Why aren't there more expats in Uruguay?

[Fiscal]

Why is Uruguay so expensive? Grocery stores and restaurants seem more expensive than the US.

 

[Neil]

Why is Uruguay so expensive? Grocery stores and restaurants seem more expensive than the US.

Probably because most goods are imported,little manufacturing in UY.

 

[FrankPintor]

Probably because most goods are imported,little manufacturing in UY.

I think there must be more to it than that, since much of the stuff sold in grocery stores and restaurants is not actually imported, and Uruguay is a major food producer. I've also wondered why Uruguay is so expensive for these products compared to, say, another free-market / free-exchange country like, say, Paraguay?

 

[Aztangogirl]

Uruguay is as expensive as the United States. And it is boring.

 

[Ries]

Uruguay has done all the stuff the right wing economists encourage Argentina to do- open imports to the global economy, cut social safety nets (compared to Argentina- they still do have em, though), allow a free currency exchange to exist, allow multinationals in with foreign ownership, etc.
And as a result, with basically the same geography, history, culture, ag products, etc, it costs double or triple.
Be careful what you wish for.
The rich tourists only come for two months, but the price increases and inflation they cause last year round.
Paraguay is hideously courrupt, with the Colorado party skimming an estimated 20% of the GDP.
I cant imagine anyplace who would like to emulate them.
Check out the resumes of the 3 frontrunners for President there- 1- right wing lifelong Colorado hack. 2- very slightly less right wing ex-Colorado hack. 3- Ultra right wing guy who got kicked out of Colorado for being too nuts in public even for them.
and the winner- the machine candidate, who didnt even have a chance of losing.
At least Uruguay is actually a democracy.

 

[Fiscal]

I think there must be more to it than that, since much of the stuff sold in grocery stores and restaurants is not actually imported, and Uruguay is a major food producer. I've also wondered why Uruguay is so expensive for these products compared to, say, another free-market / free-exchange country like, say, Paraguay?

Yes, I noticed grocery stores and restaurants are as expensive or more expensive than the US and Western Europe.

 

[Reply Guy]

Uruguay has done all the stuff the right wing economists encourage Argentina to do- open imports to the global economy, cut social safety nets (compared to Argentina- they still do have em, though), allow a free currency exchange to exist, allow multinationals in with foreign ownership, etc.
And as a result, with basically the same geography, history, culture, ag products, etc, it costs double or triple.
Be careful what you wish for.
The rich tourists only come for two months, but the price increases and inflation they cause last year round.
Paraguay is hideously courrupt, with the Colorado party skimming an estimated 20% of the GDP.
I cant imagine anyplace who would like to emulate them.
Check out the resumes of the 3 frontrunners for President there- 1- right wing lifelong Colorado hack. 2- very slightly less right wing ex-Colorado hack. 3- Ultra right wing guy who got kicked out of Colorado for being too nuts in public even for them.
and the winner- the machine candidate, who didnt even have a chance of losing.
At least Uruguay is actually a democracy.

Uruguay is far from right wing when it comes to their economic policy. It has a high tax burden. VAT is higher in Uruguay than Argentina. Top personal income rates are higher in Uruguay. They still have a pretty healthy welfare state.

They need to be more open to imports, they have a population of 2 million, not 40 million like Argentina or 200 million like Brazil.

Uruguay needs to import a lot of energy, whereas Argentina has nuclear, hydroelectric dams, oil, etc.

I do agree that foreigners drive up prices, especially on land and real estate.

----

Paraguay, you can't view in terms of right and left. It's a kleptocracy, they don't have an ideology. 1. Peña isn't even a lifelong Colorado as you state, he was part of the more "center" opposition party for 20 years before that. Now he's a proxy for Cartes to run his businesses unbothered.

 

[Fiscal]

Uruguay is far from right wing when it comes to their economic policy. It has a high tax burden. VAT is higher in Uruguay than Argentina. Top personal income rates are higher in Uruguay. They still have a pretty healthy welfare state.

They need to be more open to imports, they have a population of 2 million, not 40 million like Argentina or 200 million like Brazil.

Uruguay needs to import a lot of energy, whereas Argentina has nuclear, hydroelectric dams, oil, etc.

I do agree that foreigners drive up prices, especially on land and real estate.

----

Paraguay, you can't view in terms of right and left. It's a kleptocracy, they don't have an ideology. 1. Peña isn't even a lifelong Colorado as you state, he was part of the more "center" opposition party for 20 years before that. Now he's a proxy for Cartes to run his businesses unbothered.

Land and houses seem a lot cheaper in Uruguay vs Argentina. I looked at some homes and deptos around José Ignacio and the little towns in between there and Punta del Este and was pleasantly surprised. However food is so expensive. Dinner for two at a mediocre restaurant is $150.

 

[sts7049]

Uruguay has done all the stuff the right wing economists encourage Argentina to do- open imports to the global economy, cut social safety nets (compared to Argentina- they still do have em, though), allow a free currency exchange to exist, allow multinationals in with foreign ownership, etc.
And as a result, with basically the same geography, history, culture, ag products, etc, it costs double or triple.
Be careful what you wish for.

gee, all such terrible qualities you listed there.

 

[antipodean]

gee, all such terrible qualities you listed there.

Europe/ Australia/ New Zealand/ Israel/ Japan/ Canada etc should be ashamed of themselves for allowing their model of social welfare existing alongside a free market economy to spread to South America!

Anyway Uruguay, like most small developed countries, is expensive because it is a small market with a small workforce. It doesn't buy or move enough to achieve the cost efficiencies that a larger economy can and for this reason lacks sufficient competition to encourage lower costs in all sectors of the economy. You will see similar high costs in say New Zealand, Israel, Iceland, Norway etc - the price of (up and coming?) success for a small player, perhaps.

Here we simply lack competition because of corruption and the century(s) old mafia-state that is Argentina where a handful of local empresarios literally own everything and use their "influence" to get the state to chase away all meaningful competition and snap up the bounty they leave behind in the name of la patria. Yet regardless of how expensive Uruguay is by comparison, every Argentine or business with a local income (except the biggest of the big) already complain about costs here being astronomical in comparison to their incomes... so yeah, be careful what you wish for.