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Escy
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Quote Escy Replybullet Topic: I can't work Brazil out
    Posted: 14 June 2012 at 16:37
I've recently moved to Joao Pessoa, maybe it's different elsewhere but I can't understand how the economy works here.

Everything seems more expensive than it is in the UK, some of it is over twice the price. The weekly supermarket shop, clothes, cars, fuel, furniture, all electrical appliances, etc. Basically everything (this country is such a rip off).

Granted Property/land is cheaper, but it's rising all the time and seems to have doubled over the last 5 or so years, now it's not too far behind Europe i'd say.

The minimum wage is low and as far as I can tell, lots of people earn that or pretty close to it. If you compare similar jobs to the UK, the wages are significantly lower.

There is lots of cars in JP, even older cars are expensive. What i'm struggling to understand is how so many people with jobs that don't pay well can afford decent cars.

I'm assuming it's finance but the rates on loans here are absolutely horrific (35% plus). You'd get a lower rate from a loan shark in the UK. Brazil seems to love finance, there is nothing you can't pay for over 10 instalments

There are loads of apartment buildings getting built here, i'm looking at it wondering how long before supply will outstrips demand.

I'm no economist and maybe i've missed a few fundamentals but on the face of it, low wages, high costs and sky high finance rates are a recipe for a recession aren't they? Is the bubble going to burst as I can't see how it's sustainable.
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Amsterdam
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Quote Amsterdam Replybullet Posted: 14 June 2012 at 17:10
Escy
You probably wont get too much sympathy on this site because most people live in the South of Brazil and there are huge differences i think in prices and culture.
People travel there to buy things because its so expensive up here, Tyres for example. Cars aswell i think.
Welcome to the Northeast of Brazil, it will take a a little while for you to get acustomed to the place. Afew years ago food prices were lower but they have steadily increased, they increase apparently with Basic Salaries, which are now around 620 or so i believe, they used to be around 350 when i arrived here.
 
People are taking their money out of the banks, as the interest rates are falling and investing in property. How long that lasts who knows, but thats whats fueling the building and development boom. As well as lower mortgage rates and loan facilities available also.
 
Brazil has always had a YoYo economy, but who knows what the future holds in store. Its going in the right direction, if you came here afew years ago, you would have been really confused, its gotten alot better believe it or not. I used to think as you do and still do, but things are balancing out more now with redistribution of wealth so the poorer folks are able to get finance.
 
Cant remember exactly but it used to be something like 10% of the Brazils elite controlled 80% of the countries wealth, so a little unfair. Brazil will now go through a social as well as economical change.
 
 


Edited by Amsterdam - 14 June 2012 at 17:47
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hpeak13
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Quote hpeak13 Replybullet Posted: 14 June 2012 at 17:17
This is kind of a never ending debate. You CAN find cheap stuff. Meat and veggies are pretty cheap I'd say, if you want imported stuff from home then it will be more expensive.

For clothes I go to both Taco and HRNG, jeans are more than I'd like them to be but at HRNG I just loaded up on tshirts (each running r21, so not bad)

I think cars are expensive for what you get for the price compared to the states, but I thankfully haven't had to give in and buy one yet.

In rereading your post, are you wondering about the cost of things in general or expats? Because in BH I there wasn't much mixing of the financial classes- there are nice bars in Savassi/Lourdes/ ST Antonio and then there are the dirty dive bars....and each has their own set of customers.

for food a quick look on wikitravel gave these options:

Vale do Sabugi, Rua Carlos Alverga, Tambaú (Enter from the beach front near Portugal Flat). Lunch. Buffet with grilled meats R$ 6.

Mangai, Avenida General Edson Ramalho 696, Manaíra. All day. Large buffet of reional foods. R$ 30 per kilo.

not too expensive
We all have to decide for ourselves how much sin we can live with. -Enoch Nucky Thompson
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man of leisure
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Quote man of leisure Replybullet Posted: 14 June 2012 at 17:36
Originally posted by hpeak13

You CAN find cheap stuff.

Cheap meaning rubbish, poor quality in the context of your statement, but then being the same price as similar but better quality goods found in the UK.

The answer is simple. The interest rate and economies of scale. The bank lending is expensive here so business need to pass this on accordingly. Then we turn to scale. Wal-mart and Tesco can work on 10% mark-up because they move volume by the millions. Lojas Americans et al work on a 70% mark-up because they move volume in the thousands (or less) yet have the same or higher operating costs as their US/UK counterparts. The middle-class is emerging in Brazil but is not yet in sufficient numbers (and not, therefore, buying goods in sufficient volume) for the seller to consider reducing the mark-up.


Edited by man of leisure - 14 June 2012 at 17:38
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hpeak13
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Quote hpeak13 Replybullet Posted: 14 June 2012 at 17:42
Originally posted by man of leisure

Originally posted by hpeak13

You CAN find cheap stuff.

Cheap meaning rubbish, poor quality in the context of your statement, but then being the same price as similar but better quality goods found in the UK.



actually no. I was referring to the price. Bought a pair of Addidas shoes the other day for r200.....that's about the same as the states. And the shirts I got from HRNG are fine.
We all have to decide for ourselves how much sin we can live with. -Enoch Nucky Thompson
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Quote Mineiro_Alemão Replybullet Posted: 14 June 2012 at 17:46
Originally posted by man of leisure


Cheap meaning rubbish, poor quality in the context of your statement, but then being the same price as similar but better quality goods found in the UK.



But unfortunatly it´s not that simple.
Because expensive does not automatically mean GOOD QUALITY ! Ouch

Lot´s of expensive stuff is also rubbish, just the marketing is better ! LOL



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nikkij12185
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Quote nikkij12185 Replybullet Posted: 14 June 2012 at 17:51
Originally posted by hpeak13

This is kind of a never ending debate. You CAN find cheap stuff. Meat and veggies are pretty cheap I'd say, if you want imported stuff from home then it will be more expensive.

For clothes I go to both Taco and HRNG, jeans are more than I'd like them to be but at HRNG I just loaded up on tshirts (each running r21, so not bad)


Taco is a worse version of gap and the jeans wear out faster, if you wash them regularly.

The HRNG tshirts my husband has are worse quality than what I would buy at Target or Kmart for the same price or less in the US.  Comparatively, they are also MUCH more expensive.

Salary R$620  - R$21 = 3% of your monthly salary

Min wage in Boston R$10/hour.  40hours X 4 weeks = $1600 minimum wage
$8 Tshirt = .05% of your salary.


Much more people earner minimum wage or close to it here than they do in Boston.

That is the difference that a lot of people don't understand, and what a lot of people find confusing.


Living to the same lower-middle class (public transport, cheap/mostly home cooked meals - that aren't uniquely rice and beans, decent clothes, decent soaps) standards is much more expensive here.
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Quote nikkij12185 Replybullet Posted: 14 June 2012 at 17:52
Public transportation is the king of all examples.

My bus in Rio is R$3.30. ($1.65). Longer distance bus R$5.95 - $11.00 (US $3.00-5.50) Metro is R$3.20 (US $1.60). Metro + municipal "train" or bus to make up for the lack of service R$4.80 (US $2.40)

More often than not the bus, train, metro brakes, get stuck, etc.  Just the other night one crashed into a wall.  Employees only get paid R$800-R$1000 while their counterparts in Boston make 60-70K easy.

YET, a bus in Boston is $1.25.  Long distance/intermunicipal bus $2.80-$4.00. FUNCTIONING metro that has more than one line and doesn't require a second fare or "bilhete unico" = US $1.70.

On top of that - in Rio I can prepay my fares and only combine them IF it doesn't take me 2 hours to get to my second bus and my card works and the moon is in Jupiter.

In Boston, the UNLIMITED bus pass is $40 and the UNLIMITED bus + subway pass is $59.  I used to take the commuter rail 40 miles to a trolley to the subway to the bus for way less per month than I fork out living IN Rio (and not that far from the center).

THINGS LIKE THAT make me think Brazil is EXPENSIVE.
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Escy
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Quote Escy Replybullet Posted: 14 June 2012 at 17:52
I eat out lots here. I'm not looking for cheap places. I'd say in terms of eating out, for the same quality food, prices are pretty much the same as the UK.

As for Joao Pessoa being cheaper than the South of Brazil, might be worth re-searching that some more. Cars are significantly cheaper in Rio and Sao Paulo going by prices advertised on the internet. Someone on this website bought furniture from here to send to the south also so that suggests it's not just cars.


Originally posted by Amsterdam

things are balancing out more now with redistribution of wealth so the poorer folks are able to get finance.


With interest rates on finance ranging from 35-50% lots of the time, i'm inclined to suggest the rich are getting richer and the poor are staying poor.


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Quote nikkij12185 Replybullet Posted: 14 June 2012 at 17:54
Originally posted by hpeak13

Originally posted by man of leisure

Originally posted by hpeak13

You CAN find cheap stuff.

Cheap meaning rubbish, poor quality in the context of your statement, but then being the same price as similar but better quality goods found in the UK.



actually no. I was referring to the price. Bought a pair of Addidas shoes the other day for r200.....that's about the same as the states. And the shirts I got from HRNG are fine.


When was the last time you went to the US?  Run of the mill Adidas are about $50-60 at Kohls.  Yes, there are more expensive models at fancier stores that you might have bought (as there are much more expensive models in Brazil) - but lets compare Apples to Apples here.
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