Today I found out first-hand about the real price distortion in Argentina. I had to go for the first time to a new graduate program where I began teaching and, since I had no clue how long it would take to get there, I went there by car. Since someone took the only empty space in front of the University, I had to look for a parking spot around.Two blocks away, I found this horrid-dirty looking parking place ... $ 4.20 an hour (u$s 1.40). Fair enough, given the u$s 2 charged in mid-town. So I went to class - a nice enough group of lawyers doing a law/biz adm graduate program - and then went back to get the car. On my way back I prayed to God it would still be there, and it was. The problem was when I asked "how much?" and the guy took my ticket, put in a couple of numbers in the machine, and spat out "$ 11". I looked at the price list (yes, sue me, I am an accountant and work in pricing and planning) and said "it's wrong - 2 1/2 hours is $ 4.20 x 2 plus $ 2.10 - that's only $ 10.50". To which he replied "I gotta charge you what the machine says. It says $ 11." Faced with that undeniable logic, added to the fact my car was nowhere in sight, I payed up, asked for a receipt and as I climbed on my car mumbled "this is the first and last time I come here" - to which he replied "fine".
My conclusion: this was a description of economics of plentiness. What is that? Too many cars around, the parking lot was overflowing, and they still had room to increase prices before getting hassled by authorities. So, why care about me? I would be replaced instantaneously by another sucker. And then another. In a year of record car sales (300.000 during the first six months of the year), he might be right not to care. At least, ntil the next crisis and until he closes down the lot and puts up a 5 on 5 soccer court or paddle tennis or the next fad.
