4054  Inflation et al

Date: Thu, 16 Feb 2006 10:58:53 -0300
From: Deby Novitz <dnovitz@LAVIDACONDEBY.COM>
Subject: Inflation et al

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.

Let4s 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? Let4s 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.

Date: Thu, 16 Feb 2006 02:18:33 -1200
From: Michael <tangomaniac@CAVTEL.NET>
Subject: Re: Inflation et al

There's been a lot of writing about inflation in BA and
complaints about two tier pricing for lessons and milongas.
This really is just human nature. When gas prices in the US
spiked after Hurricane Katrina shut down refinery operations
in the Gulf, American consumers looked for the cheapest
price. If one gas station sold regular for $3.11 and a
station half a mile away sold regular for $3.05, the station
selling gas for $3.05 would have cars hanging out the
driveway. A SUV with a 40 gallon tank would save $2.40 (40
gallons * $.06) at the cheaper station. For some people,
it's worth 20 minutes to wait to save $2.40.

This is a PSYCHOLOGICAL reaction. Nobody likes to feel they
are being overcharged. The amount of money is meaningless!!
It's the principle. If people actually asked themselves,
"Why am I getting upset over $2.40, (or $1.75 for a milonga)
they would probably be embarassed. It might not be rational,
but it's psychological.

Michael Ditkoff
Washington, DC
Haven't been to BA yet. As my Amtrak friends say "Waiting
for the time to be right."

Date: Thu, 16 Feb 2006 10:20:30 -0800
From: Igor Polk <ipolk@VIRTUAR.COM>
Subject: Re: Inflation et al

Here is the San Francisco's Fisherman's Wharf virtual tour
Deby was talking about:

https://www.virtuar.com/ysf2/fishermans_wharf.htm

At least I do not charge you anything.

Igor Polk

Date: Thu, 16 Feb 2006 19:27:11 +0100
From: Christian Lüthen <christian.luethen@GMX.NET>
Subject: Re: Inflation et al

On 16 Feb 2006 at 10:58, Deby Novitz wrote:

>
> 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?

All right, just to rectify, before people do get my position wrong:
Travelling to Bs.As. I am allways on a tight budget: I am allways going for
the lowest airfares (and if they are not low enough I can not go). I do not stay
in expensive hotels, neither in expensive tango-hotels. I NEVER bought 5
pairs of shoes ... and to continue in your argumentation: I NEVER took these
expensive private lessons, I never went out dining expensive, I NEVER
brought back more than 1 bottle of middle price wine as a present ... no
other tourist presents ever ...
... therefore I take the right to complain about ripping off!

I agree with you that those people who are just dining out to the max,
dancing all nights with taxis and no other means of transportation, those
people who are taking private lessons every day (sometimes more than one
a day), those who buy half of the stock of the touristy shoes dealers (I met
women travelling back with 12 pairs of shoes bought), those who through
the money around ... they perhaps should not complain about 50 cent (Euro
or US$) more allthough still a surcharge for tourist is not adequate!

But I NEVER travelled that way! I NEVER through around the money like
that ... therefore I take the right to complain.


And - once again - : True buisiness is not build upon so called growth of
income only ... it's build upon continuity. Ask me for a fair (!) price ... and I
will come back: this time and also the next time! Usually I stay for 4-5 weeks
in Argentina ... 4-5 weeks, this time and next time, calculates as 10 times
adequate entrance ... instead of one time, got ripped off and therefore
NEVER again!


I love Bs.As., I love being there. I've been there last year, the year before
and the year before the year before. (and before the devaluation)
Unfortunately last year the trend which started the year before continued: the
rip-off-feeling came up more and more often, more than the usually
accepted average. Therefore only my addiction for tango (and the town) will
make me come back one day ... not the (un)respectfullness of the locals.
This is sad, very sad!

Enjoy Bs.As., folks!
Christian, Rotterdam, The Netherlands, Europe