Galloping Inflation 2

[sergio]

Yes, CABJ public transport will remain inexpensive for expats (though not so for most Porteños who earn very low salaries). Public transport receives major subsidies. The cost of buying and maintaining a car, domestic air fares etc are far from cheap.

 

[CABJ]

I don´t need a car in Argentina and if you worry about domestic airfares get a DNI, I on the other hand prefer to spend my money abroad

 

[ReemsterCARP]

Problem is that it's not just public transport, it's health care, gas, food, everything. And if you're not working in a unionized sector, your raise won't be in accordance with the new price level. If you're earning in pesos you're screwed.
I couldn't care less about the people earning in € or US$. Most of the expats live in fancy neighbourhoods and will only have to cut down on luxury. Some Argentine friends of mine are actually cutting down on basics...
In the past half year almost 450.000 people have fallen below the poverty line according to La Nación.

 

[CABJ]

Problem is that it's not just public transport, it's health care, gas, food, everything. And if you're not working in a unionized sector, your raise won't be in accordance with the new price level. If you're earning in pesos you're screwed.
I couldn't care less about the people earning in € or US$. Most of the expats live in fancy neighbourhoods and will only have to cut down on luxury. Some Argentine friends of mine are actually cutting down on basics...
In the past half year almost 450.000 people have fallen below the poverty line according to La Nación.

Anybody who does not see that purchasing power of almost all Argentines is dropping fast is blind, but that does not stop ex-pats to leave if they don´t like it

 

[CABJ]

Inflation will only go away if all (semi) public services are offered at cost-price but then expats would whine even more and all leave(see SP a few years ago)
I would actually applaud it because it would be good for investment, job oportunities and fighting of poverty if funds are managed well

 

[ReemsterCARP]

That's true, but as I stated before: I care more about the Argentines than the expats. Most of the Argentines have no 'exit' strategy (unless they have a EU or other foreign passport).

 

[CABJ]

It would not be bad for Argentines, just for the lazy ones

 

[ReemsterCARP]

It's a dilemma...
Offering public services at cost-price would exclude vast portions of the Argentine people. Not just the lazy. Offering gas at the cost-price would mean that 60% won't be able to pay their gasbill anymore.
Or public transport for example. If you're a middle class argentine, making 10 pesos per hour, you simply cannot afford 4 peso busfares, or if you commute 5-8 peso train tickets. This will eat up to 20% what people earn in a day.

 

[CABJ]

It's a dilemma...
Offering public services at cost-price would exclude vast portions of the Argentine people. Not just the lazy. Offering gas at the cost-price would mean that 60% won't be able to pay their gasbill anymore.
Or public transport for example. If you're a middle class argentine, making 10 pesos per hour, you simply cannot afford 4 peso busfares, or if you commute 5-8 peso train tickets. This will eat up to 20% what people earn in a day.

Salaries would go up, especially if you use the money to promote industries and services and come up with a long term vision for the country

 

[CABJ]

People at the country side pay about 3 times more for there gasbill then people in Puerto Madero, yet there are still people at the country-side.
It´s bogus that they can´t afford it´s just a very bad, money-eating political tool which others suffer from