Did you know that there is something called The Big Mac Index? It was introduced in 1986 by The Economist magazine and is exactly what you think it is. Economists use the price of a McDonald’s Big Mac as a way to measure the purchasing power parity between countries. Did I lose you there?

By comparing the franchise’s price of their infamous burger across the world, you get a better understanding of what people are paying in one country compared to another. Using something well known like a Big Mac puts a digestible twist on the otherwise hard to swallow world of economics. Let’s be real, that mandatory intro Econ class in University was good enough for me.

via @mcdonalds

Twice a year, the Economist will send people to purchase Big Macs all around the world. Once eaten, they'll convert the price they paid into dollars, allowing the index to show whether a currency is under or overvalued when compared to the dollar.


via @mcdonaldscanada

The Big Mac index addresses the obvious criticism that you would expect, showcasing how these burgers are priced in poor countries compared to rich ones. The difference is due to labour costs and the price of living in each respective city. I mean, it only makes sense that if your country has a certain average income per person, then the price of goods be adjusted to fit that average.


via @xiaoeats

Switzerland leads the pack of countries with a whopping price tag of $6.59 USD! As compared to the cheapest country, Malaysia, where you can snag the same burger for an unheard price $1.99 USD. Now, I'd LOVE to see what their value menu is like!


**All in US Dollars as of July 2016**

Switzerland // $6.59

Norway // $5.51

Sweden // $5.23

United States // $5.04

Brazil // $4.78

Canada // $4.60

Denmark // $4.44

Israel // $4.38

Australia // $4.30

New Zealand // $4.22

Euro Area // $4.21

Costa Rica // $4.12

Uruguay // $4.08

Singapore // $4.01

Britain // $3.94

South Korea // $3.86

Sri Lanka // $3.63

Pakistan // $3.58

UAE // $3.54

Turkey // $3.53

Chile // $3.53

Japan // $3.47

Thailand // $3.40

Venezuela // $3.38

Argentina // $3.35

Saudi Arabia // $3.20

Hungary // $3.15

Czech Republic // $3.06

Colombia // $3.04

Peru // $3.02

Philippines //$2.82

China // $2.79

Vietnam // $2.69

Egypt // $2.59

Hong Kong // $2.48

Poland // $2.42

India // $2.41

Mexico // $2.37

Indonesia // $2.36

Taiwan // $2.15

South Africa // $2.10

Russia // $2.05

Malaysia // $1.99


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