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.
KEYWORDS:
Business cycle; privatization; state reform