It's Too Expensive Here!

[fcoulombe]

Buy the Burger only.....!!

sure, I was just trying to demonstrate how the big mac index is flawed in argentina. (not debating on my order)

 

[Somewhereinba]

Somehow Argentines manage to survive - most people I know are struggling to get salary increases that match inflation.. Yet they keep moving forward and buying stuff - no idea how.. Possibly assistance from their parents who have money.

 

[camberiu]

Somehow Argentines manage to survive - most people I know are struggling to get salary increases that match inflation.. Yet they keep moving forward and buying stuff - no idea how.. Possibly assistance from their parents who have money.

No point in saving, if your currency loses value by the day.

But no savings, means no capital for investment and economic growth. So with no savings to tap in order to finance investments, the government relies on printing currency in order to finance what little investment it can make. The more it prints, the less the people save. Rinse and repeat.

This is a downward spiral that is very difficult to break off. Argentina continues on its very gradual but inexorable decadence. Without bold and radical structural reforms, there is no way out.

 

[garryl]

Alright guys, the cost of living in Argentina is clearly higher in pesos, compared with itself. However, this is the case for almost every other country. In California, except for gas, everything is more expensive, supermarkets and restaurants, and the rent has gone up by 50% to 100%. A one bedroom/studio apartment outside San Francisco can be $2000+. People pay 3000-4000 on their monthly rent in SF is average, which was not the case before. Many young lawyers and doctors and other professionals, unless they own, live from paycheck to paycheck. And they can't afford to buy a house unless they can make extra from stock options or parent give them a few hundred k down payment, life is good but not easy.

Due to the inflation or other factors, the younger people always make a lot more than the older generations on the average. The only way, for the older people to stay in the game (not running out of money before dead) is to have investment, real estate holding/rent is one of good vehicles for average people. If you have a lot more $, then you have more options. If you just have your $ in saving account, the inflation will outrun you. After a few years, everything looks more expensive. it's a game between the retirees and government, to see who can generate more paper bills, usually the government wins unless your last name is Buffett or Clinton.

 

[Noesdeayer]

Camberiu:
VG explanation of the disastrous effects of high inflation an an economy.
I beg to disagree that this latest bout is a continuation of Argentina's "very gradual but inexorable decadence"
the hole the Kirchneristas dug for the country's economy was very deep.Let's talk again in about 6 months.
Let's see how much $$$ comes back in the whitewash and the beginning of the economy's turnaround.
Timing is a key element in this "break off"..There's little need for gasping for breath yet.

 

[ElQueso]

Alright guys, the cost of living in Argentina is clearly higher in pesos, compared with itself. However, this is the case for almost every other country. In California, except for gas, everything is more expensive, supermarkets and restaurants, and the rent has gone up by 50% to 100%. A one bedroom/studio apartment outside San Francisco can be $2000+. People pay 3000-4000 on their monthly rent in SF is average, which was not the case before. Many young lawyers and doctors and other professionals, unless they own, live from paycheck to paycheck. And they can't afford to buy a house unless they can make extra from stock options or parent give them a few hundred k down payment, life is good but not easy.

Due to the inflation or other factors, the younger people always make a lot more than the older generations on the average. The only way, for the older people to stay in the game (not running out of money before dead) is to have investment, real estate holding/rent is one of good vehicles for average people. If you have a lot more $, then you have more options. If you just have your $ in saving account, the inflation will outrun you. After a few years, everything looks more expensive. it's a game between the retirees and government, to see who can generate more paper bills, usually the government wins unless your last name is Buffett or Clinton.

To compare the rest of the US to California, or even more specifically, San Francisco, is not the same as comparing Buenos Aires to Argentina (where at least 1/4 of the country's population lives or more when talking about the whole province), nor Argentine prices to US prices.

California has been more expensive in a lot of things, at least in San Francisco (and I believe Los Angeles), than the rest of the country. I can remember my ex-mother-in-law lived in a small house in San Jose of about 1300 sf, the same sized house that I lived in in Houston at the time, in the 80s. Her house cost on the order of $800K while mine cost $36K. One would have to wonder if the difference of living in San Jose vs Houston was worth that kind of difference...

Things in places like Houston, or Austin, or St Louis (places where I know people and keep in regular contact with them) are not as good as they used to be, for sure, but are not as bad as things are here, nor, apparently in California When I measure cost increases on items I'm sure about here, including things like school (now both colegio and universidad), clothes and food, there is no doubt that the real increase in USD has gone up significantly on most things, not just the price in pesos and that it costs more to live here than it does where I know people who live in the States, and outside of never-never-land places like northern California

 

[fcoulombe]

yeah i don't think you can grab san francisco as an example of what's going on in the world although it is an interesting pocket of society.

i found some decent air bnb in SF for 2400$ (obviously it's not the same when you have a family).
also, it's probably worth mentioning that a junior software engineer in the bay area demands 120k$/year (before taxes).
that gives you an idea of how stupidly high the salaries are over there if you're lucky enough to be working in the tech industry (sucks to be a waiter though...).

I was living in los angeles back in 2011 and managed to get a pretty good appartment for 800$/month and i was just looking in lake tahoe and it's no where as bad as SF.
so i don't think what's going on in the bay area represents even the rest of california and even less the rest of USA

the cost of housing is going up globally but i believe that's appart from the price of goods.
there's this weird phenomenon where people buy houses not to live in it but as an investment. If you look correctly, the price of housing is not in sync with the GDP. as in, the people are getting poorer but the price is going up. (makes no economical sense.... or does it?)

 

[citygirl]

Salary in San Fran = much, much higher. And let's face it - if I were living 30minutes outside of San Fran (like I do out of BA), I prob wouldn't live on a dirt road, rely on a generator multiple times a year b/c of power outages, get regular garbage pickup, have internet a bit faster than 1 MB, not have my car break b/c of the giant freaking holes in the roads, not have people burning stolen cars outside of my property, etc, etc. Probably not the best comparison

My N1 - I go to the US to shop. I pay less there than I do here. By a lot. Yes, I could pay a gazillion dollars to eat at a top restaurant in NYC when I'm back and of course, BsAs would look cheap in comparison. But outside of high cost areas, we spend less on clothes, food, etc there than we do here.

 

[fcoulombe]

but maybe we should also talk about adults forced to pay 1500$ to live 20 people in the same house just to live nearby the San Fran action.
not sure which argentine does this around here...

 

[Noesdeayer]

citygirl.
I'm right with you on the clothes shopping .The only times I've bought Argentine mens clothing has been the years (in the 38 I've been here) that I couldn't make my yearly trip to NYC.You want to buy some stuff here but the quality for price is just not there and things simply do not last long enough.
Lita de Lazzari who years ago was the Argie equivalent of "My momma told me,you better shop around". used to tell houswives and others,"Camine señora.Camine y busque precio"..Yeah,right! You can comparision shop all you want here but the quality and workmanship just isn't there".