Today's Estado de São Paulo leads with a story about the lack of manpower in industry, lending some support to my position. The story shows the shortfalls in a range of industries, including construction, steel, woodworkers and even the automobile industry that was reducing work force numbers until last year's reduction in the IPI tax.
One of the points that national industry leaders such as Jorge Gerdau make is that the education system is failing to provide enough trained young workers to meet the needs of the growing economy. It will be impossible in the long run to fix the Brazilian economy without first providing the educational opportunities to prepare young Brazilians for the skilled jobs that lead to enjoyment of a higher quality of life.
The logic works quite simply: insufficient skilled workers leads to insufficient supply of building materials (especially complicated components of housing systems), which in turn leads to increased prices for scarce housing units.
The government's populist impulse emphasizes making financing available for housing through the Caixa Econômica, without assuring the people they are trying to please that there will be sufficient units at a fair price to occupy.
