Abstract

This article shows that the specific conditions for revolutionary changes in the
Brazilian society are reaching maturity. The alliance of classes which commands the State
cannot govern anymore because the social body does not want to be governed as it was
before. The general violation of social order is a manifestation of this situation and have its
origins in the contradiction between the latifundio and the industrialization which was characterized
by large excess supply of labor. The current recessive phase of the business cycle is
characterized both by the strong idle capacity in the heavy industry and the large bottleneck
in the public services sector. The privatization of public services as well the reformulation of
financial intermediation is the solution which is coming out because the financial crisis of the
State is the weak link of the economic system.

JEL Classification: E32; H12; H11.