ABSTRACT
In a recent paper published in Novos Estudos Cebrap, Arminio Fraga maintains that the Brazilian State, in addition to being costly and inefficient, acts to deepen inequality. The economist proposes a set of reforms seeking its drastic reduction. Our article aims to refute this assessment, based on theoretical and empirical arguments and extensive literature, and to point out the risks to economic and social policies brought about by the suggested reform agenda.
KEYWORDS:
political economy; economics of the public sector; income distribution; inequality