End of 6×1: Drop in purchasing power would nullify the effect of the PEC, says economist

Loaded in the Senate, the PEC (Proposed Amendment to the Constitution) for the end of the 6×1 scale raises concerns about the increase in costs for the productive sector and consumers.

Juliana Inhasz, economics professor at Insper, said in an interview with CNN Brasil that she fears how the change could affect workers' pockets and quality of life.

"If this measure leads to an increase in prices, to inflation, which will somehow erode the purchasing power of this population, the measure will be very ineffective", he asks.

She sees no guarantees that workers will be able to produce more with fewer hours worked weekly, which could increase the cost of production and bring about the need to increase the number of employees in companies.

"This may even lead to the need for additional hiring to try to maintain previous production", says Inhasz.

The professor analyzes that this increase in costs for companies should then lead to proportional transfers to the customer.

It proposes a previous analysis of the low income of the Brazilian population and predicts that workers still maintain double shifts due to low purchasing power.

It is not possible to guarantee that the end of 6x1 will increase productivity, says professor | NOW CNN

"This society will only improve from the moment we are able to have productivity and income increases", says Inhasz.

Regarding the transition period, the teacher considers it to be short and asks for planning for effective gains in production, which would take "adaptation time". She sees, however, a search for immediate effects of the proposal in 2026.

"We understand why this period is short. There is a need to return some type of benefit to society, we are in a year in which these measures are implemented very quickly", he says.

Study: end of the 6×1 scale can reduce GDP, income, jobs and companies

Source: CNN