Galloping Inflation 2

[ReemsterCARP]

I think that offering some public services at cost-price is a parcial solution to the inflation problem. But there will have to be a transition period. Where the government slowly lowers their subsidies, combining them with tax cuts so they'll be able to cope with the rising costs.

 

[CABJ]

I think that offering some public services at cost-price is a parcial solution to the inflation problem. But there will have to be a transition period. Where the government slowly lowers their subsidies, combining them with tax cuts so they'll be able to cope with the rising costs.

Nobody said you need to change it yesterday, but every time a public service is increased it´s a good thing, not a bad thing
But somehow expat will find a way to cry at how expensive everything has become. Deal with it

 

[soulskier]

Martin...I was expecting someone to post about how reasonable the prices are here and how much worse it is in the US and how lucky everyone is to be here and not in the terrible USA.

I'll do the honors. The cost of living in Argentina is a fraction of what it is in my home state of California. Our gas and electric bill are both around US$30 a month (for 3 houses). Diesel gas is 50% of back home. Food in the supermarket is about 40% of back home. Auto and health insurance, for the same plan, would be substantially more.

 

[Stanexpat]

Basically, after 2001 you had a period where the country could appear to grow at a rapid rate. The growth was real but much of it was just getting back to where they were prior to the melt-down. There was a lot of unused capacity in the economy which could be brought online(without investment) with the growth. The inflation problems started when the unused capacity was used up and there was no new investments to expand capacity. The government added to this problem by greatly increasing spending, including subsidies for various purposes. Government policies here promoted growth without encouraging investment which is a sure way of creating shortages and inflation.

What should have been done was a gradual reduction of the various subsidies and policies that promoted investment (i.e. the falling subsidies could be offset by raising incomes and a growing economy).

What could be done today? Well as one or two people have mentioned the government still needs to begin reducing the subsidies and get control of their spending. This was the hope people had for Cristina's government if you remember from last year. The government should also get rid of some of the people in the government and make credible moves that would encourage investment( this would be hard to accomplish as the credibility of this government is totally shot). Unfortunately, none of this has happened to date, and most of the moves of this government seem to be in the opposite direction which will surely lead to higher inflation, more poverty, and in end a probable repeat of 2001.

Whatever you think, if they can't make this place work with record high prices for their agricultural products, what are they going to do when conditions are not as favorable?

Look for a lot more trouble ahead.

 

[cbphoto]

CLICK ON THIS LINK:

http://www.forbes.com/2008/07/23/cities-coffee-expensive-forbeslife-cx_zg_0724expensivecoffee.html?partner=yahoobuzz http://www.finfacts.ie/costofliving.htmCopy and paste the 2nd one
I hope this will quiet the whiners.... this has become such an old topic...

 

[allcraz]

cbphoto, I understand the point you are trying to make. But there are 2 groups of expats - those earning and spending pesos and those earning and/or spending a stronger currency. For the former group, the 2 links you provided can't stop any whining, because it's quite obvious that if you're paying $10 for a coffee in Moscow, and you're not a random Argentine vacationing in Russia, that you're most likely earning more than the average Argentine salary. So that group can't compare the BsAs cortado to Moscow's, and I don't think it was trying to do so in the first place. And for the latter group, I think most are aware that BsAs continues to be cheap compared to major destinations in the world, but that won't stop them from noticing inflation. Put the groups together and you will see a common denominator - no one enjoys realizing that they have less purchase power than before.

 

[cbphoto]

It's all about perspective..true. The thing that becomes tiring is the few on BAexpats that continue to whine and complain in such a biased fashion...full of anger, hatred, and prejudice...It is nice, for a change, that on this topic their has been some constructive criticism of those that would complain about the public transportation costs (about 10 times less than most other major cities in the world)...and also I appreciate the topic of subsidies, which are at the root of the Argentine economies inflation in the 1st place..As far as not being able to buy your foreign magazine, and 1 role of paper towels for 8 pesos (where I buy it is 3 roles for 3.69 pesos) ...this type of trivial misinformation is useless, except to feed the writers, or readers anger towards the place you "live".Again I know people need to "vent" their daily frustrations about traffic, inflation, thieves etc.... but it is counter productive to do so in the fashion so many have chosen... try to keep it real.

 

[soulskier]

Well said CBphoto. I wonder if some of our fellow expats would be happy anywhere they live?

 

[steveinbsas]

It's all about perspective..true. The thing that becomes tiring is the few on BAexpats that continue to whine and complain in such a biased fashion...full of anger, hatred, and prejudice...

Could you please cite some examples of "biased" complaints that are "...full of anger, hatred, and prejudice." I do read a great deal of "frustration" in those posts, but not the traits to which you refer. (Though one member who has seen the quality of his life here "sink like a stone" might be considered angry, its impossible to accurately "judge" his actual emotional response, isn't it?).

I, for one, have posted in detail about crime and how to avoid it, and I have been called a racist for implying a maid might steal from someone renting a temporary apartment. Until today, however, except for noting that my BA taxes increased threefold this year, and the cost of groceries has increased significantly in recent months, I haven't commented much on inflation. I arrived in BA a little over two years ago and been living on a "fixed" income which (then and now) just barely meets the requirements for the visa rentista. As you might expect, one factor which was important in mydecision to live here was the "cost of living" in BA. Since 2006, I have seen the cost of private heath care increase by well over 50% . The monthly expenses for my apartment have also doubled in the same time frame. Yes, utilities and public transportation costs have been absurdly low and the news rate will still be "reasonable" (though their subsidies contribute to overall inflation). I rarely use taxis, buses, or the subway, (though the taxi fare have also doubled since 2006).

I agree that government spending is the chief cause of inflation. Since I cannot vote in Argentina, it doesn't do much good for me to complain about it. However, I do think this forum is a great place for those who are considering "moving " here (often without ever having visited even once) to get some useful information about what they will encounter here.

 

[cbphoto]

I didn't single you out stevenbsas... why so defensive?I had mentioned that some on this site come off as very angry, and with prejudice...I would have to look back at some of what you have written to see if you fit this category.. but honestly, can't be bothered. This site is not about you or individuals in general.. my statement was merely directed at those that "twist" the truth... that see things from a very one sided negative perspective.. unwilling to find/listen to both sides... to find a place in the middle.. in hopes of finding real solutions/helping others to come to real conclusions about the state of affairs here...