Don't Let a Uruguayan Taxi driver tell you an Uruguayan Peso equals an Argentine Peso

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Taxi: Part One

We talk about the lack of confidence the Argentine people have in the economy and the government all of the time. To the point that sometime we forget to recognize how far Argentina has come as a country. It would be easier to talk about tourism or exports as a sign of confidence and growth of the country. However it is my guess that most people, unless directly involved in said industries don’t know or care very much about these topics. Instead I think it would be interesting to do a study of something that relates to the people and their daily lives: Taxis. “And the money Kept rolling in (and out)’ mentions how Argentina’s taxis during the period of hyper inflation, would charge according to a scale of numbers. These numbers would then correspond to a price given on a chart that might change more than once a day. It would not have occurred to me that taxis and their charging methods could be used as an economic indicator. This correlation was even more interesting because I had just returned from a trip to Uruguay, where that is how they continue to determine fares. With out any research as to the state of Uruguay’s economy I feel like the knowledge of taxi fares gives me a starting point for a comparison between Argentina and its neighboring countries. The people of Argentina may not think of it now but I am sure that those who lived and worked during the periods of hyperinflation realize how good something as simple as steady taxi fares can be. I know personally even from one trip to Uruguay I am thankful for the general dependability and consistency of Argentine taxis. There will always be the individual who attempts to scam you, and that is true in any country or culture. But the very existence of a reliable and honest system in place says a lot about a country that has struggled greatly with those very characteristics.

Addendum:
Several weeks after writing this blog I decided to do some research comparing the economies of Uruguay and Argentina because I knowingly made some large assumptions from my observations. Interestingly enough CIA world fact book states Uruguay’s Inflation rate at ~10% and Argentina’s inflation rate at ~22%. Keeping in mind actual inflation rates and those published may not always coincide, this seems contradictory to what was suggested in “And the money kept rolling in (and out).” So there is a possibility that the system of charging for cab fares is unrelated to the economic state of Uruguay, or that it was once related and is simply an artifact of the economic down turn in the late 1990’s. And the answer is, as all ways in Latin America: It is complicated.

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