One of life's big mysteries

[sam3g]

Well, I think even meat has more than quadrupled since the devaluation; completely ridiculous in a country like this.

CasanCrem 8 pesos +

I always am amazed at how much the CasaCrem costs here. Rediculo!

 

[BSS]

Well, I think even meat has more than quadrupled since the devaluation; completely ridiculous in a country like this.

CasanCrem 8 pesos +

And the unexplainable rise in prices: yerba mate 9 pesos a kilo! That's a 5-fold increase. (It's not like they can even export much of it).

According to one economist I talked to, prices go up because people have money in their pocket (because they don't want to put in a bank).

Regardless, salaries haven't gone up 400% for most people. It's all a total shame and a crime which should at least make this government take on unchecked capitalism.

Actually, capitalism isn't out of control here, it barely exists in any recognizable form. The federal government does nothing but "take on" prices. The federal government has frozen metropolitan gas prices for ten years (Metrogas declared bankruptcy last year), water and electricity rates are up to 3/4ths lower than neighboring countries and all producers receive subsidies. The entire transportation infrastructure, from Subte and buses to airlines and toll roads have price controls and the companies are subsidized. So are the overwhelming majority of foodstuffs, infrastructure companies and industrial exporters.

I'm not going to take a position on whether this intervention is positive or not, it doesn't really matter because Argentines support it, but you can't possibly say that the government doesn't keep prices low for you. Oh, and the federal government recently announced price controls on yerba.

 

[JoeBlow]

I think it's helpful to simplify things by separating real food supplies scotch from processed foods.

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[JoeBlow]

Actually, capitalism isn't out of control here, it barely exists in any recognizable form. The federal government does nothing but "take on" prices. The federal government has frozen metropolitan gas prices for ten years (Metrogas declared bankruptcy last year), water and electricity rates are up to 3/4ths lower than neighboring countries and all producers receive subsidies. The entire transportation infrastructure, from Subte and buses to airlines and toll roads have price controls and the companies are subsidized. So are the overwhelming majority of foodstuffs, infrastructure companies and industrial exporters.

I'm not going to take a position on whether this intervention is positive or not, it doesn't really matter because Argentines support it, but you can't possibly say that the government doesn't keep prices low for you. Oh, and the federal government recently announced price controls on yerba.

You forgot to add that the cost of a public-phone phone call has also been the same for 18 years.

I don't really buy that electricty rates are 3/4 lower here than in neighboring countries in terms of real earned salary--I've read my electricity bill, too--but it is possible.

Regardless, my post was originally about food, not subsidized utilities and transportation. And, in that regard, I CAN say that the government hasn't been keeping food prices low (because, in fact, they're not low relative to the US).

Finally, irregardless of whether there are government price controls, capitalism is exactly what rules in Argentina according to my Merriam Webster's dictionary:

CAPITALISM: a way of organizing an economy so that the things that are used to make and transport products (such as land, oil, factories, ships, etc.) are owned by individual people and companies rather than by the government

http://www.learnersdictionary.com/search/capitalism

PS I know irregardless is not in the dictionary, but I still like the way it rings

 

[gouchobob]

What's the mystery, what we are talking about is inflation. What causes inflation? The textbook definition is that when the money supply grows faster than the underlying economy inflation will result. Who controls the growth in the money supply? The government. Has the money supply been increasing in Argentina? Yes and dramatically as the link below indicates.

http://www.bloomberg.com/news/2010-...oney-supply-growth-target-ambito-reports.html

Mystery solved.

 

[JoeBlow]

What's the mystery?

The mystery is why we, as a society, force 60% of the people to live hand-to-mouth--even in the so-called first-world countries. The mystery is why should 40% of the people have problems buying foodstuffs in this country when there is more than enough food for everybody.

I know these weren't explicitly part of my original question, but I figured some people would read between the lines.

 

[gouchobob]

The mystery is why we, as a society, force 60% of the people to live hand-to-mouth--even in the so-called first-world countries. The mystery is why should 40% of the people have problems buying foodstuffs in this country when there is more than enough food for everybody.

I know these weren't explicitly part of my original question, but I figured some people would read between the lines.

I'm not sure what you mean by hand-to-mouth even in first world countries although some do but it certainly isn't 60%. In Argentina the problem is the result of inflation caused primarily by the folks in the Casa Rosada. The government here is pursuing a growth at any price policy they want to get re-elected. What's happening is high inflation as a result. People on the lower economic levels earnings can't keep up with inflation and the percentage of income they must spend on food keeps increasing. The governments efforts on controlling prices on many items simply reduces supply over time and results in much higher inflation than would have occurred if they had done nothing. Instead of the extensive web of subsidies and price controls they would have been much better off just giving money targeted directly to low income families not that this doesn't have problems as well. The current policies are only making the number of poor people increase.

 

[JoeBlow]

I'm not sure what you mean by hand-to-mouth even in first world countries although some do but it certainly isn't 60%. In Argentina the problem is the result of inflation caused primarily by the folks in the Casa Rosada. The government here is pursuing a growth at any price policy they want to get re-elected. What's happening is high inflation as a result. People on the lower economic levels earnings can't keep up with inflation and the percentage of income they must spend on food keeps increasing. The governments efforts on controlling prices on many items simply reduces supply over time and results in much higher inflation than would have occurred if they had done nothing. Instead of the extensive web of subsidies and price controls they would have been much better off just giving money targeted directly to low income families not that this doesn't have problems as well. The current policies are only making the number of poor people increase.

I don't really have any idea if what you are saying is accurate, but thanks for taking the time to write and give food for thought.

 

[BSS]

The mystery is why we, as a society, force 60% of the people to live hand-to-mouth--even in the so-called first-world countries. The mystery is why should 40% of the people have problems buying foodstuffs in this country when there is more than enough food for everybody.

I know these weren't explicitly part of my original question, but I figured some people would read between the lines.

I smell what you're cooking, but I have to disagree about who's responsibility it is. The responsibility lies primarily with you and I, not the federal government. If we aren't satisfied with what we see around us, then we need to make a serious effort to help. Almost every villa has a communal kitchen that accepts food donations, as does the food bank of Buenos Aires. And in the long term, unemployed/underemployed people need our support, not our pity or charity. Programar and CIIPEC do great things here in BSAS and I'm sure there are a bunch or orgs we don't even know about.

It's morally and intellectually lazy to let a government or larger group do what you know you should be doing. As someone who fails to live up to their own moral standards every day, I completely get you. We all need to do more. Thanks for the post!

 

[JoeBlow]

I smell what you're cooking, but I have to disagree about who's responsibility it is. The responsibility lies primarily with you and I, not the federal government. If we aren't satisfied with what we see around us, then we need to make a serious effort to help. Almost every villa has a communal kitchen that accepts food donations, as does the food bank of Buenos Aires. And in the long term, unemployed/underemployed people need our support, not our pity or charity. Programar and CIIPEC do great things here in BSAS and I'm sure there are a bunch or orgs we don't even know about.

It's morally and intellectually lazy to let a government or larger group do what you know you should be doing. As someone who fails to live up to their own moral standards every day, I completely get you. We all need to do more. Thanks for the post!

Well, I compltely disagree again. I think the primary function of a government should be to take care of its citizens.

I'm not sure why you mention that every villa has a soup kitchen and then say unemployed people need our suport; that seems contradictory, but perhpas it isn't. My question to you is why should it be up to people to help other people and not the government? I volunteer at two places and thinnk the government should do more.

Are you a troll?