Monday, August 24, 2009

The New Big Mac Index

Economist magazine reports:

The size of your pay packet may be important, but so is its purchasing power. Helpfully, a UBS report published this week offers a handy guide to how long it takes a worker on the average net wage to earn the price of a Big Mac in 73 cities. Fast-food junkies are best off in Chicago, Toronto and Tokyo, where it takes a mere 12 minutes at work to afford a Big Mac. By contrast, employees must toil for over two hours to earn enough for a burger fix in Mexico City, Jakarta and Nairobi

The strong rankings of U.S. cities may be partly an indication that the dollar is overvalued. Watch Shanghai over the next couple of years. The number of minutes it is going to take workers to buy a Big Mac there is going to shrink and shrink.

Do you want to know why Mexicans hike through the desert to find work in the U.S.? Check out how long they have to work in Mexico City to earn enough to buy a Big Mac.

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