How many salaries are required to buy a bike, a car or an apartment

The purchasing power of wages deteriorated amid the severe recession caused by restrictive measures implemented by the Government to alleviate the consequences of covid-19 (Reuters)
The purchasing power of wages deteriorated amid the severe recession caused by restrictive measures implemented by the Government to alleviate the consequences of covid-19 (Reuters)

Affected by the covid-19 pandemic and the consequent quarantine that lasted more than 200 days as a method to alleviate the spread of the virus and prevent infections and deaths, the economy registered one of the most important setbacks in Latin America and points to close the year in the third to last place in terms of recession, although with better prospects in 2021.

In this context, Infobae made a survey of the prices of durable consumer goods such as bicycles, cars and apartments to account for the amount of wages that are needed to acquire them, taking into account the Average Taxable Remuneration of Stable Workers (Ripte) index, which is defined as the average remuneration subject to contributions to the Argentine Integrated Pension System (SIPA) received by workers who are under a dependency relationship.

In the midst of the preventive quarantine of covid-19, the bicycle became a travel alternative that not only ensures social distancing and is an ally for the movements of people who join the authorized activities in the different phases according to localities , but it was also the almost obligatory option in view of the restriction that was generally maintained for the use of public passenger means by the workers whose activities began to be enabled.

However, prices suffered a great dispersion due to high demand that was generated from the restrictions to circulate in public transport during the social, preventive and mandatory ASPO isolation that was in force since March 20 and for more than 200 days.

With the Ripte level of December 2019, from $ 49,574, up to three standard type 29 wheeled mountain bike model bicycles could be purchased, whose average price was at that time $ 16,000. In March 2020, with an average income of $ 56,873, at the beginning of the quarantine, that relationship was maintained because the number of vehicles increased by 3 percent.

However, nine months later, with the jump around 80% that the prices of the reference unit registered in October, to $ 80,000, product of the logistics costs when importing components, added to the protocols for the covid-19, purchasing power fell to less than a third, with a median salary rising to $ 64,756 in gross values.

The standard mountain bike model rolled 29 today has a price range that goes from $ 80,000 to $ 104,000 on the Mercado Libre e-commerce platform, which is far from the average salary

There is a very large dispersion of prices due to the demand that there is and the little supply of the product of the difficulties to produce in a pandemic and to import some components mainly from China. In addition, many merchants import at the value of the commercial dollar and sell at the free dollar price despite the fact that it does not affect their costs, “he told Infobae the owner of Olmo Bikes.

The prices of bicycles suffered a great dispersion due to the high demand that was generated from the restrictions to circulate in public transport during the social isolation by the pandemic
The prices of bicycles suffered a great dispersion due to the high demand that was generated from the restrictions to circulate in public transport during the social isolation by the pandemic

In that sense, the source remarked that while between December 2019 and March 2020 costs increased 3%, since then they have shot up 83 percent.

The firm’s best-selling model, a 29-wheeled standard mountain bike, today has a price range on the Mercado Libre e-commerce platform that goes from $ 80,000 to 104,000 pesos.

The loss of purchasing power of income is a recurring characteristic of the economy, particularly when comparing the average wage earner registered by the Argentine Integrated Pension System (SIPA) of about $ 60,000 since July, with the free exchange rate of $ 166 per dollar, because it yields an equivalent of USD 364, when before the quarantine and in a scenario of less exchange rate uncertainty, that ratio was USD 718.

In that sense, in January 2020, the minimum wage measured in dollars in Argentina was more or less in the middle of the table in the Latin American neighborhood, with $ 282.5 measured at the official exchange rate, as measured Statista, a global analyst and provider of statistics and comparisons, but it fell below Brazil and only above Mexico and Venezuela if the free dollar was taken.

Cars and apartments

On the contrary, in the case of a zero kilometer car, the best-selling model during November was the Fiat Cronos, whose average value is $ 1,100,000, today 17 average salaries of the registered worker are needed to buy it, similar to the proportion it had in March, and slightly lower than the one it showed in December 2019, when it was 17.8 salaries.

In order to acquire the best-selling car in November, according to Acara, 17 average salaries are needed today according to the Ripte index, a year before it was 17.8 salaries
In order to acquire the best-selling car in November, according to Acara, 17 average salaries are needed today according to the Ripte index, a year before it was 17.8 salaries

Whereas if one thinks of an apartment of 40 square meters in the City of Buenos Aires, at an average value of USD 1,870 the square meter used in a building without amenities, according to information from Real Estate Report, Today 4.8 salaries are required to acquire a square meter and almost 192 average salaries to acquire that home.

That proportion in November 2019, with a price per square meter of USD 2,246, and an average salary of $ 49,574, it was 7.5 salaries per square meter and almost 301 the reference department, and it fell moderately in March 2020, to 6.4 and 255 salaries per square meter and the total unit, respectively.

Clearly, the effect of the health crisis affected the real estate market significantly more than the average salary of the economy on average, although the total income of all workers contracted significantly more than the average income, due to the loss of up to 4 million jobs at the time of greatest preventive and compulsory social isolation, in the second quarter, and 2 million today.

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