Which Has The Better Economy: Argentina Or Chile?

[argsteve]

Doesnt chile have almost no national debt compared to argentina ??

 

[Lost in Buenos Aires]

you have to pay for everything there and in Argentina it is free.

Yah? Such as...?

 

[camberiu]

In 2009 it took 509 Chilean pesos to buy a dollar.
Today, 4 years later, it takes 506 Chilean pesos to buy a dollar. There is no Blue rate in Chile and you can go to any bank and buy as many dollars as you want, no questions asked.

What does that tells you about their economy vs. Argentina's? What can you infer from a country's economy when no one trusts their own currency?

 

[ajoknoblauch]

In 2009 it took 509 Chilean pesos to buy a dollar.
Today, 4 years later, it takes 506 Chilean pesos to buy a dollar. There is no Blue rate in Chile and you can go to any bank and buy as many dollars as you want, no questions asked.

What does that tells you about their economy vs. Argentina's? What can you infer from a country's economy when no one trusts their own currency?

A few years ago, the Chilean peso was at nearly 700 pesos to the dollar, and a few months ago around 450. It tends to fluctuate with copper export prices, but Chileans simply do not worry about the price of the dollar. When I had to reimburse a Chilean friend for a purchase a while back, he was a little annoyed that I did not have pesos.

 

[camberiu]

This video compares Brazil and Argentina in regards of buying and using dollar, but one could easily replace Brazil with Chile and the outcome would be exactly the same.


http://youtu.be/L1giVsU5zDw

 

[arlean]

Lost in Buenos Aires: I don't really know. That's just what I am told by Argentinians who tell me not to consider living there because you have to pay for everything there (that's a quote). Not that I am (going to live there) I do plan to visit friends there, and I have several. I do know they don't subsidize utilities, you can't go to university for free, and especially if you aren't local (In Argentina anyone from any country can come and get a free education, not that I object, but imagine if you took it on yourself to educate all the kids in your neighborhood, probably financially you wouldn't be in good shape either) They don't have the social programs that Argentina has they tell me. You have to pay for your own stuff. But I can't give you chapter and verse. I know some things, but not a lot of details. By the time I get back from Chile though, I will know a lot more.

 

[camberiu]

Folks, there is no such thing as "free university" or "free healthcare", specially in Argentina. You pay for it just like in Chile, but you do it indirectly and you have no way of knowing how much bang you are getting for your buck.

Every time you buy an item in Argentina that costs 50% to 100% more than the same item in Chile (due to taxes) you are paying for the "free" university and health care. When you see the prices of items in the super market go up while your wages remain the same, you are paying for that "free" university and health care via the inflation tax.

But while in Chile you know how much your University education or your healthcare are costing you, in Argentina the costs for both education and healthcare are completely hidden and masked.

Finally, let's no forget that Chile tops Argentina on most if not all social indicators, including literacy, child mortality and life expectancy. Also remember that 30 years ago, that picture was very different.

 

[arlean]

WOW Camberiu hits the Bull's Eye. Nothing is free. I have had this conversation with so many Argentinians it is amazing. And they do NOT get it, for the most part. A rare few do. Most of them honestly think it is free. And that includes the middle class that pays most of the taxes. Of course a lot of it is the hidden tax of inflation caused by governments printing a bunch more money than they can collect in taxes to pay for it all!!!)

Not only do we pay, we also have to pay the bureaucrats that administer it and everybody else along the way. It would cost less if we just paid it outright. Good job Camberiu! You know your economics!

 

[jackbower]

I have no idea who has the better economy since its all very subjective. Regarding education though, I know quite a few Chilean friends who are studying at many universities here. I go to school with a few at Gato Dumas. When all the student protests were going on in Chile. I aske quite a few of them what was going on and was told most of them come to Argentina because schooling is way too expensive in Chile and if you are lower middle class or middle class, you dont qualify for any government assistance since you might just barely not meet the minimum requirements. At the same time the Chilean government spends billions buying F-16s and other pricey US made military equipment. On the other hand every Argentinian I know studies for free or pays very little but their military is a joke. Who is to say what is a better place for governments to invest their money. On their youth or on expensive toys they might never even use.

 

[camberiu]

I have no idea who has the better economy since its all very subjective. Regarding education though, I know quite a few Chilean friends who are studying at many universities here. I go to school with a few at Gato Dumas. When all the student protests were going on in Chile. I aske quite a few of them what was going on and was told most of them come to Argentina because schooling is way too expensive in Chile and if you are lower middle class or middle class, you dont qualify for any government assistance since you might just barely not meet the minimum requirements.

Yes, of course they come here, when Argentinians subsidize the education of Chileans, with no strings attached. It is one of the dumbest policies I have ever seen and the poor Chileans would be stupid not to take advantage of it. If you had limited funds and had to choose between an university that although expensive but that you can afford it, vs a university that is 100% free, which one would you pick? That by no means is an indication that the economy in Argentina is better. It is simply an indication that the policy is so stupid that Argentina now subsidizes the education of its wealthier neighbor.

And yes, Chile has a better airforce than Argentina. Also has much better universities (not free), better infrastructure and better social indicators. For example:

Child mortality rate in Argentina is 50% higher than Chile's. So Chile can afford a better air force AND better pre-natal and post-natal care than Argentina. All with lower taxes, lower inflation and no currency controls.