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Causes of the great depression
political inestability and dependence on exports
Political inestability
Prestes, elected in 1930, was overthrown by Vargas
Economy dependent on coffee
Once the great depression hit, the main economy source of Brazil was affceted by reducing their coffee exports
Vargas’s economy response
Import Subsitution Industralization (ISI), Ministry of Labour
Import Substitution Industrialization (ISI)
Coffee barons started investing in the industries which produced good that were before imported.
Ministry of Labour
Unions were able to be part of the management. The legislation included minimum wages, maximum working week hours. As well as security system.
Limitations of Ministry of Labour
Only for industrials workers, Vargas used labour laws to take actions against individuald and particular state that not cooperate with Vargas regime.
As well as to avoid revolutionary force.
Repression
Alianca Nacional Libertadora (ANL) leftist parties, communist party.
Communist Party
They tried to overthrown the government. Vargas took extreme decision and used labour policies. Arresting ANL and communist leader and applying press censorship.