Thursday, September 5, 2013

Hey Krugman, The McDonald's Dollar Menu Is About To Become "The Dollar Menu & More"

McDonald's Corp. says  it has been testing higher priced versions of its famous value menu.

The Dollar Menu & More that was tested has three price points -$1, $2 and $5 or "shareable" items such as 20-piece McNuggets. Another version that was tested has prices of $1, $1.79 and $4.99.

Earlier this year, Wendy’s revamped  its 99-cent menu to a “Right Price Right Size” menu, with prices ranging up to around $2.

Sure looks like signs of price inflation, not deflation, to me.


  1. In Canada, the $5 Hot n' Ready at Little Caesars is now the $5.55 Hot n' Ready at Little Caesars.

    11% inflation right there.

    1. In Santa Cruz County, California, the $5 Hot n' Ready costs $5.99.

  2. (McD's jingle]: Ba da ba da daa DAH! Krugman is loving it

  3. Don't forget about the "grocery shrink ray" (a phrase made famous by that makes cereals and snacks smaller for the same price. Nor the fact that many fast food restaurants have started using lower quality beef and chicken.


  4. Anyone else noticed the Chipotle burrito getting smaller? They used to be the size of a common brick. Now they're a third smaller. Shove that in your pie hole Krugman!

  5. Sure, the prices of food and gas have gone up a lot in the last few years, but you're also making almost exactly the same amount of income as before, so inflation is still very low. That's the magic of aggregates.

  6. No no, you see, when the price of steak gets too high, people swap it with ground beef and pay the same price. The basket of goods costs the same! No inflation!

    But then when ground beef got too expensive, they swapped it with horse meat. Anti-inflationary theory in action! It's right in front of you!

    Also, they are just raising the prices so they can pay everyone $20 a hour to take out the garbage and sweep the floor.

    Sheesh, it's obvious, isn't it?

  7. Krugman's (Keynesian) solution: Burn down all the Micky D's. Think of the new jobs created rebuilding all those restaurants... Happy days are here again!