Argentine Economics

Being abroad it can be hard to stay current on what's going on in the States. I try to read CNN each day to see the lastest info on the elections and other important topics. Most recently the topic of choice has been the financial crisis in the States, which has turned into a global crisis. Each day CNN posts pictures of people almost in tears, accompanying headlines claiming that record lows are being reached in the stock market, unemployment rates, etc. While I'm stressing big time about the economy, I can't help but think about Argentina's economy, which has been in a much quieter financial crisis the past few years.

A decade ago, Buenos Aires had a flourishing economy to match its rich culture. It was one of the most expensive and cosmopolitan cities in the world, boasting its title as the Paris of South America. The Argentine capital expanded its stretch and became known as the capital of South America. Buenos Aires was a magnificent city with so much to offer, and the Porteños (inhabitants of BsAs) knew it too. Their pride garnered them the reputation of being cocky and arrogant, thinking they belonged in Europe rather than on a third world continent like South America.

But I guess all good things must come to an end. The ever volatile Argentine economy crashed during the most recent economic crisis of 2001. The Argentine peso, which had been equal to the dollar, fell hard accompanying wanning prices of everything imaginable. For the first time, this inspired a surge of foreign tourists to take advantage of seeing the former South American capital while trying to experience some of its world-class sophistication at cheap prices.

But while the crisis meant good things for Americans and Europeans, it could only mean hard times for Argentines. My host mom once told me, "In Argentina, we work to live." According to her, besides the priveledged set, partically every dime that Argentines make is spent on the necessities. And maybe a dinner out once in a while. One of my roommates, also from the States, recently started an entry level job at a big company. Out of curiosity, because I had seriously been considering moving back here after graduation, I asked her how much her salary was. She said most people with a college education, working in a professional field would start somewhere between 1400 and 1800 pesos, roughly about 500 USD a month. She listed her expenses, which took up her entire salary and left nothing for a rainy day. She decided to start thinking of ways to hit her parents up for money.

Buenos Aires today is slowly starting to recover from its own financial crisis. Although the economy is a bit better - and the prices a bit higher - than it was several years ago, the effects still remain. Much of the gorgeous French inspired architecture is now tainted from graffiti meant to defy the corrupt government. The crime rate has risen significantly. And the pride that once filled the Porteños, is now a superficial shell, masking the sadness of seeing their country fall from glory and the nostalgia for their past.