Inflation in Buenos Aires
Last week when I was in San Francisco one of the people I know approached me in the milonga. He went on this absurd and rediculous tangent about how people in Buenos Aires are "abusing" the people who come to dance tango.
When I asked him to explain what he meant, he said that the prices being quoted were much higher than last year. I explained to him that we had 30% inflation last year and prices are continuing to rise. He refused to believe it. He thinks it is some kind of government plot to fleece the pockets of foreign tango dancers.
I wanted to backhand him into his $40,000 SUV and hopefully propel him into his $600,000 condo. Nothing I could say to him would change his mind. He read it on Tango-L, so therefore, it must be true.....
I read several of the posts to Tango-L concerning this topic. Here is my response to all you idiots (and you are idiots) for your attitude:
I have been watching this thread and wondering if some of you live in a
bubble. I moved to Buenos Aires from San Francisco. From reading the
posts on this list one would think that Buenos Aires has the market
cornered on overcharging tourists. If you live in the Bay Area or have
been to San Francisco, no doubt you have heard of places like Pier 39
(Built for tourists), the Cable Cars, (which are supposed to be part of
the Muni system but charge more to tourists), and what used to be a
Fisherman's Wharf. Ask any local if they eat seafood at Fisherman's
Wharf and they will look at you like you are crazy. Overpriced and
mostly mediocre seafood in a tacky tourist oriented environment.
First and foremost most cities have a price for locals and a price for tourists. The problem is that when you live in a city, you know where the best deals are. You don't rely on a guidebook to tell you where to go. You know what places are the ones you want to go to. Why is it a big surprise to anyone that Buenos Aires is just like Paris, San Francisco, Los Angeles, New York, Barcelona or any other city? Is it because you want to come here or because it is in Latin America? Are you that naive to think that this is the only place in the world that does this? OR is it because it is hitting your pocketbook for dimes. (inflation makes is more costly than pennies.)?
Before I moved to Buenos Aires, my first time here was in 2000. This was when the peso was equal to the dollar. Although San Francisco was still more expensive than Buenos Aires (not by much), compared to Mexico and other South American cities it was expensive. There was at that time a two tier price schedule for tourists and locals. This is not a new thing.
I had friends who were getting into milongas for 3 pesos while I paid 5. At that time the 2 pesos were equal to $2.00 USD not the 75 cents it is now. I saw this in shoes and lessons as well. Locals were paying 35 pesos or $35 for a private lesson while the tourists were paying 50 pesos or $50. If you negotiated or the teacher liked you or you were able to pay for a package up front most teachers reduced the lessons to the "Argentine" price.
Let's look a little bit about the economy back then. A person making 25,000 pesos was making the equivalent of $25,000 USD. Salaries were less for the same job in California but not totally unreasonable. The cost of rent and food was less expensive than what I would have paid in San Francisco. You could rent a nice 1 BR in BsAs in 2000 for $500 pesos, no way could you have rented anything in San Francisco except a broom closet for $500. Therefore the person earning $25,000 pesos a year and paying $35 pesos for a private lesson was not being stretched.
Let´s flash forward. That same person who earns the 25,000 pesos is no longer earning the equivalent of $25,000. They are earning $833.00 That $500 peso apartment is now around 650 - 700 pesos or around $250.00.There is no way they could afford to pay $35 USD for a private lesson. They are paying the same as they did in 2000 - 35 pesos. Tourists are also paying the same as when they came here in 2000 - $50 and sometimes less. (Unless you are stupid enough to pay $100 or more an hour to someone you think is a big name.)
Would someone please tell me why I am supposed to feel sorry for people who pay upwards of $700 USD to get here, more than $500 to stay here, who have no problem buying 5 pair of shoes that cost them $300, but cannot handle paying 2 pesos or 75 cents more to enter a milonga? A young woman I know stopped her classes with a teacher here when she found out the group class fee for Argentines was 10 pesos and for foreigners was 15. The 5 pesos is about $1.75 more. She paid $950 to come here, she rents an apartment for $750, she has spent countless dollars on clothes, shoes, and food. She had cosmetic surgical procedures, but cannot handle paying $1.75 more for a class from a teacher she enjoys.
Inflation is killing us. I am not asking for pity or sympathy. My expenses for my apartment keep rising. In November I paid in pesos 285 pesos, December I paid 295 pesos, January was 310 and this month was 320, 35 pesos more. I have no idea if the amount will keep rising, I only have to assume that it will. This has been true of every utility bill I have received. My cable bill went from 48 to 51 pesos. My electricity which averaged about 48 pesos was 77 last month. My water bill which was 35 pesos was 44 pesos this month. My dog is not using the computer more, taking more showers, it is called inflation. I am paying out over 100 pesos a month more just to maintain my apartment.
The cost of my health insurance went up 15% this year. My company said it would charge me the 15% if I made monthly payments. If I paid the whole year in advance in cash (no credit cards allowed) they would give me an 8% discount. My rate would still rise 7%. Other insurance companies raised their rates as much as 20%.
Food? Let´s see, last year Ser yougurt was 89 centavos today it was 1.29 pesos. Milk last year was 1.79 pesos yesterday I paid 2.35. My favorite Armenian restaurant raised their prices last week. A chicken brochette was 5 pesos, now it is 7. Humus that was 4 pesos is now 6. Last night at my sidewalk parilla all the prices were higher. The bottle of wine that last year was 7 pesos is now 9.50.
My costs are around 300 pesos more just to live. I do not live a high life here. I don't take taxis anymore. The price of taxis have gone up. That coupled with my other costs makes them a luxury. Then I listen to you guys complaining about having to pay $1.75 more for a milonga. Let me ask each and every one of you. I dont care how much money you make, would you be able to absorb a $300 USD hit to just maintain your basic living necesities? Does anyone in the US remember COLA raises? We dont have them here in Buenos Aires.
Before you begrudge someone the living they are making, before you begruge someone a whole whopping $1.75, stop and think about what you are saying and put it in perspective. There are greedy people everywhere. There are bad people everywhere. I can tell you this, when a business person has an opportunity to make a little more, they do it, regardless of the country or culture or business. The average Argentine CANNOT pay more. We dont have it to pay. For our businesses to stay in business they have had to raise their prices. As previously quoted by someone else who lives here, most of us are not going to milongas everyday like we used to because we can't. The organizers and teachers still need to work, to eat. So they raised their prices to foreigners a bit to help cover their costs. They did not raise them $5.00 or $10.00 USD, they raised them from .50 cents to $1.75 more. Duh....If the "principle" of this still keeps you away, then you have a choice, go somewhere else.
First and foremost most cities have a price for locals and a price for tourists. The problem is that when you live in a city, you know where the best deals are. You don't rely on a guidebook to tell you where to go. You know what places are the ones you want to go to. Why is it a big surprise to anyone that Buenos Aires is just like Paris, San Francisco, Los Angeles, New York, Barcelona or any other city? Is it because you want to come here or because it is in Latin America? Are you that naive to think that this is the only place in the world that does this? OR is it because it is hitting your pocketbook for dimes. (inflation makes is more costly than pennies.)?
Before I moved to Buenos Aires, my first time here was in 2000. This was when the peso was equal to the dollar. Although San Francisco was still more expensive than Buenos Aires (not by much), compared to Mexico and other South American cities it was expensive. There was at that time a two tier price schedule for tourists and locals. This is not a new thing.
I had friends who were getting into milongas for 3 pesos while I paid 5. At that time the 2 pesos were equal to $2.00 USD not the 75 cents it is now. I saw this in shoes and lessons as well. Locals were paying 35 pesos or $35 for a private lesson while the tourists were paying 50 pesos or $50. If you negotiated or the teacher liked you or you were able to pay for a package up front most teachers reduced the lessons to the "Argentine" price.
Let's look a little bit about the economy back then. A person making 25,000 pesos was making the equivalent of $25,000 USD. Salaries were less for the same job in California but not totally unreasonable. The cost of rent and food was less expensive than what I would have paid in San Francisco. You could rent a nice 1 BR in BsAs in 2000 for $500 pesos, no way could you have rented anything in San Francisco except a broom closet for $500. Therefore the person earning $25,000 pesos a year and paying $35 pesos for a private lesson was not being stretched.
Let´s flash forward. That same person who earns the 25,000 pesos is no longer earning the equivalent of $25,000. They are earning $833.00 That $500 peso apartment is now around 650 - 700 pesos or around $250.00.There is no way they could afford to pay $35 USD for a private lesson. They are paying the same as they did in 2000 - 35 pesos. Tourists are also paying the same as when they came here in 2000 - $50 and sometimes less. (Unless you are stupid enough to pay $100 or more an hour to someone you think is a big name.)
Would someone please tell me why I am supposed to feel sorry for people who pay upwards of $700 USD to get here, more than $500 to stay here, who have no problem buying 5 pair of shoes that cost them $300, but cannot handle paying 2 pesos or 75 cents more to enter a milonga? A young woman I know stopped her classes with a teacher here when she found out the group class fee for Argentines was 10 pesos and for foreigners was 15. The 5 pesos is about $1.75 more. She paid $950 to come here, she rents an apartment for $750, she has spent countless dollars on clothes, shoes, and food. She had cosmetic surgical procedures, but cannot handle paying $1.75 more for a class from a teacher she enjoys.
Inflation is killing us. I am not asking for pity or sympathy. My expenses for my apartment keep rising. In November I paid in pesos 285 pesos, December I paid 295 pesos, January was 310 and this month was 320, 35 pesos more. I have no idea if the amount will keep rising, I only have to assume that it will. This has been true of every utility bill I have received. My cable bill went from 48 to 51 pesos. My electricity which averaged about 48 pesos was 77 last month. My water bill which was 35 pesos was 44 pesos this month. My dog is not using the computer more, taking more showers, it is called inflation. I am paying out over 100 pesos a month more just to maintain my apartment.
The cost of my health insurance went up 15% this year. My company said it would charge me the 15% if I made monthly payments. If I paid the whole year in advance in cash (no credit cards allowed) they would give me an 8% discount. My rate would still rise 7%. Other insurance companies raised their rates as much as 20%.
Food? Let´s see, last year Ser yougurt was 89 centavos today it was 1.29 pesos. Milk last year was 1.79 pesos yesterday I paid 2.35. My favorite Armenian restaurant raised their prices last week. A chicken brochette was 5 pesos, now it is 7. Humus that was 4 pesos is now 6. Last night at my sidewalk parilla all the prices were higher. The bottle of wine that last year was 7 pesos is now 9.50.
My costs are around 300 pesos more just to live. I do not live a high life here. I don't take taxis anymore. The price of taxis have gone up. That coupled with my other costs makes them a luxury. Then I listen to you guys complaining about having to pay $1.75 more for a milonga. Let me ask each and every one of you. I dont care how much money you make, would you be able to absorb a $300 USD hit to just maintain your basic living necesities? Does anyone in the US remember COLA raises? We dont have them here in Buenos Aires.
Before you begrudge someone the living they are making, before you begruge someone a whole whopping $1.75, stop and think about what you are saying and put it in perspective. There are greedy people everywhere. There are bad people everywhere. I can tell you this, when a business person has an opportunity to make a little more, they do it, regardless of the country or culture or business. The average Argentine CANNOT pay more. We dont have it to pay. For our businesses to stay in business they have had to raise their prices. As previously quoted by someone else who lives here, most of us are not going to milongas everyday like we used to because we can't. The organizers and teachers still need to work, to eat. So they raised their prices to foreigners a bit to help cover their costs. They did not raise them $5.00 or $10.00 USD, they raised them from .50 cents to $1.75 more. Duh....If the "principle" of this still keeps you away, then you have a choice, go somewhere else.
Peor, must mean ugly, but is that lunfardo? Have you seen recent photos of Joan, she is looking like Jocelyn Wildensteins twin sister!Gacks!
Do you frequent El Beso?
Posted by: Holly | February 28, 2006 at 02:46 AM
Yes the living Barbies post was freaking hysterical. I have been telling all my clients that story. I'm an esthetician.
I have not met Ari, to my knowledge. Tango here can be very cliquey, so I don't get to dance with everyone. I have not had that problem in BA.
I will look you up, I think it would be nice to come to your English Salon!
Posted by: Holly | February 28, 2006 at 02:41 AM
Hi Holly,
Thanks for your post. Can you imagine what it is like for us? Every day our expenses rise here in BA.
I liked your blog. Susana Gimenez es PEOR in person. She is like a cartoon, way worse than Joan Rivers. It is so sad that she chooses to make herself look so ugly. Did you see my post on Night of the Living Barbies? She is Gross Pig Barbie for sure....
Look me up next time you are here!
Deb
Say Hi to Ari for me. Does he still dance in Vancouver?
Posted by: Deby (TangoSpam) | February 18, 2006 at 01:24 PM
I went to BA twice in one year, January and then again in October, I couldn't believe the rise in prices, and I am amazed how my Argentine friends can manage (well frankly they can't). My goal for the next trip is to use the collectivo 75% of the time!
Posted by: Holly | February 17, 2006 at 02:00 AM