Argentina's inflation makes the NY Times front page

[Greg S]

The statistics tell a different story. That doesn’t mean poverty isn’t a problem in the US. However the rate in the US is well below that of Argentina and other than an understandable pickup during the pandemic, it has generally been falling. It’s also disingenuous to compare social classes between the countries. While I’m not here to make light of the tragic circumstances that someone in poverty in the US experiences, being poor in Argentina is drastically worse than in the US. In theory the poor in Argentina would have access to social services that people in the US might not, lightening the burden in Argentina compared to the US. However, given the fundamentally dysfunctional nature of Argentina, the US social safety net is significantly more robust than the Argentine (again talking about in practice - not intentions/in theory)

Poor Argentines need to get organized and head to the USA, the Eternal Golden Land o' Plenty. Surely everyone in the USA is now aware of the nightmarish inflationary hellhole Argentina is. I read it in the New York Times! Just rush the border in Tijuana. There's nothing they can do to stop you.

 

[Ries]

I still say the article was written by somebody who was clueless about the Argentine economy.
They were amazed at how thick a stack of hundreds is- and, no way were they right about how big a wad a million dollars is.
They were completely clueless that the dollar denominated real estate market goes back decades, most likely longer than they have been alive.
They are unaware of the difference between actual inflation, which obvio exists and is a big part of the problem,
vs
global commodity and grain pricing, and its influence by pandemics, wars, and supply chain issues, and Argentina's excessive tilt towards commodity exports
vs
exchange rate swings, whereby a strong US dollar makes things more expensive in Argentina.

Not even to get into the history of argentine protectionism, tariffs and taxes, the way the 3 way deal was made between the Syndicatos (labor) the wealthy (agrobusiness exports) and the government (taxes). This particular way of supporting an economy is pretty unique, and easily the subject of many many economics PHD dissertations, several dozen of which you would need to read to even begin to understand it.
The factors that cause prices to rise on some things, while staying stable on others, defies normal "inflatiion" explanations.
There is classical inflation in Argentina.
There is an unhealthy inverse relationship to the strength of the dollar.
There is a state controlled wage and price situation unlike what any Euro or US economist could dream of.
There are government subsidies on health care, education, utilities, foodstuffs, and other things that are unusual and expensive to the government, but allow for very cheap prices to poor people.
There is also the almost unique relationship between first world imported products, chinese crap smuggled in thru Paraguay, and Industria Argentina- its weird and convoluted and, again, follows no standard economic theories taught in Chicago.
I can buy shoes at 3 different price points- overpriced made in Vietnam Nikes, also overpriced chinese plastic junk, or Industria Argentina shoes that are actually, in either pesos or dollars, a pretty good value. Same thing for many different products- strange and nonsensical comparisons occur daily.

And there are still a 100 families, of which Cristina's is one, with incredible influence on all kinds of government policies, and many of which actively contradict each other.
The article didnt even scratch the surface of most of those issues.

And, most dissapointingly, it did not even mention the UGI pizza pricing formula that actually illustrates real inflation and cost of living issues better than any other.

Indice Ugi's: la inflación real, al ritmo de la pizza más popular de Buenos Aires

En los 90 costaba 1,99 pesos/dólares. Ahora, su muzzarella le ganó hasta al blue. Cómo fue aumentando, año a año.

www.clarin.com

 

[chris]

I still say the article was written by somebody who was clueless about the Argentine economy.
They were amazed at how thick a stack of hundreds is- and, no way were they right about how big a wad a million dollars is.
They were completely clueless that the dollar denominated real estate market goes back decades, most likely longer than they have been alive.
They are unaware of the difference between actual inflation, which obvio exists and is a big part of the problem,
vs
global commodity and grain pricing, and its influence by pandemics, wars, and supply chain issues, and Argentina's excessive tilt towards commodity exports
vs
exchange rate swings, whereby a strong US dollar makes things more expensive in Argentina.

Not even to get into the history of argentine protectionism, tariffs and taxes, the way the 3 way deal was made between the Syndicatos (labor) the wealthy (agrobusiness exports) and the government (taxes). This particular way of supporting an economy is pretty unique, and easily the subject of many many economics PHD dissertations, several dozen of which you would need to read to even begin to understand it.
The factors that cause prices to rise on some things, while staying stable on others, defies normal "inflatiion" explanations.
There is classical inflation in Argentina.
There is an unhealthy inverse relationship to the strength of the dollar.
There is a state controlled wage and price situation unlike what any Euro or US economist could dream of.
There are government subsidies on health care, education, utilities, foodstuffs, and other things that are unusual and expensive to the government, but allow for very cheap prices to poor people.
There is also the almost unique relationship between first world imported products, chinese crap smuggled in thru Paraguay, and Industria Argentina- its weird and convoluted and, again, follows no standard economic theories taught in Chicago.
I can buy shoes at 3 different price points- overpriced made in Vietnam Nikes, also overpriced chinese plastic junk, or Industria Argentina shoes that are actually, in either pesos or dollars, a pretty good value. Same thing for many different products- strange and nonsensical comparisons occur daily.

And there are still a 100 families, of which Cristina's is one, with incredible influence on all kinds of government policies, and many of which actively contradict each other.
The article didnt even scratch the surface of most of those issues.

And, most dissapointingly, it did not even mention the UGI pizza pricing formula that actually illustrates real inflation and cost of living issues better than any other.

Indice Ugi's: la inflación real, al ritmo de la pizza más popular de Buenos Aires

En los 90 costaba 1,99 pesos/dólares. Ahora, su muzzarella le ganó hasta al blue. Cómo fue aumentando, año a año.

www.clarin.com

It would be impossible to cover all those points in a newspaper article.

 

[Ries]

It would be impossible to cover all those points in a newspaper article.

And yet they touched on an equal number of "economic" points, incorrectly.
One of the authors is based in Rio, the other is the Argentina and Chile correspondent for the Economist.
She, at least, should be aware of some of these issues, and aware that Argentina has run on cash US hundred dollar bills for decades now.

 

[carride]

And yet they touched on an equal number of "economic" points, incorrectly.
One of the authors is based in Rio, the other is the Argentina and Chile correspondent for the Economist.
She, at least, should be aware of some of these issues, and aware that Argentina has run on cash US hundred dollar bills for decades now.

There is a third journalist mentioned at the end of the article as a contributor. I imagine the local guide. Independent in Buenos Aires for a number of years. I have seen her writing and collaborations a few times in past.