Big-mac Index
According to the big mac index , we are now more expensive than the US. The big mac costs 3.64 dollars while in the US costs 3,57, in Australia 3,36 and in Japon 2,62!!!
Please, economyst and smart people who read my blog, what do you have to say about this?
This is sad for Argentina, it shows that we never learn anything, not even from the very recent 2001 crisis that lasted till 2003. Only 5 years have passed and we are back in our we-are-rich mode. We are paying 380 pesos to go to concerts, 10 pesos for a crappy burger, 80 pesos for a shitty t-shirt. Anyway, we all know how this is going to end, but we pretend that this time the party will last forever, like we did before.
Argentina is an endless Deja-Vú
24 comments:
From what I hear, it is a USA thing. Starbucks is way overpriced there from what I hear...now Big Macs?
starbucks it´s overpriced, like everything else!!!
This index doesn't really tell the whole story. For example, what are we to make of the fact that the price in Russia is $2.54 while at the same time Moscow is still the most expensive city.
IMO, Buenos Aires remains a very affordable city.
it is an affordable city, but becoming expensive really fast.
Well you Argentinians can't be beautiful and rich. One or the other; which do you want it to be?
well, me, I have double nacionality so I can be both!
Oh, you're a citizen from two nations now - I didn't realize that the Kingdom of Porteno issued passports to their citizens.
Thinking about it maybe Planet Porteno is more appropriate
hahahahhahah, you made me laugh
The Big-Mac index is not a useful tool for comparing Argentina against the rest of the world. As someone points out earlier, these big US brands come at a premium (price, not product). In dance music, it's not more expensive, just 5 years behind the times.
One of the reasons the Big-Mac index is not useful is because the product price includes an off-shore component that is relatively more expensive in Argentina. And it is felt to be more exclusive than say a Lomito, which is both better for you and more tasty.
Yep, Argentina is getting more expensive. The average wage (if you've got a real job) is 980pesos per month, going up to 1,200 apparently. But inflation is like 25%. So yes, Argentina is getting more expensive, just doesn't feel like everyone in the economy is making more money.
I'm always amazed at the amount of people here eating the crap at McD's when you could get a decent cut of meet for the same or less.
don't know about you but my grocery bill has gone thru the roof compared to a year ago!
I can't stand Burger King and all the US corporations and their Imperialism.
Wait, who makes Big Macs?
- MPM
Rchinn, big mac index is pretty accurate, of course there are exceptions.
Quickroute, is that your picture on your profile??? As for my bills, of course they have gone to the roof!!!
G manifesto, hhhahahha big MAC, MC donald´s!!!!
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Inflation is a major problem in Argentina, and I believe that the Bigmac index is a reflection of it. Your government pretends inflation is much lower than it is as well.
that's me alright - green around the gills thinking about Big Macs!
No doubt the Big Mac index can be useful for some things, but it's not in this case.
Quick example: one of my few guilty norteamericano pleasures here is a Snickers bar. I get it often enough to have checked the prevailing price across kioscos of all name and color in Palermo/Belgrano/Colegiales/Downtown, wherever.
The price varies from $2.85 to $4 in most cases, usually a little over 3 pesos, or about a dollar US, whereas in the US paying a dollar would be pricy; usually 60 to 80 cents. Point is that a price is determined by supply and demand WITHIN a single market.
In the US, a Big Mac has plenty of substitutes (read: shitty fast food), and MUCH more supply. Here McD's fills a niche market. People COULD get a burger everywhere, but they pay for the "US fast-food" image.
This is not to say inflation isn't totally out of control. 20-25% is ridiculous, and really just comes down to poor monetary policy (the peso needs to be allowed to rise more than it has under the K's, who keep it down to keep exports fueling growth.)
AVERAGE prices in Argentina are still quite low, but always with the caveat that "Industria Argentina" will always be cheaper than imported goods, and there's a LOT of variance. A milanesa napolitana that, in my supermarket, costs me 7-10p, is in the US -- even at a supermarket if they had it -- probably 8-12 dollars. That's more than 3 times the price. In a restaurant, veal parmesian -- basically the same -- is one of the most expensive things on the menu.
The fallacy of the Big Mac index is that it claims to be an identical product everywhere, but price is not determined by the product quality, it's determined by supply and demand.
Beef here has big demand, but it has MUCH bigger supply, so it's still very cheap. In the US, not so.
End long comment. Sorry for so much, but damn, this shit is precisely why I came here. No hay monedas? That's a symptom of a REAL problem: when your central bank can't figure out how to have sufficient coins in circulation. All very interesting, if frustrating for the colectivos.
Chau!
Davíd
Aaron, Hola, see you soon ( I hope)
Quickroute, you look great then.
Todo una farsa. wow you gave us a lecture, thank you for all the info.
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buenos aires is def. affordable. besides, who needs to go to mcdonalds when you can go to so many amazing affordable independent restaurants/cafes?
Personally, I think McDonald's sucks and people that eat Big Macs end up paying for it in some way, either in hard-earned cash because it's post-ironic chic, in hectares because they cut down rainforests to grow grains as feed and raise cows, or because it's fucking terrible for your body, adds whole numbers to your waistline and raises your blood pressure like a bad argument at a bar. In one way or another, you're getting what you pay for: shit. So do us all a favor and hit that local parrilla instead!
well, this is not a post about eating in mc donald´s. But anyway I agree that is not good for you health
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Sorry to clutter your comment space with a totally irrelevant question, but I'm visiting BA for the first time and have run into what seems to be a question of etiquette that I can't find an answer to. It has to do with beer. I'm renting an apartment (in Barrio Norte), and whenever I buy a bottle of beer at the mercado around the corner, the woman who sells it to me says something I can't understand. Of course, I speak no castillano, so this is understandable. It seems like she's saying something about "envases," which I suppose means something like what we'd call a "deposit" in the US, which is like 2p per bottle. That seems like a lot for a bottle, but the thing that bugs me is that she seems like she's scolding me, as though I'm doing something wrong. Is she expecting me to return the bottle I bought the night before, or am I doing something else wrong? Thanks to Diva or anyone else for guidance on this sensitive cultural issue. Great blog, by the way!
@ Bradley: I'll jump in cos I happened to be in the neighbourhood. Yes it's a deposit system to encourage recycling.
Bring back your empty bottle and get your beers for 2 pesos less and she'll smile at you from now on!!
Hi bradley, that was a very cute question!
Quickrout, thank you for being such a nice guy!
Thanks Quickroute & Diva -- I'll drink my beer with less guilt now that I know how to keep everyone happy!
and you´l ve saviung 2 pesos for each bottle you drink!
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