Brazil's Amazing New Middle Class

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Martin D. Weiss, Ph. D. discusses the new middle class emerging in Brazil and what benefits they will bring to the global economy. Dr. Weiss takes a closer look at Brazil's new middle class and the large social buffer they are creating between the rich and poor.

Brazil's new middle class is transforming the world economy virtually overnight. Veja magazine, Brazil's leading news weekly, reports that in just the last two years 20 million Brazilians have left poverty behind and joined this New Middle Class.

"Compared to the half billion new consumers that have emerged in China and India in the last decade," write the authors of the Veja article, "the Brazilian phenomenon may seem small. But it is still spectacular in its own context. It's as if two nations the size of Portugal have emerged out of poverty -- an unprecedented historical event in such a short period of time."

They remind us that, regardless of when or where, the varied histories of the world's leading industrial nations have one unequivocal attribute in common: The rise of a large middle class. Brazil's New Middle Class is the largest in the country with 86.2 million people. Members of Brazil's New Middle Class buy four out of every 10 computers sold in the country. They've got four out of 10 of the nation's cell phone lines. They live in 70% of the homes financed by the giant government-run Caixa Economic Federal. And they are the recipients of 70% of newly issued credit cards. They are creating a large social buffer between rich and poor, spurring new businesses and creating new jobs for low-income Brazilians.

In Brazil, the poorest of the poor regions are in north and the northeast and, until recently, most local stores were Mom-and-Pop shops. Now they are starting to transform themselves into powerful regional and national chains that target Brazil's New Middle Class. Established firms are also jumping in. The Swiss multinational Nestlé has just created a new product line targeted to Brazil's New Middle Class. And Cyrela, a construction company that previously specialized in high-end homes, just announced the creation of a new unit also dedicated to the New Middle Class. Every major company is strategizing how to best serve the New Middle Class.

This phenomenon is not limited to Brazil. Latin America specialist Rudy Martin sees a similar pattern all over the continent. Larry Edelson and Tony Sagami report the same in China and India, although on a much grander larger scale. Sean Brodrick sees its impact in every remote region of the hemisphere he visits. Everywhere, these new middle classes are transforming the world economy.

"The new, burgeoning middle classes in Brazil and around the world, plus the booming bilateral trade between Asia and developing nations are two critical pieces in the same puzzle: Surging commodity prices. These are not seasonal factors. Nor are they driven by politics, speculation or one-time disasters. They are persistent and powerful drivers of the commodity bull market. Consider global energy markets. Some still hope that alternate sources will sooner or later begin to catch up with soaring demand," Dr. Weiss states.

To read this issue online, please visit:

http://www.moneyandmarkets.com/Issues.aspx?The-Amazing-New-Middle-Classes-1667

About MARTIN D. WEISS & MONEY AND MARKETS

Martin D. Weiss, Ph.D., founder and president of Weiss Research, Inc. and a leading advocate for investor safety, is a nationally recognized expert on domestic and international financial markets. With more than 35 years of experience, including many years in Latin America and Asia, Dr. Weiss has helped empower millions of investors to make better financial decisions through his monthly Safe Money Report and daily Money and Markets.

Dr. Weiss' keen understanding of foreign markets and the global economy has earned him a reputation for thoughtful, in-depth analysis that investors can rely upon to make informed financial decisions. Regularly called upon by the media for his independent investing guidance, he has been featured in publications nationwide, including The Wall Street Journal, The New York Times, Chicago Tribune, Investor's Business Daily, and Forbes and has also appeared on CNN and CNBC.

Throughout his career, Dr. Weiss has been an advocate for consumers and investors in the insurance, banking and brokerage industries, dedicating his time and resources providing analysis and data for Congressional testimony, constructive proposals for reforms in the securities industry and legislation for full financial disclosure as well sound accounting and fiscal policy. In November 2004, he launched the Sound Dollar Committee, a nonprofit organization dedicated to building a network of investors seeking to protect the nation's future by demanding honesty in government accounting, a balanced budget and sound economic policy.

Dr. Weiss is author of The New York Times best-seller, The Ultimate Safe Money Guide, which gave baby boomers a road map to grow their wealth safely. It was listed on the New York Times Business, Wall Street Journal, and BusinessWeek best-seller lists, as well as the Barron's Roundup for 2002.

Dr. Weiss holds a bachelor's degree from New York University, a Ph.D. from Columbia University and is fluent in eight European and Asian languages.

Money and Markets (www.moneyandmarkets.com) is a free daily investment newsletter from Dr. Martin Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Weiss Research, Inc. is located in Jupiter, Florida. For more information about our editors, or to set up an interview, please contact Jennifer Moran at 561-627-3300 or visit www.moneyandmarkets.com.



Author Information

Andrea Baumwald
Weiss Research, Inc.