Farm Protest: Start of A Civil War?

Everything is backwards down here. I guess because we are south of the equator. Although the jury is out on the whole water draining down the toilet thing, every thing else is reversed.

In the States, we heavily subsidize our farmers. In Argentina, they have resorted to taxing the hell out of them. To the tune of 44% export tariffs on things like soybeans and wheat. Ouch!

Like anyone who's livelihood is reduced by 44%, the farmers are pissed. And they are taking to the streets of the Campo with roadblocks on all the major roads.

By coincidence, the timing comes with maximum impact. During holy week, Buenos Aires empties out and the Argentines take to the road for a four day holiday. The roads are packed this weekend and no one is going anywhere fast. Angers are flaring on both sides of the issue.



The farmers here rule the economy and tariffs on their exports have been filling the government's coffers to the tune of some $39 billion (US) at last count. The soaring commodity prices have been a big factor in Argentina's rapid turn around.

Things aren't all rosy for the new president though. Despite official numbers on inflation at 8.5% it is really topping 20%. People on the streets are grumbling about food prices.

Because of price controls on energy supplies(yes Mike, price controls), there will be a huge shortfall—if not this winter then by next. At current prices, it is just not feasible to refine and produce enough fuel. That has sent Argentina's President in her finest short designer skirts off flirting with Brazil and Chavez to come to the rescue.

Back to the farmers. So how do you solve the high food prices and continue to subsidize energy? Tax the hell out of the farmers. This is socialism at its worst. Lets punish the one sector of the economy that is saving this economy.

The Government gets by with this because the farmers are vilified as greedy opportunists and painted as the cause of the high prices.

One post on the Yahoo BA Newcomers group claimed the farmers were killing babies and deserved all to be taxed until they bleed... Alright, maybe the post was on how their blockades were shutting down all the roads were causing accidents...

“Greed runs deeper than wealth in these farmers. So before offering
any sympathy for these swine; remember the people bleeding to death
in accidents along these roads, and the ambulances that can't get
through cause some greedy rich farmer doesn't want to surrender a
small percentage of his outrageous profit in this poverty-seized
nation.

To hell with the corn revolution.”

It is that kind of propagandist vilifying that allows things like this to get out of control. It is starting to split the country. On yet another BA Newcomers post, a women quotes her Argentine boyfried as saying, “the country is heading to civil war.” I doubt it. However, it is yet another crack in the wall.

It is all a sad reminder of how this country continually shots itself in the foot economically. Every seven years this country implodes. Cristina's economic policies just might get us their sooner than we thought.

Let Them Eat Wii!

We were shopping at the Paseo Alcorta shopping mall the other day and we noticed a Nintendo Wii in the window of a store. We about passed out on the spot. The price was a mere AR$3,000. That is $1,000 in US dollars. It was not some ebay scam. It was not due the some crazy inflation rate. That is the actual retail price here.

I love my Wii. We can't imagine life without it. I don't know that I would pay $1000 for one.

It is not just Wii's that are priced so crazy. All electronics here are priced through the roof due to huge import duties. Just the other day I was offered a handsome sum for my video iPod. The offer was more than double what I paid for it and it is even a couple of generations old now.

Most things in the store are made here. The government since the time of Peron has really pushed Argentine economy to be self sufficient. And that policy has helped employ a large number of people. However, this gringo feels they are getting a raw deal.

The stores are filled with inferior goods. We went shopping for baby strollers last week and were looking at paying $200 for a stroller that was not even to the standard of the $19.95 version at Toys R Us. Why? My guess is that the market isn't being allowed to work freely and efficiently and the manufactures here have been insulated from any real competition. Plus the raw goods are harder to come by and more expensive from the duties placed on them.

Another example. My daughter started school way out in the suburbs. Which means she (and we) must get up at the un-Argentine hour of 6:00 to get ready for the bus that comes by at 7:00. Time to get an alarm clock. Only there are none to be found in the stores. At first I thought this was a cultural thing. Why would a country that prides itself on never being on time for anything need alarm clocks? OK, it may be partly due to that. But in reality with limited pesos, why spend money on the overpriced item when the alarm on your cell phone will work just fine.

We were told in our expat orientation meeting at school that if you want to find good quality goods go out to the Wal-Mart. The Wal-Mart! Something is seriously wrong with this place if I have to go to Wal-Mart to find "quality".

If they opened the markets here and eliminated the tariffs, prices would come down, the economy would grow the quality of life would increase along with the quality of goods. Sure some local manufacturers would have to close due to the pressure to compete globally. But, BustBuy, CompUSA and the new Argentine equivalents would trip over themselves opening new stores employing more than the factories that did have to close ever did.

Then every boy and girl would be blessed with Wiis and life would be grand. I say let them eat Wiis! Wii tennis anyone?