Subway fares go up 127% percent tomorrow

[PhilipDT]

Right, like $200 million USD for essential programs like Fútbol para Todos. I do see your point, though, and supposedly, this is what CFK is doing. They're restructuring how the subsidies are spent.

Oh, and it seems that CFK will not be raising the ticket price (or eliminating the subsidy, as some may prefer ) for trains and colectivos.

Hmm go figure, she only does that if she can shift the political fall out onto her opponents.

Plus this was obviously a long time over due, a few years ago the subway was the cost of an empanada. Yesterday it was the cost of 1/4 of an empanada. Who's ever heard of a subway line that's expanding getting cheaper?

 

[Napoleon]

Oh, and it seems that CFK will not be raising the ticket price (or eliminating the subsidy, as some may prefer ) for trains and colectivos.

Hmmm.... could this be because trains and buses going outside the city limits? And thus she would be dumping the expense into the lap of the governor of Buenos Aires province as well? Nooooooo, that couldn't be it.

 

[solerboy]

Maybe the reduced spending power of the general public due to the reduction of subsidy in transport and utilities will reduce the money supply and help combat the rate of inflation. Much the way that Interest rate rises do on other economies ?

 

[marksoc]

the reduced spending power of the general public due to the reduction of subsidy in transport and utilities will reduce the money supply

Yo have your neocon politics wrong. Decrease of Demand =/= less money supply. And also, money supply does not cause "inflation", at least not alone. Witness the USA.

 

[solerboy]

Yo have your neocon politics wrong.

Who mentioned politics ?

Quote from Wikipedia

http://en.wikipedia.org/wiki/Contractionary_monetary_policy

"Monetary policy can be used to control inflation. Inflation is defined as continuing increases in price levels. Since price level is a monetary variable, monetary policy can affect it. Contractionary monetary policy has the effect of reducing inflation by reducing upward pressure on price levels.
Note that inflation can also be affected by fiscal policy. However, contractionary fiscal policy is often politically unpopular, because it involves spending cuts and tax increases. Thus, politicians favor the use of monetary policy to control inflation."

I would suggest that a reduction of transport and utility subsidy is in effect a fiscal policy equal to a tax incease or a spending cut.

 

[Napoleon]

I rode the subte twice today and each time paid the increased fee HOWEVER neither of those times was I given a complementary glass of champagne so I am quite disappointed!

But did someone still reach their hand into your front pocket?

Or have they done away with that too?

 

[solerboy]

But did someone still reach their hand into your front pocket?

Or have they done away with that too?

I normally have to pay extra for that service !

 

[Napoleon]

No...you still get the complementary reach around but never from anyone that you would want it from!

Maybe you're too picky.