U.S. Baby Boomer Gentrification Wreaks Havoc on City in Socialist Ecuador

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U.S. Baby Boomer Gentrification Wreaks Havoc on City in Socialist Ecuador - Breitbart

by Frances Martel 8 Jun 2017

The small city of Cuenca, Ecuador is struggling to address a growing wave of American “Baby Boomers” who have decided to retire there to take advantage of a socialist welfare state designed for its locals.

U.S. retirees, a recent city study revealed, are also causing conflict in the city, raising real estate prices, demanding English-language service, and threatening to sue locals accustomed to more “casual” business contracts.

In a report this week, the Miami Herald highlights the blissful existence of upper-class white American migrants who have flocked to Cuenca, attracted by retiree blogs and news sites that emphasize the appeal of its temperate weather and inexpensive healthcare and real estate.

“In Cuenca, a city of about 350,000 people, they’ve found robust public transportation, an extensive museum network, solid healthcare and markets bursting with fresh fruits and produce,” the Herald notes. “It’s a place where their two-bedroom, two-and-a-half bath apartment costs less than $400 a month. They’ve found that for about $1,500 a month, they can live a solidly upper-class lifestyle, dining out frequently and traveling.” The newspaper notes that a bus ride for seniors costs $0.12, and medical procedures are orders of magnitude cheaper than they would be at home.

The city commissioned a study on its foreign population in February 2017 that identified the majority of these new Cuencans as “‘baby boomers’ who began retiring in 2010 and… 4 percent of this population, estimated at 78 million, is planning to retire abroad.” North American countries – mostly the U.S. and Canada – make up 93 percent of Cuenca’s foreign population.

Cuenca’s “boomers” are more likely to have been professors before retirement than any other occupations, with “executives” coming in second place. The study delicately notes that many of these individuals “are not interested in being part of a new culture, and are more interested in that the city and its people respond to their needs and demands.”

Paramount among the city’s concerns is that many Americans are demanding Cuencans speak English and creating English-speaking neighborhoods within the city. “There is a large group for which learning a language is outside of their interests and, faced with the frustration of not being able to communicate, express annoyance with Cuencans who do not tend to their demands in English,” the study reads, adding that the city has invested in Spanish and idiomatic dictionaries for the new residents, but this has not solved the problem.

Boomers are also annoyed by “the ‘slowness’ of service” in Ecuador compared to the United States, and the common use of verbal or informal contracts. “Cases have been reported in which retired foreigners suggest a lawsuit against those who have not completed a previously agreed upon work,” the report notes.

In addition to cultural tensions, the study notes that 65 percent of the native Cuencan population is under 35, and many are frustrated that they must pay taxes and invest in the welfare state that foreign retiree migrants are now abusing.

The Herald story, which cites some findings from this study, is the latest trend piece on Cuenca in a crowded genre. The Cuenca study followed years of anecdotal journalism noting the idiosyncratic Boomer wave moving south. The city of Cuenca, in a study published in February, found its foreign population grew 173 percent between 2001 and 2010. By 2012, outlets like the BBC were calling it an American “promised land.” That article traced the Cuenca viral sensation among retiree migrants back to an article on the website Gringo Tree, which in turn noted that the wave of thousands of American ex-pats hitting the city followed the 2009 publication of an article in International Living that described the city as “the top destination in the world to retire.”

At the time, Cuenca’s International Relations Director Dani Jara appeared pleased by the new influx of high spenders to her city. She told BBC, “Tourism we promote, one creates strategies for the medium and long term. But in the case of a migratory phenomenon, that is due to the city conditions. Cuenca has grown throughout its history into a city where one can live well.”

By 2013, Cuenca Mayor Paul Granda was describing the mass migrant wave as “a little complicated for us.” “The city is less accessible to Ecuadorians” due to the wealthy Americans flocking there, he argued to ABC News, noting that average prices of basic goods had increased 40 to 50 percent.

Two years later, Ecuador’s Secretary of the Vice Ministry of Human Mobility was warning of wealthy American “ghettos” threatening the character of Cuenca. “There should not be ghettos forming in zones where Americans live, versus those who live permanently in these places,” Humberto Cordero said. The migration, he urged, “must be regulated.”

Cuenca’s American invasion was not regulated, in part because local businesses and real estate owners preferred selling and renting to Americans. “They care for their spaces and pay what is fair,” Cuencan homeowner María Torres told Ecuador’s El Comercio newspaper last year. She noted that their comfortable economic status and lack of children made for quiet, reliable tenants.

The government has nonetheless continued to express concern over American migrants overrunning the city. New International Relations Director Ana Paulina Crespo told the Herald in this week’s column that “Cuencanos are feeling like strangers in their own city” and emphasized, “Cuenca never wanted to attract retirees… we’re facing lots of problems over how to deal with a phenomenon that we aren’t responsible for creating.”
 

Figures, Deep...bunch of lefty college professors expecting the world to bow down before them. All the lefty crap about equality shows it's ugly reality. What's really disgusting is these people have really great pensions, and Social Security, and still expect to get services on the cheap. And the demand they place on the local resources will drive up prices for the locals who are probably much less well-off.
Jim
 

Figures, Deep...bunch of lefty college professors expecting the world to bow down before them. All the lefty crap about equality shows it's ugly reality. What's really disgusting is these people have really great pensions, and Social Security, and still expect to get services on the cheap. And the demand they place on the local resources will drive up prices for the locals who are probably much less well-off.
Jim

Did we read the same article? Where did it say they were "lefty"? I have no idea what difference it makes whether or not someone has a pension and chooses a lifestyle where goods and services are "cheap". Most people do that by retiring in Florida. Somehow, you call it disgusting. I call that smart planning for a well deserved happy retirement.
 

Please tell me, Ben, just how many conservative college professors there are? in case you're not aware...not many.
And yeah, I call it disgusting when my tax dollars were spent to pay them, and now being spent for their pensions, and the money isn't spent in their own country. Typical greedheads, that the left claims to hate.....unless it's their own.
jim
 

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I posted this because of the options "us" older folks face - possibly living more luxuriously in our retirement. I've been thinking Costa Rica - one of my oldest and best friends retired there, lives inexpensively in luxury - with great healthcare.
 

Well, I'm going home with the girl that brought me. My savings and SS are going to get spent right here in the US. If I have to live poor, so be it.
Jim
 

Yeah, we need ENGLISH (spoken/written) EVERYWHERE! AND! If one is living in the USA, English should be REQUIRED (MHO). :icon_thumleft:
 

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I have done a lot of research on Cuenca, you can live like a good life on $2000 a month and even considered retiring there my self.

Their currency is the US dollar, import tax can be waved on household goods or work equipment brought into the country for those moving to Ecuador.

I am planning a trip to Cuenca myself to check it out. The city is located in the Andies and sits at an altitude where you don't actually need AC and very little heat. In my research I found a 3 year old home just 15 mins by car outside of town I could lease that was 3 bedrooms, 2.5 baths all tile, fully furnished including an in ground pool for $600, and get this, that includes ALL utilities.

The government actually encourages foreign retirees.

Retiree benefits for foreigners by the Ecuadorian government.

"If you’re 65 or older and looking for an incentive to retire overseas, take a look at what Ecuador can offer you. Unlike Panama’s pensionado program, which is aimed at foreign residents, Ecuador’s senior citizen discount program is intended to help its own citizens.
However, because the country’s constitution guarantees foreign residents the same rights as citizens, you can enjoy the same benefits as locals.
And the Ecuadorian Constitution actually guarantees those rights. Articles 36, 37, and 38 detail specific rights and protections for men and women 65 years and older—what Ecuadorians call tercer edad, or “third age.”
These articles spell out prioritized treatment and protections that include:

  • Specialized healthcare free of charge and free access to medicines
  • Tax exemptions on some municipal and utility taxes
  • Exemption from notary and registration fees
  • Preferential care in cases of disasters or emergencies
  • Special care and assistance for those with chronic or degenerative diseases
…and much more. The Constitution also states that abandonment or mistreatment of the elderly by relatives or institutions is punishable by law.
Of course, what gets the most attention, and what expats are most likely to be taking advantage of, are the benefits covered in Article 37, Item 4—“Discounts in public services and private transportation services and entertainment”
Here are some of the items included in Ecuador’s over-65 discount program:

  • 50% off public and private transportation within the country (including the Galapagos—by the way, just having a National Identity card gets you a 90% discount on the park entry fee).
  • 50% off tickets for all cultural and sporting events, including movies.
  • A discount on electric and water bills.
  • Free domestic landline phone service (does not include long distance and other services).
  • Reductions in a variety of taxes, including rebates of a portion of sales taxes (these vary according to goods or services purchased).
Although not officially part of the government’s program, one of the most popular discounts for foreign residents is the 50% airfare reduction (airfare only, no discount on airport fees, fuel surcharges, tax, etc.) for international travel offered by airlines such as Avianca, Copa Airlines, LATAM, and Ecuador’s Tame. All offer flights to the U.S. as well as other countries. The discount applies to round-trip tickets purchased in Ecuador for flights originating within the country.

You also must purchase the tickets in person at one of their ticket counters or with a certified Ecuadorian Travel Agent, to present verification of age. The discount is available to all citizens and residents over the age of 65.

The cherry on top of retiring to Ecuador is that citizens and residents over 65 won’t waste a lot of time standing in line. If you’re a senior citizen, when you make a bank deposit or pay your utility bill, you will find there is a special line for “tercer edad.” Likewise in grocery stores, but even if there is not a special line, you may just go directly to the head of the line…so you’ll have more time to relax and enjoy your retirement in Ecuador."


Summary about cost of living in Cuenca:

  • Four-person family monthly costs: 1,584.69$ without rent (using our estimator).
  • A single person monthly costs: 437.13$ without rent.
  • Cost of living index in Cuenca is 55.64% lower than in New York.
  • Cost of living rank 386[SUP]th[/SUP] out of 508 cities in the world.
  • Cuenca has a cost of living index of 44.36.


Sticky Currency Switch to metric measurement units
Restaurants[ Edit ]Range
Meal, Inexpensive Restaurant3.50 $
2.50​
-5.00
Meal for 2 People, Mid-range Restaurant, Three-course19.25 $
15.00​
-25.00
McMeal at McDonalds (or Equivalent Combo Meal)6.00 $
5.00​
-6.50
Domestic Beer (1 pint draught)1.38 $
1.00​
-2.00
Imported Beer (11.2 oz small bottle)3.00 $
2.00​
-4.00
Cappuccino (regular)2.12 $
1.50​
-2.50
Coke/Pepsi (11.2 oz small bottle)0.84 $
0.50​
-1.50
Water (11.2 oz small bottle)0.48 $
0.33​
-0.75
Markets[ Edit ]
Milk (regular), (1 gallon)3.95 $
3.22​
-5.12
Loaf of Fresh White Bread (1 lb)1.69 $
1.13​
-2.27
Rice (white), (1 lb)0.53 $
0.50​
-1.00
Eggs (12)1.82 $
1.25​
-2.20
Local Cheese (1 lb)1.91 $
1.70​
-3.00
Chicken Breasts (Boneless, Skinless), (1 lb)3.46 $
2.50​
-3.86
Beef Round (1 lb) (or Equivalent Back Leg Red Meat)2.60 $
1.81​
-4.25
Apples (1 lb)1.16 $
0.45​
-3.50
Banana (1 lb)0.42 $
0.30​
-0.68
Oranges (1 lb)0.75 $
0.45​
-1.13
Tomato (1 lb)0.51 $
0.45​
-0.68
Potato (1 lb)0.46 $
0.23​
-2.00
Onion (1 lb)0.44 $
0.23​
-0.50
Lettuce (1 head)0.72 $
0.50​
-0.85
Water (1.5 liter bottle)0.86 $
0.50​
-1.50
Bottle of Wine (Mid-Range)12.00 $
10.00​
-18.00
Domestic Beer (0.5 liter bottle)1.07 $
0.80​
-1.50
Imported Beer (11.2 oz small bottle)2.38 $
1.75​
-3.00
Pack of Cigarettes (Marlboro)5.40 $
5.00​
-5.80
Transportation[ Edit ]
One-way Ticket (Local Transport)0.25 $
0.25​
-0.25
Monthly Pass (Regular Price)10.00 $
6.00​
-15.00
Taxi Start (Normal Tariff)1.50 $
1.35​
-1.50
Taxi 1 mile (Normal Tariff)2.33 $
1.61​
-2.41
Taxi 1hour Waiting (Normal Tariff)10.00 $
7.00​
-10.00
Gasoline (1 gallon)1.48 $
1.48​
-1.50
Volkswagen Golf 1.4 90 KW Trendline (Or Equivalent New Car)30,000.00 $
20,000.00​
-30,000.00
Toyota Corolla 1.6l 97kW Comfort (Or Equivalent New Car)32,666.67 $
28,000.00​
-35,000.00
Utilities (Monthly)[ Edit ]
Basic (Electricity, Heating, Water, Garbage) for 915 sq ft Apartment33.09 $
20.00​
-45.75
1 min. of Prepaid Mobile Tariff Local (No Discounts or Plans)0.15 $
0.10​
-0.20
Internet (60 Mbps or More, Unlimited Data, Cable/ADSL)36.93 $
25.00​
-70.00
Sports And Leisure[ Edit ]
Fitness Club, Monthly Fee for 1 Adult30.99 $
20.00​
-40.00
Tennis Court Rent (1 Hour on Weekend)6.00 $
3.00​
-10.00
Cinema, International Release, 1 Seat4.50 $
3.50​
-5.50
Childcare[ Edit ]
Preschool (or Kindergarten), Private, Monthly for 1 Child350.00 $
300.00​
-400.00
International Primary School, Yearly for 1 Child830.00 $
400.00​
-1,260.00
Clothing And Shoes[ Edit ]
1 Pair of Jeans (Levis 501 Or Similar)64.54 $
40.00​
-80.00
1 Summer Dress in a Chain Store (Zara, H&M, ...)58.00 $
45.00​
-70.00
1 Pair of Nike Running Shoes (Mid-Range)105.62 $
60.00​
-125.00
1 Pair of Men Leather Business Shoes61.11 $
35.00​
-80.00
Rent Per Month[ Edit ]
Apartment (1 bedroom) in City Centre324.33 $
250.00​
-500.00
Apartment (1 bedroom) Outside of Centre254.00 $
200.00​
-350.00
Apartment (3 bedrooms) in City Centre501.92 $
350.00​
-650.00
Apartment (3 bedrooms) Outside of Centre400.00 $
250.00​
-650.00
Buy Apartment Price[ Edit ]
Price per Square Feet to Buy Apartment in City Centre107.77 $
92.90​
-120.77
Price per Square Feet to Buy Apartment Outside of Centre105.68 $
92.90​
-111.48
Salaries And Financing[ Edit ]
Average Monthly Net Salary (After Tax)426.00 $
Mortgage Interest Rate in Percentages (%), Yearly7.50
4.00​
-10.00
Prices in Cuenca

These data are based on 720 entries in the past 18 months from 98 different contributors.
Last update: May 2017


https://www.numbeo.com/cost-of-living/in/Cuenca


Climate data for Cuenca, Ecuador
MonthJanFebMarAprMayJunJulAugSepOctNovDecAnnual
Average high °F69706969676665666970717168.5
Average low °F50515150494747464849464948.6
Precipitation inches21.83.24.34.31.70.91.11.63.11.82.528.3


 

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