Life in USA vs. Argentina

[soulskier]

Sergio, my wife's freelance writing career began with a couple online classes and a $59/year membership to an association that publishes jobs. She already had a computer, but she bought the latest Microsoft Word. Initial startup was probrably around US$500. One she started getting published and paid, she bought a really nice digital camera for another US$500.

For my property management business, start up was virtually nothing. In fact, the first I do for each new client is build a website, which pays me some. The rest is on commission.

We are also involved in an English only monthly newspaper in Patagonia, Black Sheep. There is no start up costs for us, we just invest time in writing articles and selling ad space (working on commission). The American owner has put out some money for initial printing costs, but that has been offset now that there are ad sales.

We are putting the finishing touches on a restaurant guide for the area. It will be a downloadable ebook costing about US$10. The initial cost was the US$90 ebook program. Since we like to eat out and try new places, I won't include those costs in the startup because we would have still gone to the different restaurants.

Those are 4 examples of little to no startup, many more exist for those who are saavy.

Danc, I agree ARG is no place to work your way up the company ladder. But for those willing to identify a need/niche, there are plenty of small businesses/1 person jobs to be created.

I also agree having employees can be a hassle. For our properties, we know sub out maintainence work to a great man named Martin. He either fixes the problem, or finds someone who does.

I totally agree that the labor law here favoring the employee. When we had our finca in Mendoza, we were sued by someone claiming to be our employee, but in reality he only did some small tasks around the property from time to time. The experience was eye opening and costly.

I don't see have many employees working for me in the future. But we have contributed to the local community and created jobs (new roof, septic tank, gardening, maid service, etc), many with the help of Martin.

 

[soulskier]

Steve, thanks for calling Stan out on his always negative toned posts. The positive thing I can say about Stan is Argentina didn't work for him, so he moved, which I applaud. Why he is still on the board bashing the country on a very regular basis is beyond me.

 

[Stanexpat]

Sorry if I have upset people but again I just stating fact. If you have a business there and it's a big success then congratulations. But I believe what I have said is factual. A hundred years the per capita income was the same as the U.S. today it's a fraction of the USA, obviously something went very wrong there.

Let me give a specific industry where things went wrong. Beef produced there has a worldwide following for its quality, its the first thing people think of when Argentina is mentioned. Back in the 60's Argentina had around 35% of the world export market. What's happened since? Argentina's market share is now down to around 5%. They have long been supplanted by Brazil as the leading S.A. exporter, tiny Uruguay now exports more beef than Argentina. What's the reason? In short lots of government interference which makes it hard to run a business there successfully.

If you look at the last 5 or 6 years the average Argentine's income has not kept up with inflation. People there are worse off then then they were 5 or 6 ago. The percentage of the population living in poverty is increasing as it has been doing so for decades. What's causing this? The answer is very bad governments(including the current one) making very bad decisions for a long period of time. They have managed to take a country that should be very successful and properous and turn it into an economic basket case.

What does the Argentine with money do? Most of them keep their money out of Argentina. In the last couple of months billions more have followed. The government annouced a new plan just this week to try to get people to bring some of this money back(I doubt they'll convince many). Why do people do this? They think Argentina is a poor place to invest and do not believe it is a safe place to keep their funds.

 

[bigbadwolf]

It's extremely hard to do business here....

For regular, conventional business, yes. As another poster has pointed out, one must have not only capital but real connections. But others here are making the point that they've found or created little niches for themselves, with small one-man service businesses. And this is plausible. But one would hesitate to say that ten thousand Americans could come here and do the same thing. The market can take only so many independent web designers, writers, and real-estate agents. And both conventional employment and conventional business are problematic in Argentina. But as someone else has pointed out, the US is on a downward spiral of its own -- and one for which we can see no end.

 

[steveinbsas]

But others here are making the point that they've found or created little niches for themselves, with small one-man service businesses. And this is plausible. But one would hesitate to say that ten thousand Americans could come here and do the same thing.

I may not be the only American who is doing exactly what I am doing to generate an income for myself while living in Argentina, but I am the only one that I know who is doing it. I would be happy to help anyone else who is interested, whether they are living here or just visiting for a couple weeks. They would need a little capital to invest in an Argentine product for export to the US. I have made a great connection here and there is far more business potential than I alone can possibly develop. I prefer to discuss the details in person and I do not ask for any payment.

 

[steveinbsas]

A hundred years (ago) the per capita income was the same as the U.S. today it's a fraction of the USA, obviously something went very wrong there.

Yes, indeed it did. Isn't it obvious what happened?

Hint: Study the philosophy which inspired the Bolshevik revolution.

Now the US has a president elect who embraces some of the same principles.

Be afraid. Be very afraid.

Whether you live in Argentina or the USA.

 

[sergio]

Steveinbsas, Are you suggesting that Obama is Marxist in his thinking?

 

[steveinbsas]

Obama is a collectivist. That's close enough.

 

[igor]

My guess is that 99% of the expats there are living on imported money. I doubt very few expats are making a real living by working or by starting businesses or other enterprises there. It's got to be one of the worse places in the world to try and do so.

Many things have a tendency to level themselves out after all. In business friendly places you have to face with high competition that makes it extremely difficult to make any money. In places where loans to buy an apartment are readily available and procedure is easy, real estate prices are higher. Everything is already included into the price.

Basically, you just resent that things in Argentina are not done in the same way as in the USA where you live. There is a russian proverb: "Nobody goes to another monastery with one's own charter" and I think it is fully applied here.

It is difficult to be an expat in any country. To be competitive you need to be better than locals. I doubt that any good oil-drilling engineer will have a problem finding job in Patagonia, but for many people being a native english speaker is about the only advantage and that determines the scope of their activities.

 

[soulskier]

Well said Igor!