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higher by taking a hard approach to spending and social programs . Increased taxes on high-income earners , lowered interest rates , and raising the minimum wage has improved employment opportunities yet with it has come greater inflation through personal spending . Many Argentines don ’ t see the point in saving as poor bank interest as well as high inflation means savings often deplete over time . This has driven a culture of spending that has led to an often-misguided view that the micro economy is in good condition , explaining the high-end luxurious apartments , lavish restaurants , and generally high spirits of the people of central Buenos Aires . It ’ s somewhat different further out in the suburbs or regional centres , an example as we discovered was a chicken restaurant that couldn ’ t afford chicken and was substituting it with ground beef . Restaurant prices also seem to fluctuate as quickly as the national economy as owners are forced to adjust prices based on daily costs of running the business .
Whilst there ’ s no feeling of discontent amongst the back streets , there is a cautious viewing where locals will tell you not to leave things on your bikes as they often do go missing such is the value of foreign objects , especially United States dollars on the black market as current exchange rates are less than US $ 3.00 to 1000 pesos . The people of these areas suggest that the level of “ uncertainty within the political system is wearing thin ” and that the “ uncertainty means insecurity ” as the pesos has been artificially pegged at these rates rather than allowing the natural market to dictate the rate of exchange . A currency that runs in parallel has arisen where vendors secretly exchange pesos for US dollars illegally at a rate that is around double that of the official line . Carrying US dollars gives a level of economic power rarely witnessed in Argentina and most businesses will “ trade ” in it , especially higher value notes and those that are crisp and less worn .
It ' s a dilemma that came to a head in the lead up to the federal elections held during November . At the forefront was a politician new to the game , a man who modelled himself on an anti-establishment approach .
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