In Argentina, locals are taking loans to buy food

[MilHojas]

In Argentina, locals are taking loans to buy food

Argentinians are taking on loans, selling their belongings, and living on credit cards to pay for basics including food.

www.aljazeera.com

 

[ksm76]

Woops dont show this to all the menem 2.0 lovers here. They think Argentina is exceptional and can do no wrong nor has ever.

 

[SlowWalker]

Woops dont show this to all the menem 2.0 lovers here. They think Argentina is exceptional and can do no wrong nor has ever.

I'm not sure what you are referring to.
I don't think anyone here is happy with the unfortunate situation going on for people.
But do you think 80+ years of governments borrowing and either defaulting or printing can be reversed without some tough times?

It is notable that in the article it is saying that nearly half the population is using savings, selling things, using loans etc.
Let us compare that with North America. People may be house rich and cash poor or not house rich at all. As a society they typically live on debt, through primary and secondary mortgages, home equity line of credits, pay day loans, etc. It is reported that in the US about 1/3 of the population does not have any emergency funds, and that up to 63% of the population may not be able to cover a $500 emergency. People cannot strike or protest for fear of losing their job and medical insurance.

In Canada, when interest rates rose after the pandemic, many people had to go to family members for loans, or start working additional jobs, or pick up shifts on Uber etc. About 5% of Canadians now rely on food banks varying regionally. 1 Million in Ontario, 1 in 10 in Toronto. Even Alberta has seen the greatest increase in year over year. The cost of living crisis in Canada has spilled over to significant feelings against immigration.

Have you noticed the quota system, using credit to buy small purchases, becoming quite popular in North America since the pandemic? Buy now pay later, or split into 4 payments with no interest but if you do miss a payment there are big charges. Canadian Tire offers 24 interest free payments on purchases over $150. North American society has been getting comfortable with the quota system for about 5 years.

So Argentina is not alone in this. There are tough times globally. Though I think for many it is surprising that they do have savings to draw on compared to significant portions of the population in first world countries. What it does look like though, is that Argentina is taking it seriously, has implemented austerity measures, is running a federal surplus, meeting foreign debt obligations, has reduced the country risk (increased support and believe in the country by foreign creditors) whereas other countries (and historically Argentina) seem to be hoping to continue to print and spend their way out of the current situation and kick that can further.

No one here is celebrating the stress, pain, hunger and misfortune many are experiencing. But some of us, along with quite a bit of the population (based off electroral results) have hope in the measures being taken and the path the country is that they will right the ship.

 

[ksm76]

Letting food prices soar, especially for the majority of the population, yet incomes aren't keeping up is a disaster and a Shame on Menem 2.0.

Same as its always been. The middle class and poor suffer to fix the damage the corrupt and rich caused. Isn't that nice.

 

[SlowWalker]

Letting food prices soar, especially for the majority of the population, yet incomes aren't keeping up is a disaster and a Shame on Menem 2.0.

Same as its always been. The middle class and poor suffer to fix the damage the corrupt and rich caused. Isn't that nice.

And around the world?
Is it really shocking that inflation hits people without physical/hard assets hardest?

What food prices are soaring? Beef prices increased because of increased export.
The adjustments in pricing shows a healthy market functioning as opposed to subsidized food costs.
Eggs, chicken, pork, flour, sugar, etc has pretty much been the same price for months where I am.

And the article only mentions inflation higher than wages increasing, which is typical. Here they have salary adjustments, so practically it has to lag against CPI. In what other countries do you see regular salary adjustments?

 

[ksm76]

And around the world?
Is it really shocking that inflation hits people without physical/hard assets hardest?

What food prices are soaring? Beef prices increased because of increased export.
The adjustments in pricing shows a healthy market functioning as opposed to subsidized food costs.
Eggs, chicken, pork, flour, sugar, etc has pretty much been the same price for months where I am.

And the article only mentions inflation higher than wages increasing, which is typical. Here they have salary adjustments, so practically it has to lag against CPI. In what other countries do you see regular salary adjustments?

You have zero empathy for the suffering. You talk like a corporate goon.Im talking about Argentina not the world. There needs to be social safety nets for these people and should be paid for by the rich. Point blank. You are despicable.

Menem 2.0 is to blame of course.

 

[SlowWalker]

You have zero empathy for the suffering. You talk like a corporate goon.Im talking about Argentina not the world. There needs to be social safety net for these people and should be paid for by the rich. Pont blank. You are despicable.

You have completely ignored my previous post.
You are attributing feelings to which I have clearly stated are not my own or others in the previous posts.
You are not providing any opposing points to debate fact.
You are just attacking the person instead of ideas.

I can spend time to respond to your other posts in the other thread, but what is the point.
You are not participating in good faith.

Stating a fact that inflation hits those without hard assets is fact. Nothing to be happy or sad about. You claim to be in finance so you understand this.
What is a social safety net? What are the details? How is it funded?
The wealthy pay taxes here and asset taxes. Many have also left the country or operate in the country and short term basis and are domiciled in Uruguay. To keep on taxing "the rich" isn't functional. There are many Argentinians that are professionals that do well, but are not super wealthy and are paying every tax but the framework makes it very hard for them to prosper.
I believe earnings under 2.5M pesos per month don't pay tax because of credits.
You have 45% of the population that runs informally and more that jokes about not paying or paying reduced taxes.
So the same people that don't want to be in the system even if they wouldn't be paying tax also demand services from the system.

Provide a framework for something more sustainable instead of attacking people.
Peoples diets have changed from beef to eggs, chicken and pork. This is a healthy response and indicates a functioning market.
I have asked you to provide examples what food is soaring because the article doesn't provide data and my personal observations indicate otherwise. Yes inflation outpaces salaries, that is fairly typical worldwide. You have failed to provide examples to counter that.
People using credit is not awful. That is how the rest of the world functions. And as this government continues to proceed on its path and gain back the trust of foreign creditors, the country can eventually return to running a slight deficit funded by debt like every other country. But first they need to gain the trust that they will be able to finance it and not default.

Provide some ideas. It is clear that previous governments didn't succeed when they had double digit monthly inflation. How was that any better?

 

[on the brink]

You have completely ignored my previous post.
You are attributing feelings to which I have clearly stated are not my own or others in the previous posts.
You are not providing any opposing points to debate fact.
You are just attacking the person instead of ideas.

Don't waste your breath trying to reason with a bumper sticker "mind" - just empty slogans, prejudices, and personal attacks. No intelligent thought behind them.

Let such posters vent their spleen as needed.

 

[Johnny]

Don't waste your breath trying to reason with a bumper sticker "mind" - just empty slogans, prejudices, and personal attacks. No intelligent thought behind them.

Let such posters vent their spleen as needed.

The guy is nothing more than a troll. Don't feed.