diversions

Burgernomics: The Big Mac Index

A ride on a city bus costs more than $7.00 in Oslo but only 7¢ in Mumbai.
The same iPad 2 that sells for over $1,000 in Buenos Aires can be picked up for half that price in Bangkok.
But when we really want to understand purchasing power, we look at global Big Mac prices.

A Big Mac is a Big Mac wherever you go.
The McDonald’s Big Mac is an ideal indicator. With a few accommodations to local tastes, it’s the same sesame seed bun, same special sauce, same double beef patties, made to identical specifications by all of the company’s franchisees around the globe. Unlike transit or tablet computers, the Big Mac includes inputs from a wide range of local area sectors from agriculture to advertising, and hires a mix of white and blue collar workers.

A theory of burger-buying parity
The Big Mac Index has been published annually in The Economist since 1986. The index demonstrates the purchasing power of consumers around the globe by converting the world’s currencies to a hamburger standard. Purchasing parity would mean that every consumer world-wide is paying the same equivalent price (in their local currency) for a Big Mac. If you’re paying more than the fair-value burger benchmark, you live in a country with an over-valued currency; conversely a cheap Big Mac signals an under-valued currency.

Travel across the European continent and the power of currency valuations comes to life. A mere 17 Ukrainian hryvnias (the equivalent of $2.11) gets you a burger in Kiev; hungry in Hungary and you’ll spend 645 forints ($2.63), while in Copenhagen the same Big Mac costs more than double that amount ($5.37) in Danish krones.

The Big Mac Index locates most of the world’s under-valued currencies in Asian countries—no big surprise to anyone who shops at big box discount retailers like Wal-Mart and Costco where more than 90% of the merchandise can come from China. Taiwan, Indonesia, China, Malaysia, and Hong Kong are all under-valued by more than 40%. India, home to the index’s cheapest burger, the $1.62 Maharaja Mac, also has the cheapest currency, the 60% under-valued rupee. Switzerland and Norway top the list with the priciest Big Macs, quadruple the cost of an Indian burger ($6.81 and $6.79), and the most over-valued currencies (62% ).

You can see the full data set here.

 

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Drinking Liberally: This Ain’t No Tea Party

Are you wearying of the Republican primary marathon?
Sure, it was amusing at first watching the Perry and McCain gaffe machines, but lately all the fun has gone out of it. The incessant finger pointing and negative advertising is enough to try the patience of even the most committed political junkie.

This would be a fine time to connect with your local chapter of Drinking Liberally.
Drinking Liberally is an informal, nonpartisan social gathering where left-leaning individuals can go to share a drink and a little political chit chat.

There are currently 227 Drinking Liberally chapters in 47 states plus a few overseas chapters for expats. Each meets at a regular bar or pub and at a regular time each week or month. Drinkers aren’t necessarily policy wonks, or even members of the Democratic Party, and progressive political discourse tends to be just a starting point for a night out with like-minded friends and strangers.

Think about the last Republican debate.
You probably sat at home with your head ready to explode from the especially inflammatory and preposterous candidate statements. Instead, you could have gone to a Drinking Liberally debate-viewing party where everyone is welcome to vent their outrage among friends, boo at the screen with every mention of Obamacare or debt ceiling, and empty their glass when Ron Paul talks about the Federal Reserve.
Drinking Liberally makes activism fun.

Promote democracy one pint at a time.
Find a Drinking Liberally gathering near you.

Drinking Liberally is a project of Living Liberally, an organization that builds progressive communities through social networks and events. You can also engage through the political comedy fans of Laughing Liberally, attend a film with Screening Liberally, have a good meal and conversation with Eating Liberally, and discover progressive authors with Reading Liberally.
Conservatives don’t have nearly this much fun.

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The $1,000 Coffee Break

image via Visual Photos

Work perks.
Staffing firm Accounting Principals, which has just published its Workonomix Survey of workplace spending, found that 50 percent of the American workforce has a $20 weekly coffee habit, spending $1000 a year on workday coffee. Most consider it money well-spent.
Younger workers (ages 18-34) spend almost twice as much on coffee during the workweek as their older colleagues ages 45+: $24.74 vs. $14.15; men outspend women: $25.70 vs. $15.00.

The coffee break is a vaunted worker tradition. Legend has it that the world’s first coffee break took place around 1000 A.D. in Abyssinia, today’s Ethiopia. Long before the power and pleasure of the coffee plant had been discovered, a goatherd noticed his goats dancing around after eating its red berries. Following the goats’ lead, herders began indulging in the berries to stay awake during the long, boring stretches of watching the herds.

The coffee break first appeared in the U.S. in Stoughton, Wisconsin (home to the Stoughton Coffee Break Festival held every August) when the wives of 19th century Norwegian immigrants agreed to cover their husbands’ work shifts on the condition that they be allowed morning and afternoon breaks to go home to tend to household chores and brew up coffee. It was formalized as a workplace ritual in 1902 at the Barcolo Manufacturing Company of Buffalo, NY (rather appropriately, the manufacturer of Barcalounger recliners). In 1964 the coffee break was etched into U.S. labor history when negotiations between the United Auto Workers and the big three automakers nearly broke down over the practice. Other issues at those historic negotiations included health insurance, retirement benefits, and a 5% raise, but it was the coffee break that nearly brought about a strike. 74,000 workers at Chrysler came within an hour of walking off the job when the company relented and agreed to a 12 minute daily coffee break.

Did you know…
the espresso machine was invented in 1901 by an Italian factory owner as a way of speeding up his employees’ coffee breaks?  The first espresso machine, the Tipo Gigante, used a combination of steam and boiling water forced through coffee grounds to make a cup of coffee quicker than any other method in use.

The Coffee Break App for Mac can be set to remind you when it’s break time. It darkens your computer screen for the duration, lighting up again when break time’s over.

 

 

 

 

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The GOP Candidates: You Are What You Eat

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Undisciplined, unpredictable, and unapologetically falling to temptation— that’s Newt Gringrich. He knows he should watch his waistline, but sometimes he just can’t help himself when it comes to ice cream.

Rick Santorum loves his beer, resolutely but conditionally. He has judged the stouts, the bocks, the white ales and the wheat beers to be worthy; IPAs don’t pass muster.

Ron Paul eccentrically puts it all out there with a family cookbook. The recipes are unfettered by contemporary dietary concerns and restrictions: pork tenderloin is sauced with an entire block of cream cheese; another block is the binding for a little something called Oreo Truffles; and the book makes liberal use of Velveeta, pudding mixes, and bottled dressings. Salt and additives, good fats and bad; it’s not his place to infringe on your personal liberties.

And Mitt Romney’s favorite food? Ever the political chameleon, that seems to depend on who’s doing the asking. He has previously cited chocolate milk, pretzels, peanut M&Ms, hot dogs, meatloaf, and Cocoa Puffs cereal. He often attempts a common touch, tweeting about a chicken sandwich at Carls Jr. and declaring a pulled pork burrito is “better than filet mignon,” but unlike the everyman he hopes to evoke, he removes the crispy skin from his fried chicken and pulls the cheese off the top of pizza slices.

   Tell me what you eat, and I will tell you who you are.
                                   (Jean-Anthelme Brillat-Savarin, The Physiology of Taste)

 

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Supermarket Waste: Where Does the Old Food Go?

image via Scary Mommy

The out-of-date yogurt cartons, the dented cans, the misshapen potatoes that shoppers passed over.
There’s a lot of activity behind the scenes and after hours at your local supermarket. Employees strip the shelves of brown bananas, opened boxes, broken jars, and stale muffins. They take the past-peak quality produce and meats to the deli or the salad bar and recycle them into prepared foods. They also remove packaged foods approaching their expiration dates—still perfectly good, but who’s going to buy a 5-pound block of cheese with 3 days left?

The good news is that more food than ever is finding a second life.

Wholesalers and supermarket chains have set up reclamation centers that operate as clearing houses for products considered unsaleable by the stores. The centers are filled with Christmas cookies in January, Valentine’s chocolate in March, and a year-round assortment of products that are nearing their sell-by dates or have packaging that has since been updated by the manufacturer. Much of it is shipped off to dollar stores and discount grocers, two categories that have become important to the food chain in our current economic state. There you’ll find an ever-changing assortment of foods—items discontinued by manufacturers, unfamiliar regional brands, foods labelled for export, and plenty of familiar and even high-end products all offered at highly discounted prices.

Food banks are another outlet for unsaleables, and most supermarket chains and reclamation centers participate in some sort of hunger relief program. The passage of the Good Samaritan Food Donation Act encourages participation by protecting the stores and distributors from criminal or civil liability around issues of food safety. The FDA also enthusiastically supports the practice and has even emphasized that other than baby food and formula, most food expiration dates refer to the point when a product’s taste, texture, color, or nutritional benefits start to deteriorate rather than the point when you need to worry about the product’s safety.

Americans waste a lot of food—more than 40% of  all we produce. According to the The Natural Resources Defense Council if we wasted just 5 percent less food, it would be enough to feed 4 million Americans; 20 percent less waste would feed 25 million. This is indefensible at a time when both food prices and the number of Americans without enough to eat continue to rise.

On his Wasted Food website, Joanathan Bloom has a lot to say about food waste and what we can do about it.

AlterNet grades the food waste handling of Wal-Mart, Safeway, and other top grocery chains.

 

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