started in 1930, participating in the following deposition of Getúlio Vargas in October 1945, continuing the interventionist doctrine, practiced at the time by the Brazilian army . In this context, the deposed leader announced the following month his support for Dutra, the candidate of the Army, at the expense of the candidate of the Air Force , Eduardo Gomes , in the elections that followed. On 18 September 1946,

2242-547: The government included the “Salte Plan”, named for an emphasis on Health, Food, Transportation and Energy. Proposed in 1947, it aimed at the management of public spending and investment in key sectors in the country but only began to receive funding from the budget in 1949, being forgotten in 1951. During this period measurements the country's economic growth by calculating the Gross Domestic Product (GDP) were first regularly published. The average annual growth of

2301-454: The guardianship of the state over union activities guaranteed by ordinance in 9.070 of March 1946, a regulation to limit the right to strike. Concomitant with the union repression and wage restraint , economic policy has gone through two phases: the former was liberal and sought to break with previous forms of intervention in the economy. However, imports of goods led to a rapid depletion of the country's foreign exchange reserves. In 1947, under

2360-497: The guidance of the International Monetary Fund (IMF) a second phase, in which the exchange control was retaken, kept the Brazilian cruzeiro at high levels compared to the U.S. currency. This policy discouraged exports, encouraging, on the other hand, the import of equipment, machinery and other inputs, excluding consumer goods, and favored the expansion of the manufacturing sector. The development strategy of

2419-524: The indirect elections for president of 1964 . Facing a difficult election against military-backed General Humberto de Alencar Castelo Branco , Dutra received only 0.55% of the vote. He died away from public life in Rio de Janeiro on 11 June 1974, at 91. His body was buried in the São João Batista Cemetery . President of Brazil Recent elections The president of Brazil ( Portuguese : presidente do Brasil ), officially

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2478-421: The issue of controls). Because controls of this sort can calm inflationary expectations, this was seen as a serious blow against stagflation . The first wave of controls were successful at curbing inflation temporarily while the administration used expansionary fiscal and monetary policies. However, the long-term effects proved to be destabilizing. Left unsuppressed after the initial price controls were relaxed,

2537-510: The main presidential helicopters. The president may be removed from office using one of two procedures. In either case, two-thirds of the Chamber of Deputies must accept charges against the officeholder ( impeachment ); and if the Senate accepts the investigation, the president is suspended from exercising the functions of office for up to 180 days. In the case of "common criminal offenses",

2596-401: The only way to deal with it is by controlling the money supply , directly or by changing interest rates . They argue that price inflation is only a symptom of previous monetary inflation caused by central bank money creation . They believe that without a totally planned economy the incomes policy can never work, the excess money in the economy greatly distorting other areas, exempt from

2655-492: The other hand, votes to approve the provisional measure, it becomes an actual law, with changes decided by the legislative branch. The provisional measure expires at the end of the 60-day period (or the 120-day, in the case of extension), or sooner, if rejected by one of the Houses of Congress. Article 84 of the current Federal Constitution, determines that the president has the power to The Constitution of Brazil requires that

2714-607: The overly expansionary policies proceeded to exacerbate inflationary pressures. Meat also began disappearing from grocery store shelves and Americans protested wage controls that didn't allow wages to keep up with inflation. Since that time, the U.S. government has not imposed maximum prices on consumer items or labor (although the cap on oil and natural gas prices persisted for years after 1973). During times of high inflation, controls have been called for; in 1980 during unprecedented inflation, BusinessWeek editorialized in favor of semi-permanent wage and price controls. During

2773-431: The people were able to purchase food at a reasonable rate, the Maximum was mostly a failure. Some merchants having found themselves forced into a position to sell their goods for a price below cost (e.g. cost of baking bread or growing vegetables ) chose to hide their expensive goods from the market, either for personal use or for sale on the black market . However, the General Maximum was very successful in deflecting

2832-480: The policy. During the French Revolution in the 1790s, "The Law of the Maximum" was imposed in an attempt to decrease inflation. It consisted of limits on wages and food prices . Many dissidents were executed for breaking this law. The law was repealed 14 months after its introduction. By turning the crimes of price gouging and food hoarding into crimes against the government, France had limited success. With respect to its overt intention, that of ensuring

2891-458: The post of Minister of War (1936–1945). During World War II, he was among the Brazilian military leaders who were against an alignment with allies and a deeper involvement of the country in the conflict. With, although modest, Brazil's participation in the war on the Allied side , and the growing pressure from civil society for democratization of the country, Dutra formally adhered to the idea of

2950-433: The presidency again after at least one term has elapsed. A vice president or other officer who succeeds to the presidency or who serves, albeit briefly, as acting president during a certain presidential term may subsequently be elected or reelected to the presidency only once, as the consecutive term limit already applies. In practice, Brazilian vice-presidents almost always serve as acting president at some point during

3009-419: The proclamation of the republic in a military coup d'état against Emperor Pedro II . Since then, Brazil has had six constitutions , three dictatorships, and three democratic periods. The Constitution of Brazil , along with several constitutional amendments , establishes the requirements, powers, and responsibilities of the president, their term of office and the method of election. Luiz Inácio Lula da Silva

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3068-580: The quality of goods on the market and requiring large government bureaucracies for enforcement. That happened in the United States during the early 1970s. When the price of a good is lowered artificially, it creates less supply and more demand for the product, thereby creating shortages. Some economists argue that incomes policies are less expensive (more efficient) than recessions as a way of fighting inflation, at least for mild inflation. Others argue that controls and mild recessions can be complementary solutions for relatively mild inflation. The policy has

3127-402: The time that this would likely lead to an immediate inflationary impulse (essentially because the subsequent depreciation of the dollar would boost the demand for exports and increase the cost of imports). The controls aimed to stop that impulse. The fact that the election of 1972 was on the horizon likely contributed to both Nixon's application of controls and his ending of the convertibility of

3186-468: The vice president. The seven areas are: The following privileges are guaranteed to former presidents by law: All presidents of Brazil have borne the title President of the Republic . That title has been used by all the constitutions of Brazil since the proclamation of the Republic to refer to the head of the Executive Branch. However, from the proclamation of the Republic in 1889 until 1937

3245-484: Was a move widely applauded by the public and a number of Keynesian economists. The same day, Nixon also suspended the convertibility of the dollar into gold, which was the beginning of the end of the Bretton Woods system of international currency management established after World War II. The 90-day freeze was unprecedented in peacetime, but such drastic measures were thought necessary. It was quite well known at

3304-532: Was established by the 16th Amendment to the Constitution, in 1997. Before that, presidents had been barred from immediate reelection for all of Brazil's republican history, with the single exception of the latter half of the Vargas Era , from 1937 to 1945. The office was limited to men until the 1937 Constitution . Under the original text of the 1988 Constitution the presidential term lasted 5 years, but it

3363-564: Was evidenced also in the formation of the Joint Commission Brazil-United States, known as Abbink Mission, headed by John Abbink and Minister Octavio Gouveia de Bouillon. Assignment was to diagnose the main problems of the Brazilian economy and, as a special recommendation, the use of external resources in the oil sector. Still in 1947 was the intervention of the Ministry of Labour in many unions, continuing

3422-581: Was phased out as quickly as possible after peace had been restored. However, the Korean War brought a return to the same inflationary pressures, and price controls were again established, this time under the OPS ( Office of Price Stabilization ). In the early 1970s, inflation had been much higher than in previous decades, getting above 6% briefly in 1970 and persisting above 4% in 1971. U.S. President Richard Nixon imposed price controls on August 15, 1971. This

3481-417: Was reduced to 4 years in 1994 by a constitutional amendment. As of 2015, the president receives a monthly salary of R$ 30,934.70, along with an undisclosed expense account to cover travel, goods and services while in office. Given that in Brazil all private and public sector employees and civil servants receive an additional compensation equivalent to one monthly salary after a year of work (this compensation

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