Yet another paradox in the legacy of Vargas became manifest -- while before Nazi Germany had maintained a close connection with Brazil, helping to modernize the army and Brazil's industry, Vargas used his new, singular authority to turn to the United States for support. Brazil became an important supplier of raw materials to the U.S. during World War II, in exchange for American investments in Brazil's infrastructure. The U.S. helped build Brazil's first major highways, railroads, ports, and airports. This increased national prosperity and affection for Vargas. The new, government-controlled unions formed the core of his urban power base.
The United States' funding helped create Brazil's first steel mill, as well as factories that manufactured truck and airplane engines. This expanded urban employment possibilities and consolidated Vargas' power as all of these powerful enterprises were state-controlled, in contrast to the coffee exporting business that was dominated by landowners. Thus while he was not a democrat, the transformations Vargas enacted were both populist and popular, as well as in his own interest. His changes in the tax structure reformed Brazil and made it a modern nation-state, with local and state government dependant upon federal authorities rather than upon powerful local landowners and officials. For local elections, Vargas did try to enfranchise more Brazilians: the electorate was quadrupled under his regime, partially because of the enfranchisement of women. Girls now had...
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