When I'm on the road and am hungry at lunch, sometimes I stop at McD's and order a hamburger and nothing else. They always ask, just a hamburger??? It used to be .99. Now its .83. That's quite a big drop.

If the McD's index around the world is some measure of value, is this a measure of deflation also?





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1 Comment so far

  1. Anand on July 31, 2015 5:38 pm

    Its called the Big Mac Index though, as the flagship Big Mac burger price is used rather than prices of their subsidiary burgers like a hamburger.

    The hamburger has always been a ‘cheaper option’ and therefore offer a way for McDonalds to ‘price discriminate’ and offer a product to those really counting the pennies/eating a snack (yourself) or small children. I assume this price is instable as McDonalds would play around with it as a loss leader / use it to get the youngsters addicted while they are impressionable and so on.

    It could be useful to monitor this price in the various geographical areas (or the widening spread between the Big Mac and the hamburger) as a sign of widening inequality levels perhaps?

    More importantly though I would advise you to steer clear of this stuff altogether .. after eating McDonalds I always feel a bit queasy and cant help but feel a slimy chemical trail running through my digestive system. Eat healthy and concentration levels, energy and general feeling of wellbeing go up.


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