Tough Times For Argentine Factories As Consumers Penny-pinch

[Albany]

I have a few friends that own factories and they say they will most likely have to shut down soon the way things are going. The outlook looks bleak.

Tough Times For Argentine Factories As Consumers Penny-pinch

Argentina's factories, like many economic sectors, are floundering as consumers hit by sky-high inflation and shrinking income buy fewer goods.

www.barrons.com

 

[Larry]

T

I have a few friends that own factories and they say they will most likely have to shut down soon the way things are going. The outlook looks bleak.

Tough Times For Argentine Factories As Consumers Penny-pinch

Argentina's factories, like many economic sectors, are floundering as consumers hit by sky-high inflation and shrinking income buy fewer goods.

www.barrons.com

This is true and things are getting worse each day. Economy keeps getting worse despite what Milei supporters try to argue. The inflation is worse, poverty levels are higher. Cost of living is higher.

Milei made the peso artificially pricey which hurts competition. His administration is talking about opening up imports which will put these factories out of business. Market will get flooded with Chinese cheap products. Utility rates going up. I can't see anything but many businesses going out of business soon.

 

[Swowbird]

I hope he opens up imports. These local companies will either need to get competitive or die. I have no issues if they close down. Consumers will win with more products and choices and lower prices. As it should be.

 

[Uncle Wong]

I hope he opens up imports. These local companies will either need to get competitive or die. I have no issues if they close down. Consumers will win with more products and choices and lower prices. As it should be.

I am amazed how expensive simple things here are so expensive vs. USA. They need to open up an IKEA here urgently! Crappy plates and housewares here are crazy expensive.

 

[Betsy Ross]

Agree quality here is very low and prices are very high. Not just housewares but look at things like towels and sheets. Very poor quality and expensive. Difficult to find good quality items. I agree with you @Larry that local businesses will probably have to close if they can't be competitive. I am not sure that is a bad thing. Sure some will lose their jobs but that is what happens when companies cheat customers with extremely high rip off prices under the guise of protectionism. Compete or die.

 

[import export]

Agree quality here is very low and prices are very high. Not just housewares but look at things like towels and sheets. Very poor quality and expensive. Difficult to find good quality items. I agree with you @Larry that local businesses will probably have to close if they can't be competitive. I am not sure that is a bad thing. Sure some will lose their jobs but that is what happens when companies cheat customers with extremely high rip off prices under the guise of protectionism. Compete or die.

If all these factories and businesses close and all these people those their protectionist jobs, where will they go? It doesn't sound like there are enough businesses to employ these people. Now with the government laying off people by the tens of thousands, what is the outlook for employment for these types?

 

[Digital Nomad]

If all these factories and businesses close and all these people those their protectionist jobs, where will they go? It doesn't sound like there are enough businesses to employ these people. Now with the government laying off people by the tens of thousands, what is the outlook for employment for these types?

From what my girlfriend's father tells me, these Noquis have never really had an honest job and have no real business skills. They don't have any shot of any meaningful high paying job now that Milei has ended their charade. I'm sure that many factory workers are working honest jobs but they sound like they will lose jobs of no fault of their own.

The upcoming period sounds ugly. No matter which way either political party wants to spin things. I think they would have been horrible with Massa but I don't think things are going to great for Milei either.

 

[Larry]

From what my girlfriend's father tells me, these Noquis have never really had an honest job and have no real business skills. They don't have any shot of any meaningful high paying job now that Milei has ended their charade. I'm sure that many factory workers are working honest jobs but they sound like they will lose jobs of no fault of their own.

The upcoming period sounds ugly. No matter which way either political party wants to spin things. I think they would have been horrible with Massa but I don't think things are going to great for Milei either.

We can only go by numbers as numbers don't lie. Things since Milei has taken over has gotten worse. No argument about that. Forget about Massa as he isn't the President. Inflation has shot up even worse than it was. Prices are insanely high.

No one really has a living wage these days except for a very small percentage of people. Prices are on par with the States or Europe on meager salaries. Milei already terminated employment for tens of thousands of employees and hundreds of thousands more will lose their job once these factories and other companies go out of business. What do you think will happen? This will not end up well.

Gustavo Weiss: "El sector vinculado a la obra pública está totalmente parado"

“El Estado está dejando de tomar crédito de los bancos y esto puede redestinarse a la infraestructura si la macro se estabiliza”, aclaró el titular de la Cámara Argentina de la Construcción (CAMARCO) sobre el horizonte del sector.

www.perfil.com

 

[GlasgowJohn]

I am amazed how expensive simple things here are so expensive vs. USA. They need to open up an IKEA here urgently! Crappy plates and housewares here are crazy expensive.

IKEA would never open here with labor laws as they are at the moment.

They also import most of the stuff they sell and they would need much more import friendly legislation

 

[Digital Nomad]

IKEA would never open here with labor laws as they are at the moment.

They also import most of the stuff they sell and they would need much more import friendly legislation

The more I research about Argentina the more I think that even Milei can't help them long-term. Almost every person that I meet that owns a company in Argentina has told me a nightmare scenario about their employees. Shocking stuff. I don't think any big company would set up shop here unless they change the laws. And Milei doesn't have support to change the laws. So this sounds like it would never happen.

 

[Vero]

Argentina has been through time times before. The country has made many achievements over the years. I was here during the corralito and protests daily. Tires and trash set on fire and streets blocks all over major thoroughways. Many of you complaining weren't here during those hard times.

 

[crypto]

The more I research about Argentina the more I think that even Milei can't help them long-term. Almost every person that I meet that owns a company in Argentina has told me a nightmare scenario about their employees. Shocking stuff. I don't think any big company would set up shop here unless they change the laws. And Milei doesn't have support to change the laws. So this sounds like it would never happen.

To add to the problem, almost no one in Argentina is paying any income taxes. Look at the statistics and less than 90,000 people in all of Argentina make enough to pay income taxes. Where everyone is getting screwed is the 21% IVA tax on everything and all the other taxes. The wealthy can afford to pay this but the poor families can't.

Argentina is broken and I'm not sure it is fixable in the near term or even the long-term.

Argentina Spares Millions From Paying Income Tax as Vote Nears

Argentina will exempt millions of workers from paying income taxes, a dramatic attempt by Economy Minister Sergio Massa to improve his standings in next month’s presidential election at the risk of deepening the country’s fiscal hole.

www.bloomberg.com

 

[tyler33]

I hope he opens up imports. These local companies will either need to get competitive or die. I have no issues if they close down. Consumers will win with more products and choices and lower prices. As it should be.

Fortunately that has already begun!

Economy - The first imported foods arrive and the Government hopes that they will accelerate the decline in inflation - Ambito Financiero

The first imported foods arrive and the Government hopes that they will accelerate the decline in inflation - Ámbito Financiero Source: https://www.ambito.com/economia/llegan-los-primeros-alimentos-importados-y-el-gobierno-espera-que-aceleren-la-baja-la-inflacion-n5989713 April 29, 2024 By...

www.expatsba.com

 

[Vero]

Fortunately that has already begun!

Economy - The first imported foods arrive and the Government hopes that they will accelerate the decline in inflation - Ambito Financiero

The first imported foods arrive and the Government hopes that they will accelerate the decline in inflation - Ámbito Financiero Source: https://www.ambito.com/economia/llegan-los-primeros-alimentos-importados-y-el-gobierno-espera-que-aceleren-la-baja-la-inflacion-n5989713 April 29, 2024 By...

www.expatsba.com

But I haven't noticed anything yet or lower prices.

 

[tyler33]

According to what I have read, some products are up to 75% cheaper than the national ones, maybe it is only a matter of time before they reach the supermarket shelves.

Economy - They already sell imported foods in Argentina: the products that follow and the effect on prices - El Cronista

They already sell imported foods in Argentina: the products that follow and the effect on prices - El Cronista Source: https://www.cronista.com/economia-politica/ya-venden-alimentos-importados-en-argentina-los-productos-que-siguen-y-el-efecto-en-precios/ April 30, 2024 While the first...

www.expatsba.com