Big Mac index for June 2020
October 31st, 2020 at 7:20:35 AM permalink | |
Pacomartin Member since: Oct 24, 2012 Threads: 1068 Posts: 12569 | Calculating Big Mac index for June 2020 A Big Mac costs £3.39 in Britain and US$5.71 or 3.39/5.71 = .59 At the same time the exchange rate was $1 = £0.79 , so US$5.71 would get you £4.51 So if we consider a Big Mac an essential purchase, the British pound is undervalued by (.59-.79)/.79= 25.1% Repeating that calculation for some primary currencies, and for some peso currencies we get. Switzerland Franc +20.9% United States US$ 0% BASE CURRENCY Canada C$ -11.1% Euro area Euro -16.2% Australia A$ -19.8% Britain Pound -25.1% Uruguay Peso -24.2% Argentina Peso -38.5% Chile Peso -39.1% Colombia Peso -42.4% Philippines Peso -49.7% Mexico Peso -61.0% This famous study of purchasing power parity has been going on for 34 years. It was meant to be more of a teaching tool, but it is widely quoted. My question is does this calculation show anything meaningful? McDonalds came to Mexico in November 1985 where it is wildly overpriced compared to native food. Labor is relatively cheap in Mexico. On Oct 31, 2020 $5.71 exchanges to 121 Mexican pesos. A basic "comida corrida" (food on the run) or four course cheap lunch with unlimited drink served between 2:00 and 4:00 in the afternoon in Mexico city is about 58 pesos (and much cheaper in a smaller city). There is no way that a Big Mac could sell for more 50 pesos. |
October 31st, 2020 at 7:39:07 AM permalink | |
AZDuffman Member since: Oct 24, 2012 Threads: 135 Posts: 18213 |
It does. For example, we often hear how much higher the minimum wage is in Australia to name one place. But without context what does it matter? Similarly, any American who has hopped across the Canadian border for an afternoon sees how hard making a conversion can be. Most of my life I have gotten about 25% more C$ than USD. It is generally accepted that most prices are higher in Canada. But the higher prices are hard to translate in the big picture. Even with how common Canadian and USA products are, not all is exact. If you try to compare with a grocery cart from each nation, you will have to compromise here and there. If you compare USA to EU it is worse, US to S Korea, fugheddabaddit. OTOH, a Big Mac is a Big Mac the world over with minor exceptions like India. Not only is the product identical, the retailer is. While it is not perfect, it is about as good as you will get. The President is a fink. |
October 31st, 2020 at 10:13:27 AM permalink | |
SOOPOO Member since: Feb 19, 2014 Threads: 22 Posts: 4178 | I can’t remember buying a Big Mac for the list price. Always 2 for $5, buy one get a free drink, or free Nuggets with purchase or some such. Plus we get coupons mailed to us which have other type offers.... I don’t think these offers are as prevalent in Europe, from my recollection. |
October 31st, 2020 at 11:14:07 AM permalink | |
Evenbob Member since: Oct 24, 2012 Threads: 146 Posts: 25011 | Had one bite of a Big Mac 40 years ago and spit it out. It has some kind of sickeningly sweet sauce on it and I don't eat sugar. Yuck. I'd eat a lettuce wrap Whopper any day. If you take a risk, you may lose. If you never take a risk, you will always lose. |
October 31st, 2020 at 1:15:13 PM permalink | |
DRich Member since: Oct 24, 2012 Threads: 51 Posts: 4969 |
I have never had a Big Mac. I only eat plain burgers with nothing except for cheese. Condiments to me are disgusting. I eat dry hot dogs and hamburgers. At my age a Life In Prison sentence is not much of a detrrent. |
October 31st, 2020 at 1:26:13 PM permalink | |
miplet Member since: Oct 24, 2012 Threads: 8 Posts: 975 | The price of a Big Mac varies from location too. It's $4.89 at my McDonald's. And $6.39 at SeaTac airport. $6.09 at the one closest to the Space Needle. $5.79 by Fisherman's wharf in San Francisco. "...remind me of clue: Colonel Mustard in the billiard room with the candlestick."- Derek Morgan |
October 31st, 2020 at 2:12:35 PM permalink | |
terapined Member since: Aug 6, 2014 Threads: 73 Posts: 11806 |
OMG I get all the good stuff on it making it a more healthy meal and it tastes better. Lettuce and tomatoes Sometimes we live no particular way but our own - Grateful Dead "Eyes of the World" |
October 31st, 2020 at 2:12:43 PM permalink | |
Evenbob Member since: Oct 24, 2012 Threads: 146 Posts: 25011 | I actually remember the first Whopper I had, it so impressed me. It was DT Grand Rapids and my mom bought it for me in 1964, 39 cents. It was the most fabulous burger I had ever eaten up to that point. I had to beg her, 39 cents was a huge amount when you could get a McD for 15 cents. If you take a risk, you may lose. If you never take a risk, you will always lose. |
October 31st, 2020 at 2:51:31 PM permalink | |
DRich Member since: Oct 24, 2012 Threads: 51 Posts: 4969 |
In general I don't eat fruits or vegetables. I only want to taste the meat and cheese, everything else covers it up. That is also why I don't use conddiments, it masks the taste of the food. I do plan on having a piece of Key Lime pie in Key west next week. That is the extent of my fruit eating for the year. At my age a Life In Prison sentence is not much of a detrrent. |
October 31st, 2020 at 2:59:08 PM permalink | |
Evenbob Member since: Oct 24, 2012 Threads: 146 Posts: 25011 |
They are very bad for you. Stick to fats and starch and sugar, that's the ticket. And lots of salt. If you take a risk, you may lose. If you never take a risk, you will always lose. |