In this article I analyze Salvador Allende’s economic program and policies. I argue that the explosion of inflation during his administration (above 1,500% on a six-month annualized measure) was predictable, and I show that the government’s response to it was political. I postulate that runaway inflation generated major disaffection among the middle class and that that unhappiness paved the way to Pinochet’s coup d’état in 1973.

It is well known that a consumer price-neutral reform of consumption taxes and import tariffs is welfare-improving. This paper shows that such price controls are inferior to quantity controls in terms of welfare improvement. The paper next turns to a comparison of different abatement strategies. Whether or not policy changes should fix private abatement or public abatement relates to the level of earmarking, and depends on the relationship between private production and public abatement. There are cases in which increased public abatement only improves welfare by more than both increased private and public abatement together. The paper recommends that environmental earmarking in the form of public abatement should be delivered to cushion price hikes and sustain private energy consumption.

In the mid-twentieth century, the Brazilian federal government embarked upon an ambitious plan of fast-paced industrialisation aimed at responding to the growing needs of the country's ever more urbanised population. While the plan achieved rapid economic growth, rising levels of discontent defined much of the political behaviour of urban labour in the period. By critically examining some of the main events affecting industrial unions during the so-called ‘developmental decade’ of the 1950s, this article argues that amidst pervasive top-down economic transformations Brazilian workers consistently advanced an alternative position on national development. By investigating how metalworkers in São Paulo and Rio de Janeiro understood and responded to the main developmental trends and difficulties of the period, the paper reveals some of the creative strategies articulated by urban workers to promote a more socially inclusive path for the country. By becoming actively involved in ever more assertive cross-professional mobilisations, particularly those aimed at curbing the rising cost of living (a problem known as carestia), industrial workers not only protected their own economic interests but also significantly challenged the very bases of the populist political arrangements that defined post-war Brazilian society.