[TANGO-L] Cost of living in Argentina

[Sergio Vandekier <sergiovandekier990 @HOTMAIL.COM>]

The cost of living in Argentina, from the point of view of a foreigner, is
very low comparing to that of the rest of the world. This is so because the
exchange rate Argentine peso vs. American Dollar is kept artificially low
3:1. (1 dollar buys 3 pesos).  This exchange rate is kept there with great
difficulty as the tendency of the dollar is to lower in relationship to the
peso.   The central bank has to buy millions of dollars on a daily bases to
attempt to maintain that exchange rate. The rate used to be 1:1 for the last
10 years before the devaluation of 2001.

The benefit of this new rate is that makes Argentine products very cheap
abroad, this increases exports and jobs at home, and fueled the rapid
recovery from the catastrophic crisis of 2001.

The INDEC ( National Institute of statistics and census) calculates the
price of  the "Canasta familiar".
The basic cost of food necessary to nourish a family of 4 (parents and two
children) per month at about $388 (130 dollars per month). I recently saw a
TV program where a dietician prepared and gave the recipes for  a daily menu
for such a family unit at a cost of $10 (3 dollars) per day.

Indec also calculates the cost of the "Canasta Basica Total"  composed of
food, education, and other services required for a normal life
(transportation, clothing, etc) at 760 pesos  (262 dollars) for a family of
four .

If you wish to calculate the cost of living in relationship to your own
think that 1 dollar in USA buys the same goods as an Argentine buys with 1
peso.  So one person with a salary of 2000 dollars a months in the USA
should be able to buy the same as an Argentine with a salary of 2000 pesos a
month.

 Salaries are probably lower in Argentina but the cost of some items
disregarding the exchange rate are much lower in this last country.

For instance I went dancing to "La Nacional" a good milonga in New York last
Thursday. My sister lives in Staten Island and drove me to the Ferry which
is free, then once in Manhattan I took a cab 15 dollars . 12 dollars entry
fee. 3 dollars a coke.
A cab back to Staten Island 55 dollars. Total 85 dollars.

The same outing in Buenos Aires would have been about 30 pesos (10 dollars).

Transportation is much cheaper a cab ride usually is about 10 pesos (3
dollars or less. Buses, trains, subway is about US  $0.20, food in a
restaurant US $ 3 or $ 4.

Renting an apartment 400 - 800 pesos (133 -266 dollars) per month.  Taxes
are probably much lower as well.  You can buy a fiat small car for about
11,000 pesos (3700 dollars) and a nice Honda motor scooter for 4000 pesos
(1333 dollars). Medical care and education through graduate school can be
free or may require small payments. Private care or education is more
expensive.

Summary: the cost of living in Argentina today is very low comparing to that
of most nations of the world.   Despite of this there is high unemployment
rate causing many people to have to live from very low government subsidies.
 As the nation straggles to pay a high foreign debt social services have
been deteriorating. There are frequent demostrations of indigent people or
strikes from workers asking for increases in their salaries.  All this is,
in part,  result of transforming Argentina from a welfare state as it
traditionally was, into a modern free market economy, the best example of a
victim of the so called "Global Economy".

Hopefully this will help you to understand the complex economical situation
of Argentina Today.

Best regards, Sergio

See INDEC at
http://www.colonbuenosaires.com.ar/semanariocolondoce/cgi-bin/hoy/archivo/00001102.html

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