Then And Now
- Thread starter camberiu
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ghost
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And that was at Kansas
When I first came here in 2006, the official exchange rate was about a gnat's ass less than 3-to-1 (sometimes a little above, sometimes a little below). Now it's about 8.94, roughly 1/3 the value in relation to the Dollar. And all of the calculations I provide below are at official rate, not blue.
In 2006 I could buy a movie ticket for about $10 pesos. Today, it's $90 pesos - or 3D at $100 pesos. Dollar equivalent went from about $3.3 to about $10 USD for a 2D movie, a bit more for a 3D movie. Roughly 300% increase against the Dollar value.
In 2007 I could buy a fully loaded cart, and about 1/3 to 1/2 of another, of groceries from Jumbo in Palermo for just less than $1000 pesos, maybe $950. Two days ago I went to Carrefour and bought one loaded cart for $3500 pesos. From about $315 USD to $391 USD. Roughly 25% increase against the dollar - and that does not include the difference in quantities I mentioned in the first part of the paragraph. It is most likely at least 40% increase against the dollar, considering that I was buying somewhere around 40% more in 2007 than the 25% figure indicates (I'm too lazy at the moment to do an extrapolation).
Private schools. I started off paying $600 pesos in 2008 and this year the same school charges $3000. In 2008 the exchange rate was 3.16-to-1. So from Dollar equivalent of $189 USD/month to $335 USD/ month. Roughly 77% increase.
Low-income stuff. In 2009, the exchange rate was about 3.5-to-1. My bothers-in-law could rent a place in 2009 for about 500 pesos. Today they pay about 3000 pesos. From about $228 USD a month to $335 USD a month. About 47% increase.
Their salaries were about $1500 pesos in 2009 as verduleros and their salary today is about $5500. About a 266% increase.
Yet, they were paying about 33% of their income for housing, now they are paying about 54%. They used to be able to just barely afford to live alone in a hotel, but now they have to at least double up to make ends meet.
My wife's oldest sister lives in Jose C. Paz and has three kids. Two of them are school age (one 14 the other 11 or 12). She doesn't have the option of public school for her older son because all the public schools near where she lives have long waiting lists to get in (secondaria), though her youngest does attend primaria there. One of her kids attends the school where my second girl goes (I think in numbers in terms of order in which they came to live with us) (between 1 and 2 hours in the morning and afternoon to come in with mom, and makes the return trip alone). It's much less expensive than where my first girl went (the price I mentioned under Private Schools above) - "only" $1300 pesos a month. Last year was the first year my second girl went to this new school and the year started out at $800 pesos a month. My wife's oldest sister makes about $7000 pesos a month cooking and cleaning for a wealthy expat from the US and her boyfriend from Holland (who is a friend of mine). She doesn't pay rent because we all got together and built a house for her and her kids where she chose to live.
Thing is, inflation affects many of us expats a whole lot less than middle class and poor Argentinos because most of us have access to Dollars and can get better buying power because we can access the blue market for our every-day expenses. Upper class Argentinos are mostly in the same boat as they have a lot of Dollars available to them one way or the other. And before anyone corrects me on the latter, I just got back today from changing at my favorite place and there were about 10 people waiting in the anteroom to change money. My sister-in-law went with me to change, so she and I weren't Argentine, and there was a Brazilian couple there, so neither were they, but the other 6 were indeed Argentinos (I'm assuming not tourists from other provinces, and I know three of them were friends who came together to sell Dollars because they were talking to each other and obviously knew each other and lived here). And given how they were dressed and acted, they were at the very least upper-middle class.
People who belong to strong labor unions here have seen their salaries rise quite a bit because they have a lot of political power behind them. Funny thing is, I don't know any poor people who are members of strong unions. One of my brothers-in-law is a member of a union, but I don't know which one it is (I realized just now!). He works for Terrabusi and makes about $8K a month. He started about two years ago at $4K. He works with the guys who make deliveries to kioskos and supermarkets.
Seems to me most of the people in Buenos Aires don't have the benefit of strong labor unions or great jobs to bring their earnings up. I have to admit the inflation numbers that wild_horses posted seem correct to me (as of 2013, but as many mentioned, that didn't tell the whole story because 2014 and this year haven't been all that grand in relation to those two), but the purchasing power just doesn't seem correct, given what I see all around me. The better job you have, the better you are protected, against inflation (of course, it's all relative anyway), but the lower on the economic totem pole you are, the worse is your protection, it seems to me. Not so good for a "pais de todos incluidos", no matter how you stack it up. IMO.
In 2006 I could buy a movie ticket for about $10 pesos. Today, it's $90 pesos - or 3D at $100 pesos. Dollar equivalent went from about $3.3 to about $10 USD for a 2D movie, a bit more for a 3D movie. Roughly 300% increase against the Dollar value.
In 2007 I could buy a fully loaded cart, and about 1/3 to 1/2 of another, of groceries from Jumbo in Palermo for just less than $1000 pesos, maybe $950. Two days ago I went to Carrefour and bought one loaded cart for $3500 pesos. From about $315 USD to $391 USD. Roughly 25% increase against the dollar - and that does not include the difference in quantities I mentioned in the first part of the paragraph. It is most likely at least 40% increase against the dollar, considering that I was buying somewhere around 40% more in 2007 than the 25% figure indicates (I'm too lazy at the moment to do an extrapolation).
Private schools. I started off paying $600 pesos in 2008 and this year the same school charges $3000. In 2008 the exchange rate was 3.16-to-1. So from Dollar equivalent of $189 USD/month to $335 USD/ month. Roughly 77% increase.
Low-income stuff. In 2009, the exchange rate was about 3.5-to-1. My bothers-in-law could rent a place in 2009 for about 500 pesos. Today they pay about 3000 pesos. From about $228 USD a month to $335 USD a month. About 47% increase.
Their salaries were about $1500 pesos in 2009 as verduleros and their salary today is about $5500. About a 266% increase.
Yet, they were paying about 33% of their income for housing, now they are paying about 54%. They used to be able to just barely afford to live alone in a hotel, but now they have to at least double up to make ends meet.
My wife's oldest sister lives in Jose C. Paz and has three kids. Two of them are school age (one 14 the other 11 or 12). She doesn't have the option of public school for her older son because all the public schools near where she lives have long waiting lists to get in (secondaria), though her youngest does attend primaria there. One of her kids attends the school where my second girl goes (I think in numbers in terms of order in which they came to live with us) (between 1 and 2 hours in the morning and afternoon to come in with mom, and makes the return trip alone). It's much less expensive than where my first girl went (the price I mentioned under Private Schools above) - "only" $1300 pesos a month. Last year was the first year my second girl went to this new school and the year started out at $800 pesos a month. My wife's oldest sister makes about $7000 pesos a month cooking and cleaning for a wealthy expat from the US and her boyfriend from Holland (who is a friend of mine). She doesn't pay rent because we all got together and built a house for her and her kids where she chose to live.
Thing is, inflation affects many of us expats a whole lot less than middle class and poor Argentinos because most of us have access to Dollars and can get better buying power because we can access the blue market for our every-day expenses. Upper class Argentinos are mostly in the same boat as they have a lot of Dollars available to them one way or the other. And before anyone corrects me on the latter, I just got back today from changing at my favorite place and there were about 10 people waiting in the anteroom to change money. My sister-in-law went with me to change, so she and I weren't Argentine, and there was a Brazilian couple there, so neither were they, but the other 6 were indeed Argentinos (I'm assuming not tourists from other provinces, and I know three of them were friends who came together to sell Dollars because they were talking to each other and obviously knew each other and lived here). And given how they were dressed and acted, they were at the very least upper-middle class.
People who belong to strong labor unions here have seen their salaries rise quite a bit because they have a lot of political power behind them. Funny thing is, I don't know any poor people who are members of strong unions. One of my brothers-in-law is a member of a union, but I don't know which one it is (I realized just now!). He works for Terrabusi and makes about $8K a month. He started about two years ago at $4K. He works with the guys who make deliveries to kioskos and supermarkets.
Seems to me most of the people in Buenos Aires don't have the benefit of strong labor unions or great jobs to bring their earnings up. I have to admit the inflation numbers that wild_horses posted seem correct to me (as of 2013, but as many mentioned, that didn't tell the whole story because 2014 and this year haven't been all that grand in relation to those two), but the purchasing power just doesn't seem correct, given what I see all around me. The better job you have, the better you are protected, against inflation (of course, it's all relative anyway), but the lower on the economic totem pole you are, the worse is your protection, it seems to me. Not so good for a "pais de todos incluidos", no matter how you stack it up. IMO.
scotttswan
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The gnocchis are probably doing much better but its the rest of us who are supporting them.