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Argentina Solves Its Inflation Problem


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HOLA441
Going to McDonalds is more expensive in Argentina than in USA, I knew that much, but seems that the evil looking clown has no problem in playing along the local corrupt government.

You see, there’s this thing called the Big Mac Index, an informal index created by The Economist in 1986 to measure purchasing power parity, or in other words how expensive stuff is compared from one country to another. To do that you need a product that is similar in each country, and the BigMac does just that. As informal as the Big Mac Index is, its been around long enough to be taken very seriously.

Surprised was I when I read that Argentina does quite well in the BigMac Index… but why is it then that I’ve always found it to be MORE expensive than other countries where Ive been to McDonalds?… wait.. why is it that I’ve always ordered Quarter Pounders with cheese instead of BigMacs?… oh! That’s right! There’s NO BIGMAC in Argentina! Its not advertised, its not displayed in any of their menu options, at least not openly in those big banners with pictures and menus. If you don’t see it offered, you don’t order it, and that’s the idea. McDonalds doesn’t want you to order the BigMac in Argentina.

But why would they do this? Simple. To LIE about the BigMac Index, and make Argentina sound 50% cheaper than it actually is. If you compare the unusually low official price of the BigMac to the rest of the menus you see how its surprisingly low. The Argentine government came to some sort of arrangement with McDonalds: Keep the BigMac at X price, and we’ll make it up to you. That’s why the price is kept so low, and that’s why they don’t tell anyone the BigMac is listed.

But can you actually get the BIgMac in Argentina, even if it’s a best kept secret? I do remember this one time when my father visited us in Argentina and ordered a BigMac and they told him they didn’t have it, but other sources assure that they are obligated to sell it to you, so give it a try!

That’s how it works in Argentina. In any other sane country a company would openly advertise a product that they have at a very low price. In Argentina, its kept secret so as to not lose money, yet officially have it listed.

NY Times details -

http://latitude.blogs.nytimes.com/2011/11/24/argentinas-big-mac-attack/

http://ferfal.blogspot.com/2012/03/mystery-of-argentine-big-mac.html

Edited by Peter Hun
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HOLA442
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HOLA443

I don't get this. What happens if you ask for a big mac? If they give you one, then surely the 'secret' would be out, and everyone would always just buy big macs? If they don't actually sell them at all, then how would this be allowed?

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HOLA444
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HOLA445

I don't get this. What happens if you ask for a big mac? If they give you one, then surely the 'secret' would be out, and everyone would always just buy big macs? If they don't actually sell them at all, then how would this be allowed?

They don't have them in store, the price is 35% cheaper but you you can't actually buy it. Laws in Argentina are flexible.

Edited by Peter Hun
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HOLA446
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HOLA447
Mervyn King may want to do this with all food in the UK.

No, we have FAR better tricks to hide food inflation.

Just look at how heavy a bag or crisps is these days.

Or how much soup/meat/whatever is in a can.

Or how heavy your chocolate bar is.

Or the vitamin content of the 32" TFT TV we are expected to buy every 6 months.

Edited by RufflesTheGuineaPig
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HOLA448
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HOLA449

Weird - apart from anything else, the one thing you'd expect to be fairly cheap anyway in Argentina is beef...

Suppose it depends on whether you are exporting it all to get hard currency or not.

probably the reason why the president is going big on the Falklands. 1 because of the money on the oil and 2 because it distracts people.

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HOLA4410

With a name like 'HUN'

- has it ever occured to you that off-spring of escaped Nazis are manipulating Sarf American countries in the background?

(along with aid from CIA used to undermine real democracy etc)

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HOLA4411

I don't know if it's still the case, but back in the 80s in UK McC@@ts you could order and receive a root beer despite it not appearing on the menu. It was like the secret track on that obscure progressive rock album you liked, except, erm different.

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HOLA4412

Weird - apart from anything else, the one thing you'd expect to be fairly cheap anyway in Argentina is beef...

Not sure beef is cheap in argentina - just very very good quality.

So I can't imagine that Argentine beef gets anywhere near a Big Mac -it is probably shipped in from hormone enriched US. Yumm. Not.

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HOLA4413

I don't know if it's still the case, but back in the 80s in UK McC@@ts you could order and receive a root beer despite it not appearing on the menu. It was like the secret track on that obscure progressive rock album you liked, except, erm different.

Ah don't get me started on McRootBeergate, one of my favorite soft drinks that go excellently with a burger and fries, stolen from us by some corporate BS, I think this all happened when they stopped making their own drinks etc and why now we have bad tasting coke and other "coca cola" company rubbish. I once emailed McD head office to complain and got a nice but negative response about bringing it back, maybe we need a pressure group like this:

http://www.facebook.com/pages/Bring-back-McDonalds-Root-Beer/181604877534

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HOLA4414
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HOLA4415

With a name like 'HUN'

- has it ever occured to you that off-spring of escaped Nazis are manipulating Sarf American countries in the background?

(along with aid from CIA used to undermine real democracy etc)

Well, I'm half Polish not German.

Not sure beef is cheap in argentina - just very very good quality.

Neither cheap or good, the best is exported for hard currency.

Edited by Peter Hun
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HOLA4416

I've a friend In Arg, we compare prices and PPP in terms of labour regularly over fb.

Wrt to their minimum wage. 1L of milk is 1 hours wages! Beef is twice as expensive there as it is over here (yet they produce it?). (Food over here is very cheap in comparrison). Housing over here is far more expensive.

I'm quite tempted to move there at some point in the future. I can see it being a place of improving living standards, especially for the workers.

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