A Society That Doesn't Want Sacrifices?

[Noesdeayer]

This is the question asked on today's La Nacion Opinion page by Ricardo Esteves.It is something that I,personally,have always believed has been the root cause of Argentina's incapability of getting out of the economic depression it has been in for decades.Esteves capsulizes some of the factors that contribute to this loss of business cost effectiveness :
1) A non-competitive exchange rate
2) Excessive labor costs and lack of productivity
3) Obsolete infrastucture with lack of investment
4) A intense bureaucratic maze
Of course, these factors have been well known for some time.What I would like to point out,however,is that it has been basically the empresarial strata itself in conjunction with mostly Peronist governments that generate most ,if not all of them.for protectionist purposes and fear of foreign competetion..Working people have always made the greatest sacrifices in this situation.The monied strata who have access to hard currency have generally escaped unscathed.
Change must come from above.Those who are in the driver's seat ought to be the first ones to give the example.They should be as Peron said," El primer descamisado y sacrificado"

 

[Ries]

I would agree with 3 out of 4- I dont, however, think Argentine labor costs are extreme.
Most Argentines I know get paid very little- I know several university professors, at UBA, for example, who could not live without either a gainfully employed spouse, or a second full time job.

The frictional costs of the economy are what make things so expensive, in my mind- many of which are governmentally imposed or backstopped.

I know several young Argentines who have started businesses, and design, manufacture, and export, and their products are extremely competitive on the world market, but the bureaucratic hurdles to export are very tough to overcome.

Given easy access to the world markets, thru reasonable government support (as opposed to restraint) many Argentine products, at current labor costs, would do quite well.

I do agree, though, change must come from above.

 

[glasgowjohn]

I would agree with 3 out of 4- I dont, however, think Argentine labor costs are extreme.
Most Argentines I know get paid very little- I know several university professors, at UBA, for example, who could not live without either a gainfully employed spouse, or a second full time job.

The frictional costs of the economy are what make things so expensive, in my mind- many of which are governmentally imposed or backstopped.

I know several young Argentines who have started businesses, and design, manufacture, and export, and their products are extremely competitive on the world market, but the bureaucratic hurdles to export are very tough to overcome.

Given easy access to the world markets, thru reasonable government support (as opposed to restraint) many Argentine products, at current labor costs, would do quite well.

I do agree, though, change must come from above.

Extreme labor costs do not necessarily mean high salaries.

Ask any company what it costs ( salary , pension , unemployment contributions , various taxes , obra social etc) to have a person employed here and how it compares to other cities in the world and you will find that Bs As is the most expensive.

 

[Rich One]

Extreme labor costs do not necessarily mean high salaries.

Ask any company what it costs ( salary , pension , unemployment contributions , various taxes , obra social etc) to have a person employed here and how it compares to other cities in the world and you will find that Bs As is the most expensive.

Extreme labor costs do not necessarily mean high salaries.

Ask any company what it costs ( salary , pension , unemployment contributions , various taxes , obra social etc) to have a person employed here and how it compares to other cities in the world and you will find that Bs As is the most expensive.

CORRECT my head Portero make $30,000 pesos or US$2000 ....!! he's worked for 27 years..!! to get rid of him need to pay him US$ 648,000..! Don't have the Cash...!!

We have 3 concierges , 24 hour security plus 2 cleaning people , 2 x 8 hour shifts

Their salaries plus benefits constitute 80 % of the Expensas

 

[estebandepraga]

Yes , the costs of having an employee en blanco is very high in Argentina! Time to outsource to Albania and bring them to BA! They are happy with $200usd per month( Of course I am kidding but the salary is not a joke..a tough reality there!)
There were North Koreans working here in sweat shops(yes they exists here ,too) and got some $75 usd monthly and had to send almost all back to the great leader in Pyongyang!

 

[UK Man]

Good article but I do get the feeling the majority of Argentines have a live for the day to hell with tomorrow attitude. Which can be refreshing but doesn't bode too well for the longer term.

I think the next few years will be interesting and for us personally will decide whether we stay or go.

 

[mulderfox]

This is the question asked on today's La Nacion Opinion page by Ricardo Esteves.It is something that I,personally,have always believed has been the root cause of Argentina's incapability of getting out of the economic depression it has been in for decades.Esteves capsulizes some of the factors that contribute to this loss of business cost effectiveness :
1) A non-competitive exchange rate
2) Excessive labor costs and lack of productivity
3) Obsolete infrastucture with lack of investment
4) A intense bureaucratic maze
Of course, these factors have been well known for some time.What I would like to point out,however,is that it has been basically the empresarial strata itself in conjunction with mostly Peronist governments that generate most ,if not all of them.for protectionist purposes and fear of foreign competetion..Working people have always made the greatest sacrifices in this situation.The monied strata who have access to hard currency have generally escaped unscathed.
Change must come from above.Those who are in the driver's seat ought to be the first ones to give the example.They should be as Peron said," El primer descamisado y sacrificado"

are they ever? anywhere really?. its not how the world works. remember the bailouts of AIG and others, executives getting millons in bonus payments while unemployment was on the rise and people were getting fired.
its a law of the jungle thing, the lions gets better treatment than the zebra because they are higher in the food chain.

 

[Crema Americana]

Argentines have made a lot of sacrifices. Unwillingly, and unknowingly perhaps, but they do put up with a lot that would be unacceptable in other parts of the world. As do the rest of us that live here.

Once an individual (or a society) learns the way of cutting-corners, cheating, and living for today, it is very hard to get back without some drastic changes. And I certainly wouldn't hold my breath for big-business to do the right thing and set some type of example. It's the government's job to protect the people and create an environment where everyone can work and succeed. Of course when big-business and the government are in bed together, the people lose.

I'm still not sure about this administration. Apparently the current Minister of Energy was president of Shell Argentina up until last year. While Cristina was terrible and driving the country off a cliff while stealing out of the cookie jar with both hands, Macri's form of stealing may be legal and much more detrimental. We will see where he takes things, but helping large corporations at the cost of the common man and small business could be just as devastating. Hopefully he does more for the middle class - so far I'm not impressed with the tarifazo and that inflation is still high.

I think what Argentina really lacks is strong leadership with integrity - which seems to be a global problem these days. Everyone wants the easy fix and familiar name.

 

[Rich One]

Hundreds of people congregated in Plaza de Mayo to receive a FREE Apple....! some travelled 100 miles or more!! There was one Apple per person...!! Reminiscence of The Food Lines during the 1929 Great Depression ...??

The fruit producers in Rio Negro receive only 20 % of the fruit sales price at the Fruteria shop...?? 80 % is taken by middlemen and transport, taxes, etc. Is this a unique situation ? No in France where the Agricultural sector is in crisis the farmers receive only 18,7 % of the revenues....?

What can ONE do...??

 

[gracielle]

As consumers, locals can boycott the purchase of apples in support of the growers until ????? Sorry, forgot for a minute..... we are in ARG!