Brazil's Poor Middle Class

Although Brazil attracts a slightly larger amount of FDI, Mexico's general population is much closer to the American definition of 'middle class' than Brazil's. Lately the cliché ‘the rise of the middle classes’ reveals itself when talking about any of the emerging economies. But what does 'middle class' really mean?

For Brits, this might mean anyone who shops at Brazil’s version of Waitrose or who has golf clubs in the back of their Volvo. Alternatively, if you’re in the US, maybe it’s an image of white picket fences springing up across the Amazon.

But Brazil’s middle class is, by most of our standards, poor. The Brazilian government’s definition is any household with a combined monthly family income of between R$1,000 ($631) and R$4,000. In other words, a whole family surviving on about $20 a day is still considered middle class. Aspirations are high. Since the US has a strong cultural influence on Brazil, when Brazilians think of the middle class, they also often think of a much higher standard of living than $20 a day could afford.