BIG MAC INDEX A look into purchasing power from the standpoint of a Big Mac HISTORY • Introduced in 1986 by Pam Woodall in The Economist. (Paper in London) • It started as humorous, but is now a popular way to observe purchasing power from country to country. WHY IT WORKS • BIG MACS are sold in 120 states • Prices of the exact same McDonald's burger can vary big time from country to country • By observing the BIG MAC we have a single constant product which allows us to compare prices and PPP. A LOOK AT THE NUMBERS • Roughly 2.5 million BIG MAC’s are consumed every day • That’s over 900 million BIG MAC’s each year! • 47 billion have been eaten worldwide • One man has eaten 26,000 on his own. His name is Don Gorske IN COMPARISON BIG MAC Index PPP • The BIG MAC index is a fun way to • Economic theory used to determine compare the value of different the relative value of currencies currencies around the world. • Estimates exchange rate between • By looking at the prices of BIG MAC’s countries in order for the exchange to we can see which countries have more be equal to the currency's purchasing purchasing power. power. A HEALTHY CHOICE • 550 Calories • 1100 mg of protein • 75 mg of cholesterol • 260 calories from fat BURGER PRICES Country Price in US dollars Switzerland $6.81 Australia $4.94 United States $4.20 Mexico $2.70 China $2.44 India $1.62 EXTENDED RESEARCH • The USB Wealth Management has done research to include a Working Time BIG MAC Index to show approximately how long a person has to work in order to make enough money for a BIG MAC THANK YOU MCDONALDS! DON GORSKE HAS A SECRET STASH OF BIG MAC’S IN HIS BASEMENT FREEZER .