Could an ultra-liberal economic policy improve the Brazilian economy?

The new Brazilian president, Jair Bolsonaro , wants to implement an "ultra-liberal" economic policy: Privatisations to reduce the public debt (by 20%); Creation of a funded pension system ; Reduction in the tax burden, especially in direct household taxes; Reduction in welfare benefits, public spending freeze; Increased labour market flexibility and downward pressure on wages. Could this type of economic programme improve the Brazilian economy and correct its structural problems? That can be the case if: The weight of the public debt and the deterioration in public finances prevent growth; There is a shortfall in savings to finance the economy; The tax burden is abnormally high; Corporate profitability is too low, which depresses investment. We see that Brazil’s key problem is the shortfall in savings and investment, accounting for the stagnation of productivity, and also the excessive weight of public debt servicing. Reducing the public debt and boosting savings are therefore legitimate objectives. It does not seem necessary to reduce the tax burden or increas e profits.