“Having the exchange rate at BRL 1.80 [to the dollar] doesn’t exist. […] Everyone was going to Disneyland, maids were going to Disneyland, a huge party.” Despite having an opportunity to explain how the positive low-interest rate scenario in Brazil, causing changes to foreign exchange rates, could actually be beneficial for the country, Economy Minister Paulo Guedes stuck his foot in his mouth once again. While angering poorer social strata and exposing the class prejudice held by many of Brazil’s financial elites, Mr. Guedes’ unfortunate comments also shed light on a lingering phenomenon in the country: how domestic work is symptomatic of inequality.
The backlash to Mr. Guedes’ comments was immediate. Social media was flooded with criticism, even from some of his staunch supporters from financial markets. While the Economy Minister’s rationale may make sense—after peeling back the poor phrasing and disparaging language, it is true that Brazil increased its spending on foreign consumption during the 2010s boom years instead of focusing on tools to improve productivity—Mr. Guedes picked the wrong targets, as this economic conundrum shows little connection to the reality of domestic workers in Brazil.
According to the national statistics bureau IBGE, Brazil has over 6.2 million domestic workers, among them maids, cleaners, nannies and other similar professions. Some 94.1 percent of this group are women, and most of them are black and work under informal conditions with little social protections, earning average wages of BRL 740, below the national minimum salary of BRL 1,000.
“With the wage a domestic worker earns in this country, traveling to Disneyland would only have happened to...
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