The inflation card

There are 14 replies in this Thread. The last Post () by Rice.

  • I'm mystified as to why they find it so difficult to bring the beast under control. And yes, people do use it as a wonderful excuse to hike the prices.

    They did have it under control when there was the 1:1. I was repeated this so many times that it stuck. So, is it just a matter of will?

    I wish Carlos could provide us some insight, but I hope he is enjoying his holidays in Italy.

  • I read the article. Like all articles it is a description that ends with the question 'what will be next'.

    The hypothesis is that the mind of Argentinian entrepreneurs does not work like everywhere else in the world, so doing like abroad won't solve the inflation issue.


    Hence, inflation is what Argentinian deserves because of who they are. Nice. :cursing:

  • Can somebody please explain this quote to me?

    "Macri’s approach is less moralistic. He takes it for granted that most shopkeepers, factory owners and even trade union bosses are much the same as their counterparts elsewhere and behave the way they do because they have always lived in a different environment. That is why he thinks the country sorely needs a cultural revolution which, among other things, persuades all decent members of the political and economic elite that unless they do whatever it takes to bring inflation to heel, Argentina’s future could be far worse than her recent past."

  • Can somebody please explain this quote to me?

    "Macri’s approach is less moralistic. He takes it for granted that most shopkeepers, factory owners and even trade union bosses are much the same as their counterparts elsewhere and behave the way they do because they have always lived in a different environment. That is why he thinks the country sorely needs a cultural revolution which, among other things, persuades all decent members of the political and economic elite that unless they do whatever it takes to bring inflation to heel, Argentina’s future could be far worse than her recent past."

    Because everybody needs to pull together if this is going to work; an idea which is anathema to most Argentines, since conflict is the air that they breath. Not to mention looking after number one as a result of being shafted by consecutive administrations.

    Just look at the teachers' union who have turned down a 15% wage increase plus $6000 turning up bonus. That union has no intention of pulling together.

  • Because everybody needs to pull together if this is going to work; an idea which is anathema to most Argentines, since conflict is the air that they breath. Not to mention looking after number one as a result of being shafted by consecutive administrations.

    Just look at the teachers' union who have turned down a 15% wage increase plus $6000 turning up bonus. That union has no intention of pulling together.

    Here's a näive thought:. Is there any kind of delayed monetary incentive that all the unions could be persuaded to at least discuss, since mere patriotism and fair play aren't motivators?

  • I am not an economist, but all that i saw in my life was that we were always wasting more money than we collect. And this causes the need to

    1. Get loans to pay the innumerable estate e mployees; or

    2. Print tenders of money to pay all this.

    The loans increase and they need to be paid with other loans. And this increases the interest that sums up to the monew we owe.

    No one wish to loose an advantage. For example, the very well paid Judges will not accept their exemption o f taxes, because there is a law in the Constitution that says that the Judge's wages must not be diminished. In the other social side, the truck drivers do not accept to drive one person per truck. They say that need a kind of "secretary" which help them to open de gates of the truck (but mainly they serve Mate to the driver.)


    In this country, people never had to endure long sacrifices as the British in WW2, the Germans after WW2, or other European countries, not to tell about other peoples.

    Therefore the politician who would say "we need to get rid of inflation by being austere, never waste more money in useless things, or a call for restrain

    inmediate satisfaction" will loss every election. But this is the real outcome to a strong and healthy economy.

  • Thanks.

    Austerity was the word I was looking for. Although Argentines have had to endure different kinds of austerity, unions don't expect austerity for their members.

    • Military dictatorships
    • Hyperinflation
    • Devaluation
    • Ludicrous exchange controls...just a few examples

    And more recently the subsidy cuts for utility services which have helped fuel the recent inflation figures. As an example, the electricity bill for my tiny shop was around $50 per month two years ago and now it's close to $800 per month. That's not a joke.